RIBA AS SOURCE OF INEQUALITY IN SOCIETY

As a borrower or lender, anybody can participate in Riba. As a result, the two scenarios
pose different societal challenges. Now the issue may emerge as to how the borrower earns a
profit and how this becomes a societal concern. Of course, it appears to be profitable for the
borrower; however, this is not the case in the long run for society and the economy.
Borrowing at interest causes a variety of problems, including poor resource allocation,
economic instability, and government, individual, and organisational debt. For example,
barely $300 billion in interest is paid yearly on $3.1 trillion in household debt in the United
States.

To promote Riba is to legitimise the lenders' use of Riba without doing any work, which
would undoubtedly result in apathy and lethargy among them. Lenders will now have this
shortcut for future survival rather than putting their capital in any enterprise based on profit
and loss sharing, while no industrialization implies an increase in the unemployment rate.
Because of all of these concerns, there will be no proper system for money circulation in
society, and many individuals will confront a money shortage, which may lead to the
disintegration of social and humanitarian relationships among various strata.

Another element of Riba as a source of social imbalance becomes clear when borrowing
results in a loss. Borrowing in this situation may be done to meet basic needs or for
commercial purposes; if borrowing is done to meet basic needs, the lender is being harsh by
charging interest to the impoverished. the borrower was financially established and
participated in Riba to start or improve a business but incurred significant losses in business,
the borrower will find it difficult to repay the loan and interest. As a result, providing Riba-
based loans entails assisting borrowers in becoming a burden on the economy and society.
Instead, there is a need to encourage financially secure people to take out interest-free loans
or donate to charity.

"The massive and expanding divide between the wealthy and poor has been laid bare in a
new Oxfam analysis indicating that the 62 richest billionaires hold as much money as the
poorest half of the world's population," according to "The Guardian". When the world is
already in such a bad state that one out of every nine people goes to bed hungry. They would
definitely be unable to form good connections with other members of society. It may also
produce enmities, cutoffs, and hostility among members of a society.
 Concerning the source of the money shortage, "American populists have traditionally
concentrated on the shortage of money," argues Anthony Migchels. Their primary purpose
was to increase the money supply rather than abolish usury. However, usury is the root
source of money scarcity. " After underlining Riba's fundamental concern, he argues, "Usury
is a persistent drain on the money supply." Banks reinvest part of their interest earnings, but
not all. " In this approach, interest leads to economic servitude rather than actual societal
progress and prosperity.