What is wrong with Islamic economics?

What is wrong with Islamic economics?  Not much, most of it is about charity and making sure people don't get scammed, but there are two places where it does have problems; first, it forbids lending at interest (usury) even though many Islamic countries today run on capitalism; and then there the inheritance laws, simply antiquated calculations about who you have to leave your money to and in what amounts, and these laws are sexist. 

Modern economics thrives on usury, what would happen if it was banned?  We don't know, but the unknown is scary.  Could we maintain a large world economy like we do now without usury?  if we banned it or weeded it out slowly would our economies shrink and collapse.  If you are apprehensive about banning usury and ending capitalism Muslims accuse you of being a corporatist who wants to exploit people, rather than someone who knows capitalism is not perfect, but it might be the best thing we have. 

And why really should you be told who to give your money to and in what amounts? Sons are supposed to get double what daughters get... what if your daughter is the responsible one and your son spends money like water on vice?  What if you don't want to give money to your sisters or mother, or at least you want to determine what to give them and in what amount.  These are unnecessary and restrictive laws and the percentages are random, it is just annoying to be bound too. 

However, there are some pretty positive economic commands in the Quran which you can find (here).  There is nothing wrong with stealing these laws, but the entire system does not need to be adopted nor does faith in Allah.  We can rob other cultures of what they have to offer without legitimizing them as a whole. 

No Usury

Al-Baqarah (2:275) الَّذِینَ یَأْكُلُونَ الرِّبَا لاَ یَقُومُونَ إِلاَّ كَمَا یَقُومُ الَّذِي یَتَخَبَّطُھُ الشَّیْطَانُ مِنَ الْمَسِّ ۚ ذَٰ لِكَ بِأَنَّھُمْ قَالُوا إِنَّمَا الْبَیْعُ مِثْلُ الرِّبَا ۗ وَأَحَ لَّ اللهَّ ُ الْبَیْعَ وَحَ رَّمَ الرِّبَا ۚ فَمَن جَ اءَهُ مَوْ عِ ظَ ةٌ مِّن رَّبِّھِ فَانتَھَىٰ فَلَھُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللهَّ ِ ۖ وَمَنْ عَادَ فَأُولَٰئِكَ أَصْ حَابُ النَّارِ ۖ ھُمْ فِیھَا خَ الِدُونَ Those who eat Riba(usury) will not stand (on the day of resurrection) except like the standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they say: “Trading is only like Riba(usury),” whereas Allah has permitted trading and forbidden Riba(usury). So whosoever receives an admonition from his Lord and stops eating Riba(usury) shall not be punished for the past: his case is for Allah (to judge); but whoever returns [to Riba(usury)], such are the dwellers of the Fire-they will abide therein. 

Ale-Imran (3:130) یَا أَیُّھَا الَّذِینَ آمَنُوا لاَ تَأْكُلُوا الرِّبَا أَضْ عَافًا مُّضَاعَفَةً ۖ وَاتَّ قُوا اللهَّ َ لَعَلَّكُمْ تُفْلِحُ ونَ O you who believe! Eat not Riba(usury) doubled and multiplied, but fear Allah that you may be successful. 

Aln– Nisa(4:161) وَأَخْ ذِھِمُ الرِّبَا وَقَدْ نُھُوا عَنْھُ وَأَكْلِھِمْ أَمْوَالَ النَّاسِ بِالْبَاطِلِ ۚ وَأَعْتَدْنَا لِلْكَافِرِینَ مِنْھُ مْ عَذَابًا أَلِیمًا And for their taking interest even though it was forbidden for them, and their wrongful appropriation of other people’s property. We have prepared for those among them reject faith a grievous punishment. 

Al-Baqarah(2:276) یَمْحَ قُ اللهَّ ُ الرِّبَا وَیُرْ بِي الصَّدَقَاتِ ۗ وَاللهَّ ُ لاَ یُحِبُّ كُلَّ كَفَّارٍ أَثِیم God deprives interest of all blessing, but blesses charity; He loves not the ungrateful sinner. 

Shams ud din 37 Al-Baqarah(2:278) یا أَیُّھَا الَّذِینَ آمَنُوا اتَّقُوا اللهَّ َ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِینَ فَإِنْ لَمْ تَ فْعَلُوا فَأْذَنُوا بِحَ رْ بٍ مِنَ اللهَّ ِ وَرَسُولِھِ ۖ وَإِنْ تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لاَ تَظْلِمُونَ وَلاَ تُظْلَمُونَ O you who believer! Fear ALLAH and give up what is still due to you from the interest (usury) if you are true believers. If you do not do so, then take notice of war from Allah and his Messenger. But, if you repent, you can have your principal. Neither you should commit injustice nor should you be subjected to it. 

