ECONOMY

Prophet Muhammad (pbuh) not only formulated principles of social justice but also implemented them. The huge gap between the poor and the rich decreased with economic measures. A balanced and equal environment was formed in harmony with human nature. The poor began to wish the rich goodness, and the rich began to protect the poor.

The Prophet first determined a market place in Medina for Muslims apart from the market place where mushriks (infidels) and Jews buy and sell. He ordered that market place would not be constricted with no reserved vending spaces. Furthermore, no taxes would be imposed. In this way, Muslims could easily practice Islamic rules in mutual relations and do business in a separate place without the financial authority of mushriks and particularly Jews. Absence of taxes, the fact that costs were reduced made this market place profitable and attractive. The prohibition against reserved vending spaces was important in providing justice among entrepreneurs, omission of privileges, and encouraging industriousness. Prophet Muhammad stated that suppliers gained earnings and black marketers were cursed. He also tried to ensure the continuity of supply the goods to Medina by prohibiting domestic customs taxes that were taken during shipment.

When the Islamic lands were expanded and earnings increased, the Prophet appointed officials to collect taxes like zakat (alms giving), jizya, harac, ushur. He appointed special clerks to record the taxes. He ordered that officials would not pressure people when collecting zakats and they would not perform unfair implementations on them. He also ordered that goods in batches could not be separated to avoid zakat, and separate goods could not be piled together to take zakat. For that reason, when taking zakat, the officials took the middle weight animals, not plump or thin ones. If plumb animals were mostly chosen for the zakat, the Prophet would return them.

Prophet Muhammad did not take any of his large shares of taxes taken from the lands that were occupied under Islamic rule, or any gifts given to him. After allocating the yearly expenses, the Prophet spent the rest of it to advance the way of Allah. Despite his great authority and wealth, he lived modestly and asked for only enough giving from Allah. R. Bosworth Smith, who stated that such modesty and simplicity is a fine feature of Prophet Muhammad’s character, points out that he overcame great obstacles, led a marvelous life, achieved miraculous successes and gained the respect of all Arabia. Furthermore, he showed morality that was never before shown by an Arab. He also emphasized that Prophet Muhammad never thought or claimed that he was someone beyond a weak and fallible mortal, and he expressed his admiration for him.

Prophet Muhammad showed personal perfection with his actions as an individual in both the worldly and religious fields. He also demonstrated social excellence with his transformation of social life. His life represented balance and harmony everywhere.