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The only non-parasitic loans are those given at 0% interest, which is inline with the three religions. Of course the follow up question is how would you run a b
by azth 5y ago
The only non-parasitic loans are those given at 0% interest, which is inline with the three religions. Of course the follow up question is how would you run a bank or business that profits from loans? The answer is: you don't. Society is strictly better off without such parasites.
There are other ways for true risk sharing such as paying someone with a business idea cash in exchange for a portion of his business. If it succeeds, both parties benefit, if it doesn't, both parties lose.
> and hence not a very objective method of measurement.
It is very possible to measure the outcome of such system. Look at our current financial system today how corrupt it is, and compare it to the financial laws that Islam defines and the financial health of the resulting societies in each. Wall St would have to be shut down because of the immoral and parasitic practices it engages in (shorting, selling what you don't own, options, selling debt for debt, loans and mortgages, money printing (we know who's in bed with the fed) etc. etc.). The problem is that people keep believing they can patch the system to make it work out, but in actuality, the system only benefits a select few at the top, while everyone else suffers. The end is not going to be pretty when it all comes crashing down.
- imtringued 5y agoAncient egypt had grain banks. Grains tend to spoil at a rate of 2-4%. A loan with 0% interest is actually profitable because you get fresh grain with no loss at the end. You don't have to worry how to store your physical wealth. Money lets us pretend that society must pay the cost of spoiled grains by replacing them with fresh grains free of charge. So people must constantly raise prices or stop working.