Ethical foundations of Islamic economics

Islam is a total way of life that leads one to seek the good of both this life and the next. Outside influences and overall divergence confronted Muslims with secular and materialist Western ideas that weakened their faith. As excessive materialism took its toll on the West, Islam began its resurgence. Still, Muslims are not sure about the Islamic outlook on economic issues because much has changed since the days of medieval scholars. If one wishes to understand Islamic economics, one must look to Islam's ethical system. A summary of the axioms of the Islamic ethical system are unity, equilibrium, human freedom, and responsibility. Both capitalism and socialism oppose these axioms and thus are not Islamic approaches. It is therefore even clearer that an independent Islamic system needs to be shaped. Some objectives of an Islamic economy appear to be social justice, greater employment, and universal education. The extremes of both complete collectivization and complete freedom