Understanding Islamic Business Rules

The business rules of Islam make sense if they are followed. It is argued some of our biggest economic collapses could have been avoided had the U. S. been following them.

Islam treats money the same way economists treat it, as nothing but a medium of exchange. It has no value in and of itself. The difference is that economists use the terms “return on money” or “interest rate” to reflect actual earning of non money assets, machines, businesses, land, etc. The money itself produces nothing.

The perception that money itself produces return was considered wrong in the ancient times of the Bible. The Bible condemns of charging interest, also called usury.

An old grievance holds that one set of people in society does productive work and another is just along for the ride.  It reflects the view that receiving interest is taking someone’s money but giving them nothing in return. This is view Christians share with Muslims. Christians just don’t acknowledge the Bible’s condemnation of interest.

A longshoreman in New York City told me with disgust about the corporate headquarters, “Those people do nothing. They live off the backs of us who do the work.”

A fair profit is allowed in Islam. When a loan is made, it is treated as the purchase of something productive and the person making the loan receives some of the profit from what was purchased.

Islam is preoccupied with fairness. A good Muslim is not to take excessive profits.

5 Responses

  1. Juan Ruiz

    “A longshoreman in New York City told me with disgust about the corporate headquarters,”

    Who arranged to have the ship arrive at the dock? Not the longshoreman.

      1. Tonight or early tomorrow this site will host the 1,000,000th visitor. Our discussion page is a little quiet just now but we have people stopping by and I appreciate all of you.

          1. entech

            Better wait until he confirms his partnership with Putin. The last time american forces were in an unequivical vitory was in 1945 when Russia was an ally.

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