Al-Baqarah(2:280) وَإِن كَانَ ذُو عُسْرَةٍ فَنَظِرَةٌ إِلَىٰ مَیْسَرَةٍ ۚ وَأَن تَصَدَّقُوا خَ یْرٌ لَّكُمْ ۖ إِن كُنتُمْ تَعْلَمُونَ And if the debtor is in hard time (has no money), then grant him time till it is easy for him to repay, but if you remit it by way of charity, that is better for you if you did but know. 

Ar-Rum (30:39) وَ مَا آتَیْتُم مِّن رِّبًا لِّیَرْبُوَ فِي أَمْوَالِ النَّاسِ فَلاَ یَرْ بُو عِندَ اللهَّ ِ ۖ وَمَا آتَیْتُم مِّن زَكَ اةٍ تُرِیدُونَ وَجْ ھَ اللهَّ ِ فَأُولَٰئِكَ ھُمُ الْمُضْ عِفُونَ And that which you give in interest5 (from others), in order that it may increase your wealth from other people’s property has no increase with Allah; but that which you give in Zakat.Seeking Allah’s Countenance, then those, they shall have manifold increase.

Inheritance 

An-Nisa (4:7) لِّلرِّجَ الِ نَصِیبٌ مِّمَّا تَرَكَ الْوَالِدَانِ وَالأْ َقْرَبُونَ وَلِلنِّسَاءِ نَصِیبٌ مِّمَّا تَرَكَ الْوَالِدَانِ وَالأْ َقْرَبُونَ مِمَّا قَلَّ مِنْھُ أَوْ كَثُرَ ۚ نَصِیبًا مَّفْرُوضًا 

There is a share for men and a share for women from what is left by parents and those nearest related, whether the property be small or large- a legal share. 

An-Nisa (4:11) یُوصِیكُمُ اللهَّ ُ فِي أَوْ لاَ دِكُمْ ۖ لِلذَّكَرِ مِثْلُ حَظِّ الأْ ُنثَیَیْنِ ۚ فَإِن كُنَّ نِسَاءً فَوْ قَ اثْنَتَ یْنِ فَلَھُنَّ ثُلُثَا مَا تَرَكَ ۖ وَإِن كَانَتْ وَاحِدَةً فَلَھَا النِّصْفُ ۚ وَلأِ َبَوَیْھِ لِكُلِّ وَاحِدٍ مِّنْھُمَا السُّدُسُ مِمَّا تَرَكَ إِن كَانَ لَھُ وَلَدٌ ۚ فَإِن لَّ مْ یَكُن لَّھُ وَلَدٌ وَوَرِثَھُ أَبَوَاهُ فَلأِ ُمِّھِ الثُّلُثُ ۚ فَإِن كَانَ لَھُ إِخْ وَةٌ فَ لأِ ُمِّھِ السُّدُسُ ۚ مِن بَعْدِ وَصِیَّةٍ یُوصِي بِھَا أَوْ دَیْنٍ ۗ آبَاؤُكُمْ وَأَبْنَاؤُكُمْ لاَ تَدْرُونَ أَیُّھُمْ أَقْرَ بُ لَكُمْ نَفْعًا ۚ فَرِیضَةً مِّ نَ اللهَّ ِ ۗ إِنَّ اللهَّ َ كَانَ عَلِیمًا حَ كِیمًا Allah commands you as regards your children’s (inheritance): to the male, a portion equal to that of two females; if (there are) only daughters, two or more, their share is two-thirds of the inheritance; if only one, her share is a half. For parents, a sixth share of inheritance to each if the deceased left children; if no children, and the parents are the (only) heirs, the mother has a third, if the deceased left brothers (or sisters), the mother has a sixth. (The distribution in all cases is) after the payment of legacies he may have bequeathed or debts. You know not which of them, whether your parents or your children, are nearest to you in benefits; (these fixed shares) are ordained by Allah). And Allah is ever All-Knower, All-wise. 

