29.“And do not keep your hand fastened to your neck”, means: Do not be parsimonious.“Nor outspread it altogether widespread”means: Do not be extravagant. The Quran desires the people to follow the golden mean, i.e. they should neither be so parsimonious as to prevent the circulation of wealth nor so extravagant as to destroy their own economy. On the contrary, they should learn to behave in a balanced manner so that they should spend money wherever it should be spent and refrain from becoming spendthrifts so as to involve themselves into trouble. As a matter of fact, it is ingratitude towards Allah’s favor to spend money for the sake of show, luxury and sinful acts and similar things which are neither man’s real necessities nor useful. Therefore, those people who spend money lavishly on such things as these are the brethren of Satan.
These clauses too, are not merely meant to be moral instructions for individuals. They are intended to safeguard the Islamic society against extravagance by moral instruction, collective pressure and legal restrictions. Accordingly, in the Islamic state of Al-Madinah, practical steps were taken to safeguard the community against extravagance. First, many forms of extravagance and luxury were forbidden by law. Secondly, legal measures were taken against it. Thirdly, social reforms were introduced to put an end to those customs which involved extravagance. The government was empowered to prevent people from the obvious forms of extravagance. Above all, Zakat and voluntary charity helped to break parsimony and the lust of hoarding money. Besides these measures, a public opinion was created that enabled the people to discriminate between generosity and extravagance and thrift and parsimony: so much so that parsimonious people were looked down upon as ignominious and the thrifty people were regarded as honorable. This moral and mental attitude became a part and parcel of the Muslim society, and even today the parsimonious people and hoarders are looked down upon in the Muslim society, while the generous people are respected everywhere.