Encyclopedia of Contemporary Jurisprudence

Usury and Interest: A Comparative Economic Study (book): Difference between revisions

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=== A review and analysis of recent attitudes on the justification of usury===
=== A review and analysis of recent attitudes on the justification of usury===
In the chapter discussing views on usury, Yuns elaborates on and critiques eleven theories that address the justification and legitimacy of usury (the justificatory theories concerning the legitimacy of interest) (pp. 64-74). The eleven theories that the author considers invalid are listed below:
In the chapter discussing views on usury, Yuns elaborates on and critiques eleven theories that address the justification and legitimacy of usury (the justificatory theories concerning the legitimacy of interest) (pp. 64-74). The eleven theories that the author considers invalid are listed below:
1. Risk theory: The increase in the risk of debt default (p. 64)
 
2. Al-Tathmir theory: profit, such as income generated from land and immovable properties (p. 65).
# Risk theory: The increase in the risk of debt default (p. 64)
3. The utility theory: The rationale behind the use of money (p. 66).
# Al-Tathmir theory: profit, such as income generated from land and immovable properties (p. 65).
4. The capital productivity theory: Profit is a natural consequence of capital (p. 67).
# The utility theory: The rationale behind the use of money (p. 66).
5. The time theory: Compensation in relation to duration (p. 69).
#The capital productivity theory: Profit is a natural consequence of capital (p. 67).
6. The theory of time preference: The monetary value over time and the distinction between present and future costs (p. 69).
#The time theory: Compensation in relation to duration (p. 69).
7. The liquidity preference theory: The temporal value of liquidity (p. 70)
#The theory of time preference: The monetary value over time and the distinction between present and future costs (p. 69).
8. The labor theory: the reward for saving money such as the wages earned from work and effort (p. 71).
#The liquidity preference theory: The temporal value of liquidity (p. 70)
9. The theory of accumulated labor: wealth such as accumulated work or indirect activity (p. 72).
#The labor theory: the reward for saving money such as the wages earned from work and effort (p. 71).
10. The theory of scarcity: scarcity and shortage of liquidity and capital in the absence of profit (p. 73).
#The theory of accumulated labor: wealth such as accumulated work or indirect activity (p. 72).
11. The insurance theory: secure the capital with minimal returns derived from substantial profits generated by the investment (p. 73).
#The theory of scarcity: scarcity and shortage of liquidity and capital in the absence of profit (p. 73).
#The insurance theory: secure the capital with minimal returns derived from substantial profits generated by the investment (p. 73).
 
At the conclusion of this chapter, the author presents several common criticisms to all theories. He indicates that in Islam, if capital takes the form of either goods or cash, it is permissible to set a portion of the profit in exchange; however, it is not permissible to assign a benefit to it. Thus, the theories mentioned are closely aligned with Islamic teachings as they establish a return and profit for capital. Moreover, these theories can be employed to challenge collective theories that deny any form of profit from capital (p. 75).
At the conclusion of this chapter, the author presents several common criticisms to all theories. He indicates that in Islam, if capital takes the form of either goods or cash, it is permissible to set a portion of the profit in exchange; however, it is not permissible to assign a benefit to it. Thus, the theories mentioned are closely aligned with Islamic teachings as they establish a return and profit for capital. Moreover, these theories can be employed to challenge collective theories that deny any form of profit from capital (p. 75).
Following these criticisms in the final section of his article, Al-Masry outlines six points. He notes that in Islam, both work and capital can provide adequate returns, and the reasoning behind the restriction of certain benefits for capital is to promote risk-taking among individuals, ensuring that risk is not solely associated with labor. He urges Muslims to steer clear of being trapped by socialist and capitalist perspectives and to preserve their intellectual freedom. (p. 81)
Following these criticisms in the final section of his article, Al-Masry outlines six points. He notes that in Islam, both work and capital can provide adequate returns, and the reasoning behind the restriction of certain benefits for capital is to promote risk-taking among individuals, ensuring that risk is not solely associated with labor. He urges Muslims to steer clear of being trapped by socialist and capitalist perspectives and to preserve their intellectual freedom. (p. 81)
===The critique of the perspective of Rafiq Yunus Al-Masri by Muhammad Riyaz Abrash===
===The critique of the perspective of Rafiq Yunus Al-Masri by Muhammad Riyaz Abrash===
As an economist, Mohammad Riyaz Al-Abrash offers a detailed critique of Rafiq Yunus Al-Masri's viewpoints, presenting his own arguments in 22 distinct points that refute Al-Masri's theoretical framework (pp. 89 to 148). He believes that:
As an economist, Mohammad Riyaz Al-Abrash offers a detailed critique of Rafiq Yunus Al-Masri's viewpoints, presenting his own arguments in 22 distinct points that refute Al-Masri's theoretical framework (pp. 89 to 148). He believes that:
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