The Theory of Model Sentiments
The Mecca of Ethics By Charles Fedor
What if I told you that economics owes a significant amount of intellectual theory to religion? What if I told you that ethical economics was invented in the 9th Century and predates capitalism? As an economist you are probably going into apoplexy screaming, “economics is a science based on rational thought!” and “religion has no place in a science!” I love playing this parlour game to watch economists come to two very uncomfortable conclusions. One: economics is not a science, but simply an expression of societal concepts of ownership and wealth. Two: that a centuries-old religion has created an economic system that is rational and ethical. I am of course talking about Islamic economics, a beautiful and fascinating by-product of the intersection of the Qur’an and the intellectual renaissance that was the Islamic Golden Age. As I am not a theologian, I will only be discussing economic concepts that form the bedrock of Islamic economics and how these can be repurposed for a secular society. So, let’s begin. Islamic economics - much like most economic schools - struggles to reach consensus on definition. That being said, the most popular definition is “that branch of knowledge which helps to realise human well-being through an allocation 20
and distribution of scarce resources that is in conformity with Islamic teachings without unduly curbing individual freedom, or creating continued macroeconomic and ecological imbalances”. Okay, wow, that is scarily close to how high schools define economics: “how society allocates scarce resources”. But hold up, it also promises to preserve individual freedom and correct “economic and ecological imbalances”. That definition instantly sounds like an economics I can get behind: promising to balance freedom and ensuring equality. Let’s have a brief dive into the basic features of Islamic economics.
Regulation Islamic Economics sets out a really strong case that the government has an active role in the management of the economy. Basically, it establishes firstly that people have the right to free enterprise with the following exceptions: • A ctivities banned by the Qur’an such as the sale of alcohol (Goodbye Ave, it was only a matter of time) or charging interest. • If the market operations are creating disequilibrium or injustice (British Petroleum would be on the chopping block here). • If a monopoly or sufficient market concentration creates excessive profit
50% of the Guild Council are robots. Guess who!