An-Nisa (4:12) وَلَكُمْ نِصْفُ مَا تَرَكَ أَزْوَاجُكُمْ إِن لَّمْ یَكُن لَّھُنَّ وَلَدٌ ۚ فَإِن كَانَ لَھُنَّ وَلَدٌ فَلَكُمُ الرُّبُعُ مِ مَّا تَرَكْنَ ۚ مِن بَعْدِ وَصِیَّةٍ یُوصِینَ بِھَا أَوْ دَیْنٍ ۚ وَلَھُنَّ الرُّبُعُ مِمَّا تَرَكْتُمْ إِن لَّمْ یَكُن لَّ كُمْ وَلَدٌ ۚ فَإِن كَانَ لَكُمْ وَلَدٌ فَلَھُنَّ الثُّمُنُ مِمَّا تَرَكْتُم ۚ مِّن بَعْدِ وَصِیَّةٍ تُوصُونَ بِھَا أَوْ دَیْنٍ ۗ وَ إِن كَانَ رَجُلٌ یُورَثُ كَلاَ لَةً أَوِ امْرَأَةٌ وَلَھُ أَخٌ أَوْ أُخْ تٌ فَلِكُلِّ وَاحِدٍ مِّنْھُمَا السُّدُسُ ۚ فَإِن كَانُوا أَكْثَرَ مِن ذَٰ لِكَ فَھُمْ شُرَكَاءُ فِي الثُّلُثِ ۚ مِن بَعْدِ وَصِیَّةٍ یُوصَىٰ بِھَا أَوْ دَیْنٍ غَیْرَ مُضَ ارٍّ ۚ وَصِیَّةً مِّنَ اللهَّ ِ ۗ وَاللهَّ ُ عَلِیمٌ حَ لِیمٌ In that which your wives leave, your share is a half if they have no child; but if they leave a child, you get a fourth of that which they leave after payment of legacies that they may have bequeathed or debts. In that which you leave, their (your wives) share a fourth if you leave no child; but if you leave a child, they get an eight of that which you leave after payment of legacies that you may have bequeathed or debts. If the man or women whose inheritance is in question has left neither ascendants not descendants, but has left a brother or a sister, each one of the two gets a sixth; but if more than two, they share in a third after payment of legacies he (or she) may Shams ud din 59 have bequeathed or debts, So that no loss is caused to (any one). This is a commandment from Allah; and Allah is ever All-Knowing, Most-Forbearing. 

(4:176) یَسْتَفْ تُونَكَ قُلِ اللهَّ ُ یُفْتِیكُمْ فِي الْكَلاَ لَةِ ۚ إِنِ امْرُؤٌ ھَلَكَ لَیْسَ لَھُ وَلَدٌ وَلَھُ أُخْ تٌ فَ لَھَا نِصْ فُ مَا تَرَكَ ۚ وَھُوَ یَرِثُھَا إِن لَّمْ یَكُن لَّھَا وَلَدٌ ۚ فَإِن كَانَتَا اثْنَتَیْنِ فَلَھُمَا الثُّلُثَانِ مِمَّا تَرَ كَ ۚ وَإِن كَ انُوا إِخْ وَةً رِّجَ الاً وَنِسَاءً فَلِلذَّكَرِ مِثْلُ حَظِّ الأْ ُنثَیَیْنِ ۗ یُبَیِّنُ اللهَّ ُ لَكُمْ أَن تَضِلُّوا ۗ وَاللهَّ ُ بِكُلِّ شَيْ ءٍ عَلِیمٌ They ask you for a legal verdict. Say:“Allah directs (thus) about Al-Kalalah (those who leave neither descendants nor ascendants as heirs). If it is a man that dies leaving a sister, but no child, she shall have half the inheritance. If (such a deceased was) a woman who left no child, her brother takes her inheritance. If there are two sisters, they shall have two-thirds of the inheritance; if there are brothers and sisters, the male will have twice the share of the female. (Thus) does Allah make clear to you (his law) lest you go astray. And Allah is the All-Knower of everything.” A s i a n J o u r n a l o f I s l a m i c F i n a n c e , V o l . 1 , I s s u e 2 ; D e c e m b e r 2 0 1 6 60 

Al-Baqara (2:180) كُتِبَ عَلَیْكُمْ إِذَا حَضَرَ أَحَدَكُمُ الْمَوْ تُ إِن تَرَكَ خَ یْرًا الْوَصِیَّةُ لِلْوَالِدَیْنِ وَالأْ َقْرَبِینَ بِالْمَعْرُوفِ ۖ حَ قًّا عَلَى الْمُتَّقِینَ It is prescribed for you, when death approaches any of you, if he leaves wealth, that he makes a bequest to parents and next of kin, according to reasonable manners. (This is) a duty upon Al- Muttaqun(the pious).