Thread on Islamic Economics & how it eradicated poverty.

TLDR; Islamic Economics supersedes every cringe-"ism" and potentially can eliminate all forms of financial oppression including poverty.

Islam historically successfully eradicated poverty, this magnum opus was achieved through a creation of a welfare society & the institutionalization of obligatory charity i.e zakah.

https://www.semanticscholar.org/paper/Zakat-and-Poverty-Alleviation%3A-Roles-of-Zakat-in-Ahmadadzri/092282b8bbbc2e21bd3fcd54fb4425411b1eb638
https://www.hilarispublisher.com/open-access/baitulmal-management-during-the-reign-of-caliph-umar-ibn-abdul-aziz-2151-6200-1000111.pdf

Infact, much of the Economics which developed in the contemporary world owes back it's origin to Islam.

The economic ideas which built civilizations are literally stolen from the Muslims, yet the western scholars never wanted to acknowledge this fact.

https://www.jstor.org/stable/43932410?seq=1

Interestingly, the free market system in Islam dominated the global economy of their time.

Consequently, this serves an addendum to the fact that Islamic Economics is clearly the most supreme conjecture for world prosperity.

Source: Bennison. The Great Caliphs, Page 157

The social justice Shari'a offered was so profound that the Christian & Jewish subjects who resided under the Islamic Empire ended up being far *more prosperous* & lavish under Islam than under their own rule.

Source: Arnold, Thomas Walker. The Preaching of Islam, Pg 149

The communist utopia on the other hand didn't just result in hunger & poverty but led to the genocide of 170 million people.

This is why countries which adopted communism never flourished and ended up in a plethora of darkness.

https://journals.sagepub.com/doi/abs/10.1177/0022002795039001001

Countries like Mali, India, Somalia, etc. which were once rich under Islam ended up in dark ages after adopting socialism/communism.

This alone confirms the fact that communism only leads to regression.

https://www.jstor.org/stable/1405524?seq=1
https://www.sciencedirect.com/science/article/pii/S0147596707000741
https://www.tandfonline.com/doi/abs/10.1080/00220388.2013.767006

Islam on the other hand, to give this policy a practical shape, raises the grand edifice of its economic scheme on the twin foundations of legal regulations and moral principles.

Through its moral teachings, it mentally prepares the society to subscribe to this scheme voluntarily; while by the force of its legal code, it imposes restrictions that compulsorily keep them within the ambit of that scheme.

Let's examine it in brief to grasp its tenor fully.

The prime reason for the perfection of Islamic Economics is the highest ethic of social justice it imbibes.

Islam adopts a middle of road policy for a society's well-being which is unlike any form of socialistic, communistic or capitalistic notion.

Interest-free economy, is the major pillar of the Islamic Economic system & thus this thumb-rule breaks the back-bone of all the other oppressive economic systems.

Infact, a number of economists and great thinkers criticized interest-based systems.

https://link.springer.com/article/10.1186/s40854-016-0028-7

Zak'ah (mandatory charity), which is the Muslim community's version of a "cooperative society" & a cornerstone of Islamic economics.

Instead of stockpiling capital seeking profligacy and extravagance, Islam infuses into people a spirit of voluntary spending for a good cause.

Zakāh basically, is the scheme of social security for widows, orphans, the handicapped and all those without the means to sustain themselves.

It ensures that no member of a Muslim society should remain unprovided by forming an institution of Bayt al-Māl (public treasury).

This system is so practical and powerful, that when the Shari'a is perfectly followed, it will successfully annihilate poverty from the society.

As was seen in the time of the early caliphates, when there wasn't even a single person to accept alms.

https://dergipark.org.tr/en/download/article-file/303956

Following the advent of Islam, all the unjust and tyrannical systems were discarded and Muslims dominated the economy & flourished globally because of this.

There is no reason why this system should be dysfunctional today.

And that's it, that is a simple explanation of how the divine penal law (Shari'a) literally brings economic prosperity with no poverty, oppression, or social hierarchy.

Islam wins again, just like that.

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