In my paper entitled “Re-Defining Islamic Economics“, I explain that we need to found Islamic Economics directly on principles of the Quran. If we attempt to implement the order of Allah, which stress the feeding of the poor, and the prevention of concentration of wealth among a few people, we would not see the amazing inequalities which currently exist. Furthermore, these inequalities are increasing. Modern economic theory deliberately pays no attention to this, and in fact provides a justification for inequality; as I have said, modern economics should be recognized as ET1% — the Economic Theory of the top 1% — because that is its main purpose.There are many graphical displays of the amazing levels of current inequality; see One Graph, Another Graph, Multiple Graphs.
In a later post, I will elaborate on how Islamic Economics can provide a solution to the major economic problems facing the bottom 90% today. This post is to highlight the recent OXFAM report which explains how extreme the inequality is, and how it is becoming worse. This is the result of the disastrously bad economic theories being used to guide policy today. Follow the link to read the full article, and a video on the subject:
Eighty two percent of the wealth generated last year went to the richest 1% of the global population, while the 3.7 billion people who make up the poorest half of the world saw no increase in their wealth, according to a new Oxfam report released today.
Billionaire wealth has risen by an annual average of 13% since 2010 – six times faster than the wages of ordinary workers, which have risen by a yearly average of just 2%. The number of billionaires rose at a rate of one every two days between March 2016 and March 2017.
This huge increase could have ended global extreme poverty seven times over.
The Oxfam report states that it takes just four days for a CEO from one of the top five global fashion brands to earn what a Bangladeshi garment worker will earn in her lifetime. In the US, it takes slightly over one working day for a CEO to earn what an ordinary worker makes in a year.