Do you think that Islamic economics is no different than the traditional financial economics and transactions? Think again. There is a big difference between those two and it will be briefly discussed in this short post.
Islamic economics aims to effectively distribute wealth to many hands. As a result, brotherhood and equality are promoted through the financial transactions. In addition, its objective is to strengthen morality in economic transactions.
This objective aspires to modify human behavior, choice, and inclination and, thereby, promoting morality and well-being. While traditional economics concentrates on gaining profits through interest, Islamic economics focuses on the moral fiber.
Aside from satisfying the financial needs of individuals, moral or spiritual needs are addressed as well. By harmonizing the traditional economics with the Islamic belief system, more people can benefit from the available assets and resources.
While traditional economics is inclined to the worldly things and possessions, interests, and the need to provide for the physical needs, Islamic economics is leaning towards God, happiness, sincerity, fairness, family, and harmony. All these may not be tangible but are all necessary to live a decent and fulfilling “rich” life.
However, the two types of economics are not that different from each other. They have a key similarity as well. These two aim to distribute and allocate limited resources. In addition, every economist makes their own decision based on their beliefs.
How is this made possible? This is made possible by eliminating the usual elements that bring about injustice in business transactions. Examples include high interest, risky or unsafe transactions, and speculations. Expect all these and more from Islamic economics.
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