Islam in the Economy

Bismillahir Rahmanir Rahim - In the Name of Allah, the Most Beneficent, the Most Merciful!

The Economists of this day and age have based most of their derived principles on one basic theory; the profit maximization theory of a firm. This theory indicates that all firms want to maximize profits. We find, what is known as, the consumer perceived value is to be increased to attain more profits, because even though a good or service may have a low (actual) monetary value, if the customer feels that it is valuable, he is willing to pay more for it.

There are different ways to increase the perceived value of an item, in some cases increasing the cost of the item would actually increase its perceived value, like when we go shopping and find two items which seem to be the same but have different price tags, it would seem obvious to us that the one which is expensive is the one which has better quality.

So in this process of "playing the market" we find that the firms; due their intention of maximizing profits, end up becoming un-Islamic. As we see in the time of Nabi Shu'ayb (AS), the people also wanted to maximize profits, and they too had tried using the method of increasing consumer perceived value by playing with the weights and scales. The only difference is that today with the advancement of technology, we have found different means to increase this perceived value, but the concept of the principle remains the same. And what was the punishment of the people of Madyan; to whom the Prophet Shu'ayb (AS) was sent? A drought was caused upon them, through the lack of winds, after which a dark cloud came over them which they went under for shade from the drought, and when that happened, an earthquake caused their annihilation to the point where no one could tell that they had ever existed!!

Islam on the other hand teaches us to work and earn so as to provide for your family, but not to maximize profits at any cost, rather to buy and sell at the actual values, and not the perceived values. It is not always about the money, but it is always about the pleasure of Allah (SWT)!!

In a further analysis of the ayat which I began with, let us look at the tafsirs by two great Mufassireen: (Sura-e-Hud, Ayat 84)

Tafsir Al-Mizaan (Allama Tabatabai):

- Prophet Shu'ayb (AS) invited the people to stop their bad deeds and injustice, to the point that the Holy Prophet (SAW) said, "Prophet Shu'ayb was the orator of the Prophets."

- Prophet Shu'ayb (AS) used to live in Madyan itself, and from the way Allah calls him their 'brother' shows that he had kinship and relationship with them.

- Out of all the sins, this ayat points out the people's bad habit of cheating in their sale and not weighing the scales properly, indicating that this sin was the most apparent, and had spread everywhere, so much that its terrible ill-effects could be seen everywhere - and therefore it was necessary that a person should be appointed by Allah to invite them to avoid this particular sin, before inviting them towards other things.

- From the sentence "...surely I see you in prosperity..." and those before and after it (serve Allah, and fear of Qiyaamat), we can extract the meaning that Prophet Shu'ayb (AS) was using two ways to invite the people to avoid the sin of cheating:
1) since they had so many riches and were well-off, they needed not cheat and oppress others.
2) If they disobeyed Allah, they would have to face an inescapable punishment on Qiyaamat.

- The word "khair" above may also refer to the fact that Prophet Shu'ayb (AS) was telling the people that he is their well-wisher and wants nothing but their good by advising them. If this is the case, then even the warning against the punishment of Qiyaamat may be part of his good intentions for his people.


Tafsire Noor (Sheikh Qaraa'ati):

"And to Madyan..."
- The sending of prophets by Allah was a steady stream throughout history.
- The message of Prophet Shu'ayb (AS) was within the boundary of Madyan (only).

"...their brother..."
- Each prophet that was sent to a particular tribe, was from that same tribe.

"...serve Allah, you have no other god than He..."
- Monotheism is based on the recognition that there is only one God.
- Serving Allah is not sufficient; one has to avoid the polytheists and polytheism as well.

"...do not give short measure and weight..."
- The prophets did not only talk about akhlaq and belief; they also talked about the problems of economy.

"...surely I see you in prosperity (khair)..."
- Imam Sadiq (AS) has referred to this part of the ayat as referring to lots of goods and richness.
- This shows that prosperity and riches on their own are not enough to prevent people from cheating.
- By these kind words we can derive that one should be encouraging and be considerate of people's feelings while doing Nahi Anil Munkar.

"...serve Allah...I fear for you the punishment of an all-encompassing day."
- The Prophets' main word was always an indication of the beginning and end of man's life (i.e Tawheed and Qiyaamat)

"...do not give short measure and weight...I fear for you the punishment of an all-encompassing day."
- Belief in Qiyaamat provides the ground for Taqwa and avoiding sins.

"...I fear for you the punishment of an all-encompassing day."
- There is no escape from the wrath of Allah.

Thus Zuhair's View:
We have to be aware of the extent which we can go to inorder to obtain our livelihoods, there is no point to become rich in this world when in the end we are poor in the next! Let us remember to always buy and sell at the price which relates to the actual value of the commodity rather than the consumer perceived value.

Any arguments, comments or suggestions are most welcome! May Allah guide us all to the right path, on which are the purified ones, and away from which are the unjust and wrong doers!!