Development of economics in the Period of the Prophet

Muhammad SAW

Arranged by :

Hendy Surya Ahdim

20200420175

UNIVERSITAS MUHAMMADIYAH

YOGYAKARTA

2020
 PREFACE
Thanks to Allah SWT who has given his belss to the writer for finishing the paper
assignment entitled “development of Islam in the period of the prophet Muhammad SAW”

I also wish express my gratitude for those who have guided in completing this paper. This
paper will tell us about economic, history of economic in the period of the prophet muhammad
SAW. such as how economics science be found, what is economic science, what the economic kind
in that's period, and others.

I hope this paper can be usefull for readers. To know, the historical of economic from
Islamic perspective or others. And also I hope the readers give me a comment, suggest, and tell me
if any incorrect section. Thanks for your attention, enjoy the paper, and I always waiting your
comment.

Yogyakarta, 24 oktober 2020

 Table of contents
Preface …………………………………………………

Introduction……………………………………………

1.1. Background of the paper…………………………

1.2. Problem formulation……………………………
1.3. Purpose of the paper……………………………

Theory and Discusion………………………………

2.1. Economic History in General…………………

2.2. Economics History in the prophet of Muhammad

era……………………………………………..

Conclusion……………………………………………

3.1. conclusion…………………………………
 Introduction
1.1. Background of the paper
We will discuss about economics. Economic in society perspective and economic in history
of the prophet Muhammad. So, before we go. I’ll explain you about economic itself.

Like we know terms of economics are familiar for us. Economics is a social science. Social
science about human activities are related to the production, distribution, and consumption of goods
and services. The term "economy" itself namely "oikos" which means family, and “nomos” which
means rules or laws. can be interpreted too household rules or household management.

Economics not just tell about money. But, a problem of prosperity in the householder, a
company and a country. to achieve that, you must be productive person. Therefore, first step to
prosperity yourself must be productive person. after that you should produce some product or
service. then, you can reach money after sellling your product or service.

1.2. Problem Formulation

1. Economics history in generally perspective
2. Economic history in the prophet of Muhammad era
3. S

1.3. Purpose of paper

1. To know the history of economics in general perspective
2. To know the history of economics in prophet of Muhammad era
 Theory and discussion
2.1. History of economics in general perspective
In generally, economics science be founded by adam smith. Adam smith Adam Smith is
often credited with being the first to develop the economy in the 18th century. From their book
“welth of nations”, smith try to find the historical of economics in the erope countrys. the thing that
attracts Smith in the field of economics is his morality.

In his book entitled “The Theory of Moral Sentiments” said because of wisdom, and justice.
can make the society survive. So it make smith learn about economic. Especially trade science.
then, the thought of economic history continued to some figures such as Alfred Marshall, J.M.
Keynes, Karl Marx, etc.

so, the outline is a the thinking of development in economics sciene begins with what is
called the classical flow. In this case tell about economic which can handled itself. In this flow
believe have a mechanism can bring back the balance of national income.

The classical flow had a failure after big depression in 1930 which showing the market cant
handle the stock market. For the anemies of classical flow, Keynes explain the theory and he said
matket is not almost to reach a balance because of that the government must intervency. So, the
source of distribution can reach the targets.

Then, they fight each other especially in economics aspec and get many result like new
classical, neo classical, new Keynesian, monetarist, and other.

Because of the hig progress in economic aspec in 1950. Make some economist studying
about that. One of economist john Kenneth galbraith explain how USA can gow into a prosperous
country by private business. In the other country this system can be called capitalism social.

2.2. History of economics in prophet of Muhammad era.

` the economics condition at prophet of Muhammad era especially in madinnah society
uncertain and cant be fixed only several time. Therefore, rasulullah find the solution to fixed the
condition to change slowly without depending the financial. Rasulullah doing the strategic and the
steps which will doing to anticipate and fixed the condition with many steps.
 After madinah becomes the state, all state duty activities has been implemented by muslims
in mutual cooperation and voluntary because madinah almost do not have state income and
outcoume. They get the income from many source, like gift and booty (ghanimah). Then, ghanimah
becomes once of state income and also zakat fitra and zakat mal. For the example like when
Islamics have a war with the infidels. This war can be called war of Bandar and also they win the
war and get the money for amount 4000 dirham every priosener of wars.

For the following year, from four hijriah by muslims getting the first rich which is the
source of state income. For the year, muslims’s income achieved generated from soil, brick, and
also weapon for war. And also his government, rasulullah apply jizyah, it is a taxs which is charged
for people who are non-muslims. This taxs given to man when they can paid. And for women, the
children, and others. The payment not only by money but also many goods.

Other than that, rasulullah also make a system called kharaj. It’s a land tax will be taken for
non-muslim. And also like ushr. But, the differenties is a farm and fruitage. Among the sources of
state income during the reign of the Prophet, zakat and Ushr were the two most important ones.
 Closing

3.1. Conclusion
Kesimpulannya, ilmu ekonomi sudah ada sejak zaman nabi Muhammad. Hal yang
mendorong adanya perekonomian dikarenakan madinah merupakan Negara yang baru terbentuk,
memiliki mobilitas ekonomi rendah serta kondisi masyarakat yang tidak menentu dan kurang bisa
diperbaiki dalam waktu singkat. Dan semua itu membuat nabi Muhammad tergerak untuk merubah
kondisi madinah.

Nabi Muhammad memikirkan banyak cara untuk merubah keadaan di madinah sebelum
adanya keuangan dan juga belum adanya pendapatan atau pengeluaran Negara. Cara itu diantaranya
seperti hadiah, hasil rampasan, dan berbagai zakat.

hingga pada akhirnya bisa mendapatkan pendapatan Negara. Pendapatan itu didapat dari
tanah, bebatuan, dan senjata untuk peperangan. Dan juga sudah mulainya penerapan perpajakan.

Dan pada akhirnya ekonomi diakui oleh kalangan umum dengan sejarah yang secara tidak
langsung berubah. Yang menghasilkan adam smith sebagai bapak ekonomi, sebagai penemu ilmu
economi