Islam's Response to Contemporary Issues — Page 180
180 islam’s response to contemporary issues general elections, the immediate relief felt by all sections of society from the cut in interest rates, could be turned to the political advantage of the Tories. If this is done too early on, the secondary effects to which I have already alluded may begin to manifest themselves and offset any gains from the temporary relief brought about by lower interest rates. Some of the factors, which may unleash this undesirable phenomenon, are as follows: 1) The high rate of interest has not only choked the buying power of the general public but has also squeezed the jugular vein of industry. 2) It has certainly hurt a large section of the British public in its quest for the basic necessities of life. Those who borrowed large sums of money for a roof over their heads had calculated carefully before taking on a mortgage. They squeezed their ability to repay the mortgage and had squeezed their daily budget to meet repayments. Such people were already exercising restraint in unnecessary and imprudent expenditure. There was, in any case, little leeway to do so. This section of British society was certainly not responsible for inflationary trends. But, ironically, this is the section punished most severely by the so-called anti-inflationary measure of the government purportedly for the benefit of the general public. Meanwhile, the value of their houses has begun to nose-dive and they find themselves in an insoluble dilemma—unable to meet higher repayments and unable to find a buyer for their property. 3) Inflation is a complex phenomenon. It is not the purpose of this address to devote unnecessarily longer time to this subject, but for reasons, which will become apparent after a while, I have to beg the audience’s indulgence.