AskProfWolff:: Socialism and Islam

A patron asks: Hi Professor Wolff. My question is on the theoretical intersection of Islamic economics and Socialist economics. Due to the prohibition on interest and the strong distaste on accumulation of private capital, Islamic thinkers have always been concerned about inequality. I wanted to ask if Professor Wolff is familiar with some of the models within Islamic economics (wages as pre-modern wealth redistribution, Musharaka as joint housing and business owning vehicles without interest, Zakat as mandatory wealth tax for infrastructure development, etc.) If he is aware, or interested, where are the common points? Where are the points of departure? And more importantly, is there a genesis for potential synthesis within socialist economies that meld with Islamic frameworks that would be very exciting? "

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[TheUmmahFightCamp]

As a sensible person, I have listened to this man for many years! As a Muslim, I have to say that he is one of the most sensible and ethical people on social media. Even funny at times.

[uansari]

As a Muslim, I was raised with the concept that if God provides me with more than I need, then it is only because he is giving me an opportunity to help others in need. The order of priority in Islamic teaching is firstly to support the direct family, then neighbors, then extended family, and finally if something else is left over, to charities that need support. Ideally, if the community has followed the same process, then charities would be burdened by less and it would all balance out.

The subjective part, of course, is trying to determine how much I “need”... 3 months of savings...? 3 years? That’s the “jihad” (translation: struggle) that we are meant to face most often.

[wendylady]

Before gender, colour & religion, we are all human beings. One race, living on one planet, one breath at a time.
Humanity, without humanity will eat itself.

[youmaarludwig]

I've lived amongst Muslims and they are far from what the west have portrayed them to Thanks prof for being sensitive and just when explaining the sensibilities in a wonderful way

[Inivican]

Though I am not Muslim, I appreciate this video. It is informative.

[aliyasirpm]

chapter 107 of Holy Quran
107:1
Have you seen the one who denies the Recompense?
107:2
For that is the one who drives away the orphan
107:3
And does not encourage the feeding of the poor.
107:4
So woe to those who pray
107:5
[But] who are heedless of their prayer -
107:6
Those who make show [of their deeds]
107:7
And withhold [simple] assistance.

[kamalmemdali]

Ali, the 4th Caliph, was reported to have said, "There is no palace without 40, 000 slums around it"

[saburabdul-salaam]

Thank you Professor Wolff for your comments. I have never been a Marxist but I have seen some value in Socialism since the late 1960s. Then in 1974 I converted to the religion of Islam. I can appreciate your talking about religions and economics in general but a person can get a Ph.D. in Islamic Economics. Interest was not just forbidden by the Prophet Muhammad, we Muslims consider the Quran to be a Divine revelation and interest is forbidden in the Quran as well as legislation concerning inheritance, zakat (tax on savings) etc. I know your intention was to just give a brief response to a question you were asked but I strongly suggest you devote some time and effort to the study of Islamic economics.

[Sinleqeunnini]

Note also in ancient societies the interest on loans (including loans of seed/grain) could amount to %30-%50, a HUGE burden on the tenant farmer who had no choice if disaster struck him.

[amandadausman]

There are some interesting ideas in Islamic finance. They've done a lot of work on a financial system which doesn't rely on charging interest (technically) to do things like provide mortgages and stuff. I'm not an expert, bit you should look it up if you're interested!

[mikeburns]

Calvinist teachings that wealth was a Godly blessing, and poverty was God's punishment for sin and sloth. It has devolved into an economic trial by combat, where a wealthy person driving a poor person further into poverty is doing God's work. We currently have a government determined to continue this kind of God's work.

[AliAhmed-pfjq]

Thing which strikes me the most about Islam is that not only is charging of interest considered a sin, paying interest is ALSO considered a sin. Thereby making sure that muslims not only are stopped from creating unjust and exploitative systems but are also not supporting any such system indirectly. Unfortunately, reality is far from this and muslims do pay and receive interest. Staggers me that such little work has been done on Islamic economics.

[LydiaSings]

“All the believers were one in heart and mind. No one claimed that any of their possessions was their own, but they shared everything they had . . . there were no needy persons among them. For from time to time those who owned land or houses sold them, brought the money from the sales . . . and it was distributed to anyone who had need.” -Acts 4:32-35

[nmkzf]

Capitalism is not a human system. it is a for the few capitalists, who become non humans.

[widescreen]

“There’s class warfare, all right, but it’s my class, the rich class, that’s making war, and we’re winning.” ― Warren Buffett

[cavl]

Usury is allowed in Judaism.. and the Google definition changed from any interest to excessive interest. The concept of interest must be abolished if we're ever going to run a surplus and get rid of the debt.

[amintalha]

I urge Professor Wolff to read in depth about Islamic Economics. Islam is the only religion that has an economic system. That economic system is built on the collection of zakat or alms which are obligatory (unlike charity). Zakat is the third pillar of the five pillars of Islam. Zakat is paid yearly and is generally 2.5% of left over wealth of every Muslim that was not needed for a whole year. This zakat is paid to the government to spend on infrastructure, schools, policing, defence, preserving the environment, etc. The Islamic government has a source of income mandated by the religion and that what makes it an economic system. That is absent in Christianity and Judaism. Taxes are forbidden. Charging interest is also forbidden as stated in the video. There are different zakat amounts and percentages on livestock, jewelry, real estate, farming, etc. That system sustained the Islamic empire for a 1, 000 years until western systems were imposed on the Muslims.

[johndoe-bqxt]

I love your words Professor. You give me hope for all of our future. Go Co Ops !

[shanky]

The Caliphate economically is similar to free market socialism and interest is haraam so private property is highly discouraged and hoarding money is also haraam so it would be equally distributed in a Caliphate but Islam does not specify who should have ownership of the means of production so I think that may be flexible

[joset]

Corruptions will always impede the implementation fair economic business model.