Does the Quran have a theory about capitalism and ethics in economics?

The Holy Quran, as a divine guide, does not directly employ the modern term 'capitalism,' as this concept emerged from specific historical and economic developments. However, this does not imply that the Quran is silent on economic matters. On the contrary, the Quran provides a comprehensive and profound ethical and legal framework for all aspects of human life, including economic activities. This framework can serve as a robust basis for analyzing and evaluating various economic systems. The Quranic perspective on economics goes beyond mere production and distribution of wealth; it strongly emphasizes its ethical and social dimensions, viewing them as inseparable from individual and collective responsibilities towards God and society. One of the most central economic principles in the Quran is the principle of 'Justice' (Adl). The Quran vehemently opposes any form of oppression, exploitation, or inequality in economic transactions. Numerous verses emphasize the necessity of observing justice and fairness in weighing, measuring, contracts, and all forms of exchange. This justice is not only individually important but also socially significant; meaning, the economic system should not allow wealth to accumulate in the hands of a select few, depriving large segments of society. In Surah Al-Hashr, verse 7, Allah states: "So that it [wealth] may not be circulated among the rich from among you." This verse highlights the need for equitable wealth distribution and the prevention of its monopolization by a privileged few. Another crucial principle is the 'Prohibition of Usury' or interest (Riba). The Quran explicitly forbids usury, equating it to waging war against Allah and His Messenger (Al-Baqarah, verse 279). This prohibition stems from the exploitative nature of Riba, which leads to an unjust increase in wealth for some and poverty and debt for others. It hinders the healthy circulation of wealth and productive investment in society. In contrast to usury, the Quran encourages 'trade' and lawful earnings acquired through mutual consent and fairness. This signifies that earning profit through legitimate and socially beneficial activities is not only permissible but encouraged, provided it is conducted through just and ethical means. 'Zakat' (obligatory charity) and 'Sadaqah' (voluntary charity) are also fundamental pillars of the Quranic economic system. Zakat is a mandatory financial obligation levied on the wealth of the rich, which is then distributed to the poor, the needy, debtors, and other categories specified in the Quran. This system is not merely a tool for wealth redistribution; it also purifies an individual's wealth and soul, preventing avarice and stinginess. Sadaqat (voluntary spending in charity) are also highly encouraged, reinforcing the idea that wealth is a trust from Allah, and a portion of it must be spent in His way and to assist those in need. These compulsory and voluntary charitable acts play a vital role in fostering social solidarity, alleviating poverty, strengthening human bonds, and preventing the excessive accumulation of wealth. 'Lawful Earning' (Halal) and 'Avoidance of Extravagance and Wastefulness' (Israf and Tabdhir) are other significant ethical principles in Islamic economics. The Quran emphasizes that individuals must earn their livelihood through legitimate and lawful means, avoiding any form of fraud, deception, hoarding, bribery, theft, or illicit transactions. Furthermore, the Quran strongly prohibits extravagance and Tabdhir (reckless squandering of wealth and resources). This prohibition applies not only to excessive personal consumption but also implicitly to the responsible use of public resources and the environment. The Quranic economy is a productive and beneficial economy where wealth should be utilized for fulfilling societal needs and sustainable development, rather than for luxury and destruction. In conclusion, unlike capitalism, which often emphasizes individual profit maximization and unrestrained competition (often without regard for ethical and social consequences), the Quran presents a comprehensive and ethics-centric view of economics. This perspective is founded on principles such as justice, the prohibition of usury, the obligation of Zakat, lawful earning, social responsibility, and moderation in consumption. Its ultimate goal is not merely material prosperity but the spiritual and social well-being of the entire community. In other words, the Quran seeks an economic system that both acknowledges economic freedom and confines it within ethical and social frameworks to prevent severe inequalities, oppression, and exploitation, thereby moving towards a balanced, cohesive, and virtuous society. These principles do not permit unbridled capitalism but rather bind it to divine criteria, ensuring that individual and collective interests develop in harmony.