Application of Islamic economic system in a contemporary economy: an illustration with poverty and inequity in the USA

This article outlines the fundamental principles of Islamic economics largely from an historical and Qur'anic perspective, along with the relationship to economic development more broadly. Communist and capitalist systems, while well suited for generating material wealth, do not fulfil spiritual needs, and are forced to enact strict legal systems to maintain order. The Islamic economic system is evaluated as a potential solution to poverty in the United States, with the collection and distribution of zaka as one instrument of lessening inequality. The simplicity and moral foundation of Islamic economics makes it a viable alternative system in a world of growing complexity, particularly with respect to its ability to alleviate poverty.