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Beit Midrash
- Family and Society
- Financial Laws and Tzedaka
- Basics of Financial Laws
"You shall not give interest to your brother, [whether it be] interest on money, interest on food or interest on any [other] item for which interest is [normally] taken."
Why is interest prohibited specifically when giving a loan? Indeed, in the case of a man selling an object to another, he is permitted to raise the price in order to profit from the sale (contingent upon the buyer’s agreement). Why then, as opposed to all other financial transactions, is it prohibited to profit from a loan?
This question is linked to yet another Halacha which differentiates between a loan and other financial agreements:
The Gemara (Erkin 22. And Ketubot 86.) discusses the obligation of returning a loan and deliberates whether this is a fiduciary obligation or, rather, just a Mitzvah, as is written: "the debtor’s payment is a Mitzvah". In any other business situation, it is clear that the debtor must pay his obligation – so why is there such a deliberation only pertaining to a loan? It should be obvious that a borrower must return the money he borrowed!
These questions lead us to one basic principle. The Torah has ruled that a loan equals a grant. On the one hand, the Torah allows us to earn and profit according to our ability (unlike in a socialist economy). On the other hand, it instructs each of us to loan his fellow money when in need. The Torah describes the loan as a type of loan/grant. The reason for this is because the money does not belong absolutely to the person who earned it. It is, in fact, the property of the Creator.
This principle is also expressed in the words of the Gemara, "a loan is given in order to be spent". In other words, when one loans money to his fellow, these funds no longer belong to him. While the borrower can, if he desires, betroth a woman with this loan, the lender may not. The reason, as stated, is that the funds were given to the borrower "to be spent" as a grant, and do not belong to the lender. Therefore, since the loan is now the property of the borrower, the lender, at this time, has no rights to the loan. Hence, if he collects interest, he is stealing from his fellow (as explained by my esteemed teacher, HaRav Blumenzweig shlita).
This principle is also elucidated in Ohr HaChaim (Exodus 22, 24):
"If thou lend money to any of My people" – if you have money beyond your needs, to the point you can even lend, know that "even to the poor with thee" – you are holding that which belongs to the poor.
The prevalent understanding is that man owns his property, and under certain circumstances he should give some of it to others. The principle we learned overturns this picture: the property is not actually owned by he who possesses it – rather, "you are holding that which belongs to the poor." The funds required for his personal needs are rightfully in his possession, however, the remainder is only in his trust, and he must give it to the needy.
It seems this concept is encapsulated in the word "tzedakah". This is generally interpreted to mean "charity for the needy". However, the three letter root (tzadi.dalet.kof.) is the actual source of the word, and it means justice or honesty. In other words, one who gives charity is not giving out of the goodness of his heart; rather, he is doing what is just and honest. As discussed, the laws of providing loans are also under the category of justice.
On the one hand, the Torah does not support a socialist economy. There is no expectation or aspiration for all to be equal. Each individual can earn according to his level of success. There is, however, an aspiration that there will be enough money in the world to help all those lacking their basic needs. Even under the capitalist system, many countries are welfare states. However, the motivation underlying welfare policies is often to sustain capitalism, from fear of mass uprisings. In contrast, the Torah system promotes a welfare policy which is an integral element of the economy. Individuals may strive to earn maximal income, but any profit is a trust, which he must use in order to support those in need. The goal of this economic system and outlook is to ultimately create a better world, a "repaired" world and a happier world.
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Chukat "HOW ENTEBBE STOLE THE BICENTENNIAL
The Difference Between Historic & Eternal"
As we approach America's 250th birthday, it's worth remembering her 200th Bicentennial birthday, on Jul. 4th 1976, when Israel "stole the show" by shocking the world & miraculously saving 101 hostages in a foreign continent. As Pres. As Pres. Trump decides which countries get priority in his new Middle-East, it's worth reminding him of the difference between historic events and eternally historic ones. This obviously connects with this week's parsha, as well!
Kuzari -Rabbi Ari Shvat Kuzari class 6 - The Parable of the King of India
The advantages of testimony over circumstantial evidence or philosophical speculation.
Kuzari -Rabbi Ari Shvat Kuzari class 5- "Proofs of G-d"
This may be the most important class of the entire book, where we finally get to the Jewish proof of the existence of G-d and truth of the Torah. We should follow His own direction where He tells us how to get to Him: through the Nation of Israel: Jewish history, Jewish prophets (and today, prophecies fulfilled), and national reward & punishment towards Am Yisrael.
Ein Aya One Humanity, One Creator, One Jerusalem
Rav Kook innovatively and beautifully explains this aggadeta where our sages say that after Jerusalem was destroyed her cinnamon fragrance is only found locked in a particular kingdom's treasury.
Shlach Lecha "Why So Many Don't Make Aliya?" - Parshat Shlach
This short article deals with the weird phenomena that every single time Am Yisrael is meant to enter the Land of Israel, throughout the Tanach, 2nd Temple and until today, they "chicken out" and look for excuses. What's the problem with this mitzvah that proves so challenging. The article, based on sources, suggests that the difficulties of Eretz Yisrael is precisely her secret and beauty!
Kuzari -Rabbi Ari Shvat Kuzari class 4
The class deals with Islam and how the Muslim tries convincing the King of the Khazars, and why he was also rejected.
Beha'alotcha JEWISH STATE= GUIDE TO G-DLINESS & SELFLESSNESS
A Jewish State not only is a good idea, but educates us towards selflessness, altruism and G-dliness in our daily lives.
Ein Aya In Zion Even the Smoke of the Bark is Sweet
Just as Jewish nationalism is different from others, so too our capitol of Jerusalem is totally different than other national capitols. Rav Kook beautifully explains the passage in the Talmud that the trees of Yerushalayim were cinnamon trees.