I assume a large number of you in this thread would like to have a true islamic state with 100% Sharia law. Irrespective of my own personal views, I'd like to ask how you would solve certain economic problems that Islam poses. such as
1) a rigid taxation law which is inflexible and doesn't change relative to fluntuations in the economy. Furthermore, the tax is a flat tax is wealth and not income which is quite peculiar.
2)No interest rates? I can imagine a modern economy without interest rates
3) Some people seem to believe that stock markets and other forms of investment are akin to gambling?
4) The prophets saying (loose translation) " waylun le kully umatin ta'akulo mimma laa tazra'a wa talbisu mimma la tasna'a" which translates into a warning which advises moslems to only eat what mostly what they grow themselves and wear what they produce themselves. The sayig is often used as a warning for moslems to be autarkic and self sufficient. This mercantilist idea has failed repeatedly since the 18th century in economies around the globe such as the soviet union, syria, Saudi Arabia and China till Deng Xioopeng instituted his reforms in 1979. Virtually all modern economic theory and thought finds that free trade and comparative advantage was the way to go in order for consumer surplus and effieciency to increase (more output lower prices).
5) What about the taxes on non-moslems how is that solved?
6) Women and the economy. This is a problem, if women are encourage to remain at home and raise the children then you would have 1/2 of the work forced unemployed, like Saudi Arabia which has restrictions on female mobility. This would be a huge ineffeiciency in the market.
7)Centralized power in the form of a caliphate can be disastrous since centralzed economies are almost always doomed to failure.
8)Would there be minimum wages or unions? I know in Jordan there are Islamic labour unions which rarely act rationally and only concern themselves with economic issues
9)Limiting free trade which mutually benificial with Israel in most cases it is even more benificial for the moslem countries such as the red dead canal project between jordan and ISraeal, opposed by islamists and would benifit jordan a whole lot more due to Jordan's water shortae and is financed mostly by Israel
10) Back to interest rates again, In order for growth to occur one needs Invstment for Invetment one needs to take out loans, Why would banks give out loans if they cannot make a profit through interest rates? Wouldn't that be a problem for economic development? Also, Say for example your moslem friend gives you a loan of 1000 dollars and you are both moslem so there is no interest on the loan, and you agree to pay back the loan in 5 years, after 5 years the economy has experienced deflation and the value of money increased, and you pay back the 1000 dollars to your friend, but those 1000 dollars are worth more now than they were 5 years ago due to deflation, what do u do in that case, similar idea with straight up inflation?
It seems to me that the greatest problem with an ISlamic nation state is its archaic economic models
does anyone have any comments,
1) a rigid taxation law which is inflexible and doesn't change relative to fluntuations in the economy. Furthermore, the tax is a flat tax is wealth and not income which is quite peculiar.
2)No interest rates? I can imagine a modern economy without interest rates
3) Some people seem to believe that stock markets and other forms of investment are akin to gambling?
4) The prophets saying (loose translation) " waylun le kully umatin ta'akulo mimma laa tazra'a wa talbisu mimma la tasna'a" which translates into a warning which advises moslems to only eat what mostly what they grow themselves and wear what they produce themselves. The sayig is often used as a warning for moslems to be autarkic and self sufficient. This mercantilist idea has failed repeatedly since the 18th century in economies around the globe such as the soviet union, syria, Saudi Arabia and China till Deng Xioopeng instituted his reforms in 1979. Virtually all modern economic theory and thought finds that free trade and comparative advantage was the way to go in order for consumer surplus and effieciency to increase (more output lower prices).
5) What about the taxes on non-moslems how is that solved?
6) Women and the economy. This is a problem, if women are encourage to remain at home and raise the children then you would have 1/2 of the work forced unemployed, like Saudi Arabia which has restrictions on female mobility. This would be a huge ineffeiciency in the market.
7)Centralized power in the form of a caliphate can be disastrous since centralzed economies are almost always doomed to failure.
8)Would there be minimum wages or unions? I know in Jordan there are Islamic labour unions which rarely act rationally and only concern themselves with economic issues
9)Limiting free trade which mutually benificial with Israel in most cases it is even more benificial for the moslem countries such as the red dead canal project between jordan and ISraeal, opposed by islamists and would benifit jordan a whole lot more due to Jordan's water shortae and is financed mostly by Israel
10) Back to interest rates again, In order for growth to occur one needs Invstment for Invetment one needs to take out loans, Why would banks give out loans if they cannot make a profit through interest rates? Wouldn't that be a problem for economic development? Also, Say for example your moslem friend gives you a loan of 1000 dollars and you are both moslem so there is no interest on the loan, and you agree to pay back the loan in 5 years, after 5 years the economy has experienced deflation and the value of money increased, and you pay back the 1000 dollars to your friend, but those 1000 dollars are worth more now than they were 5 years ago due to deflation, what do u do in that case, similar idea with straight up inflation?
It seems to me that the greatest problem with an ISlamic nation state is its archaic economic models
does anyone have any comments,
