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Wealth must be in circulation at all time
Another important objective of economic system of Islam is to discourage hoarding and ensure the
constant circulation of wealth. About hoarding of wealth the Quran says: They who hoard up gold
and silver and spend it not in the way of Allah, unto them give tidings of a painful doom. On the day
when it will (all) be heated in the fire of hell and their foreheads and their flanks and their backs will
be branded therewith (and it will be said unto them). Here is that which ye hoarded for yourselves.
Now taste of what ye used to hoard: (At-Taubah-9 : 34-35). So the Quran not only discourages
hoarding of wealth but also threatens persons responsible for this heinous crime with the dire
consequences.
The economic system of Islam achieves this objective through Zakat. Zakat is a great enemy of
hoarding. If it is paid regularly on the hoarded wealth, it would eat away the whole or main portion of
such wealth in a few years time. Thus a person possessing such hoarded wealth is forced to bring it
into circulation by investing it or spending it. The Prophet of Islam (PBUH) is reported to have said:
Beware! Whoever is the guardian of an orphan who has property, should trade with it and should
not have it (hoarded), lest the Zakat should consume it. (Tirmizi)
The objective of circulation of wealth is also achieved through other compulsory and voluntary
Sadaqat, through laws of inheritance and will and through monetary atonements.

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Wealth must be in circulation at all time

  • 1. Wealth must be in circulation at all time Another important objective of economic system of Islam is to discourage hoarding and ensure the constant circulation of wealth. About hoarding of wealth the Quran says: They who hoard up gold and silver and spend it not in the way of Allah, unto them give tidings of a painful doom. On the day when it will (all) be heated in the fire of hell and their foreheads and their flanks and their backs will be branded therewith (and it will be said unto them). Here is that which ye hoarded for yourselves. Now taste of what ye used to hoard: (At-Taubah-9 : 34-35). So the Quran not only discourages hoarding of wealth but also threatens persons responsible for this heinous crime with the dire consequences. The economic system of Islam achieves this objective through Zakat. Zakat is a great enemy of hoarding. If it is paid regularly on the hoarded wealth, it would eat away the whole or main portion of such wealth in a few years time. Thus a person possessing such hoarded wealth is forced to bring it into circulation by investing it or spending it. The Prophet of Islam (PBUH) is reported to have said: Beware! Whoever is the guardian of an orphan who has property, should trade with it and should not have it (hoarded), lest the Zakat should consume it. (Tirmizi) The objective of circulation of wealth is also achieved through other compulsory and voluntary Sadaqat, through laws of inheritance and will and through monetary atonements.