Islam & Economics
September 1, 2021
In this episode, Nathan Mech, program outreach project manager here at the Acton Institute, sits down with Ali Salman, co-founder of Islam & Liberty Network, to discuss his new book, Islam & Economics.
Islam offers three moral principles of economic organization: ownership, wealth creation, and wealth circulation. Based on these principles, Islam and Economics derives a framework of operational institutional tenets for the economic organization of a society. It addresses all important business, policy, and equity issues that any economic system should resolve and broadens the discussion on the modern discipline of “Islamic economics.”
In this conversation, they delve into the most contentious issue within Islamic economics, which is charging interest. They cover how Islamic banks have answered the Qur’anic prohibition on usury, and how Salman sorts through this problem. Next, they explore the Islamic view of taxation, and Salman made an Islamic argument that the only two permissible forms of taxation are wealth taxes and land use taxes. Based on his view of taxation, Salman built an Islamic case for a limited government.