Some aspects of an interest-free economy

The author, in a description of an interest-free economy, names and then clears up a misconception amongst some regarding economic systems. Rejection of the economic system of Capitalism is not, as might be felt, a rejection of capital as a factor of production. Capital can in fact be used without the adoption of a capitalist's worldview. The author discusses the role of capital as leading to wealth production and he expounds on the functions carried out by capitalists and by deposit holders in an economy. He next draws a crucial distinction between profit and interest--the first entails some risk; the second is of complete security. In an interest-free economy, there is no such entity as a risk-free capital venture. The entrepreneur, because his lenders share the risks and the fortunes of his endeavor with him, is safe from pre-determined interest payments. The rate of return on capital is linked directly to the operating results of the financed project. The interest-based sys