Will You Love a Financial System that Has Zero Percent Interests? Welcome to the Islamic Financial System. Only the Greedy Will Hate It.

[Loofydralb]

If I sell stuff without markup, how do I pay my staff, my utilities, my rent etc?

Of course you sell with profits. A straightforward trade is not an issue in an Islamic economic system. You are allowed to take as much profits your products can get, subject to crossing the line into persecution (for want of a better word).
Eg you own all the wells in town and you charge it so that 30% of the bottom poor cannot afford it. That is not allowed in Islam. That is persecution.

 

[Loofydralb]

If it does not charge interest or interest in any other name, then it should be good. But Japan is currently almost zero interest and it's not working. Good if you are buying Japanese homes. Or start a business.

Usury, interests, capitalism are opportunistic and predatorial. No good will ever come out of that system and it has been proven again and again. The majority loses.

Japan having zero interests does not mean it is similar to Islamic finance. But what is similar is that in a resource-poor nation or community, the growth will be minimal, but the load bourned by the vast majority are almost equal. Tied at the waist, Islamic finance comes with Islamic obligations. That works wonderfully for society.

 

[JohnTan]

Of course you sell with profits. A straightforward trade is not an issue in an Islamic economic system. You are allowed to take as much profits your products can get, subject to crossing the line into persecution (for want of a better word).
Eg you own all the wells in town and you charge it so that 30% of the bottom poor cannot afford it. That is not allowed in Islam. That is persecution.

It looks like you just replace the word 'interest' with 'profit'.

What if I own all the wells in town and charge it so that the bottom 25% cannot afford it? Is that allowed in islam? Or you need to consult with your non-economist mullahs?

 

[Loofydralb]

It looks like you just replace the word 'interest' with 'profit'.

What if I own all the wells in town and charge it so that the bottom 25% cannot afford it? Is that allowed in islam? Or you need to consult with your non-economist mullahs?

Sorry that number is moot. There is no fixed number. It is outcomes that are of importance. That number should be such that no one gets deprived of the water.

 

[duluxe]

It looks like you just replace the word 'interest' with 'profit'.

What if I own all the wells in town and charge it so that the bottom 25% cannot afford it? Is that allowed in islam? Or you need to consult with your non-economist mullahs?

The word 'interest' is haram, but 'profit' is not. Whether interest or profit, revenue enters the bank's pocket. There is no standard when shared profit is made by agreement. Agreement could also mean bribe involved.

 

[congo9]

To earn money without the typical practice of charging interest, Islamic banks use equity participation systems, which are similar to profit sharing. Equity participation means if a bank lends money to a business, the business will pay back the loan without interest and instead give the bank a share in its profits.

That's workable.

 

[saynotomsm]