fartguru,
Economy is such a huge subject, I don’t know where to start. Although the khilafah state in the past did shorten the gap ( which makes our argument more credible ) what we need to understand is that whether Islam today is capable of shortening such a large gap.
As you probably already know Islam approaches the economic problem as being a problem of distribution not supply and demand.
There are many ayahs which prevent such a gap between the rich and the poor from forming such as :
“Lest it circulates solely among the wealthy from amongst you.” [Al-Hashr: 7]
“And let not those who are niggardly, who withhold the gifts which Allah has given them from His Grace, think that it is good for them. Rather it is worse for them. That which they hoard will be their collar on the Day of Resurrection. To Allah belongs the heritage of the heavens and the earth, and Allah is informed of what you do.” [Al-Imran: 180]
“O you who believe! Spend of the good things which you have earned, and of that which We bring forth from the earth for you.” [Al-Baqarah: 267]
“O you who believe! Do not prohibit the good things which Allah made halal for you.” [Al-Ma’idah: 87]
“But seek the abode of the Hereafter in that which Allah has given you, and do not neglect your portion of worldly life, and be kind even as Allah has been kind to you, and seek not corruption in the earth.” [Al-Qasas: 77]
“And squander not (your wealth) in wantonness. Lo! The squanderers were ever brothers of the devils.” [Al-Isra: 26-27]
The Sunan of An-Nisai states: “The Messenger of Allah (saw) forbade leasing the land. We said, ‘O Prophet of Allah, can we then lease it for some of the grain.” He (saw) said, ‘No.’ We said, ‘We used to lease it for the straw.’ He (saw) said, ‘No.’We said, ‘We used to lease
it in return of that on the irrigating Rabee’a.’ He (saw) said, ‘No, plant it or grant it to your brother.’”
Al-Musayyab narrated from Mu’ammar ibn Abdullah Al-‘Adawi in Bukhari that the Prophet (saw) said: “No one monopolises except the wrongdoer.”
the Messenger of Allah(saw) said: “Whosoever sought the life (matters) legitimately (halal) and decently he will meet Allah (swt) with his face as a full moon; and whosoever sought it arrogantly and excessively he will meet Allah while He is angry at him.”
The economic policy is the objective of the laws which deal with the management of human affairs. The economic policy in Islam is to secure the satisfaction of all basic needs for every individual completely, and to enable him to satisfy his luxuries as much as he can, as a person living in a particular society, which has a certain way of life. So Islam looks at every individual by himself rather than the total of individuals who live in the country. It looks at him as a human being first, who needs to satisfy all of his basic needs completely, then it looks to him in his capacity as a particular individual, to enable him to satisfy his luxuries as
much as possible. Islam looks to him at the same time, considering him a person linked with others by certain relationships run in a certain way, according to a particular fashion. The purpose of the economic policy in Islam is not to only raise the standard of living in the country without looking to secure the rights of life for every individual completely. Nor is it just to provide the means of satisfaction in the society, leaving people free to take from such means as much as they can, without securing the right of livelihood for each individual. Rather, it addresses the basic problems of everyone as a human being, who lives according to particular relationships, then enabling him to raise his standard of living and achieve comfort for himself, according to a particular fashion of life. As such it is different from all other economic policies.
Source: The Economic System of Islam by Taqiuddin An-Nabhani