Does anyone know what is the diffrence between Capitalism and Islam's Economic System

[truthseeker63]

Does anyone know what is the diffrence between Capitalism and Islam's Economic System ?

[siam]

My Opinion.

Depends on how you define capitalism.....

"Islamic" systems are based on the principle of Tawheed.(One God)--what this has to do with economics you might wonder----from the principle of Tawheed flows two other principles, that of 1)Trusteeship (Khalifa) and 2)Equality.
What this means in socio-economic terms is that all wealth and the means to generate wealth is a blessing from God----a Trusteeship that comes with responsibility. Since all human beings are equal, irrespective of wealth, no one has the exclusive "right" to wealth-----everyone in the community/nation/globe has an equal right to achieve wealth. This means that any system that assigns special priviledges to wealthy individuals, corporations or nations, at the expense of those who have less, is an unjust system.

In such an economic system, taxes are to be used for those in society/community in need---in areas such as healthcare, education, welfare of the elderly, those in need...etc---this creates a flow of money in society. ---that is, rather than money stagnating in stock markets, banks, financial intitutions---money flows back into society to create better lives for everyone. Financing is a necessary tool to generate wealth---Financing must be based on equality----that is both the lender and the borrower have a partnership that shares the profits and risks of a venture. Thus---money used to generate money is an unjust concept that priviledges the lender over the borrower creating inequality. On the other hand ---financing used as a tool to generate profits through trade (goods,services) creates benefits to both lender and borrower and is better for society as a whole.---it creates a flow of money. Money that circulates in society creates benefits for everyone, money that stagnates in the hands of a few---who get richer and richer---is an unjust system that benefits only a few.
Another important concept of bussiness and economics mentioned in the Quran is transparency. This eliminates "crony capitalism" (a problem in the East) and lessens misunderstandings and disputes. It also provides for clear oversight and a counterbalance to unjust practices.

Money/wealth does not belong to any individual or nation---it belongs to God and we are his trustees. Because it belongs to God, everyone has a right to it---therefore, wealth must be shared........

[siam]

forgot to mention---charging interest falls into the category of "money used to generate money" and is an unjust economic system ---not to mention stupid---as it causes the value of money to decline over time.....

[truthseeker63]

Private Property Rights and Ownership vs Common/Collective Property Ownership. Who should own the Private Property Means of Production ? Capitalism vs Socialism. My problem with Socialism is that it will deny Individualism Socialism is Collectivism what do you think here is a link with both sides to the issue I believe in Private Property Socialism believes in Collective Property also Capitalism believes in Usury and does not believe in helping the Poor Capitalism is also Secular like Socialism I myself as a Individual believe that Islam is the only system we humans need we don't need Capitalism or Socialism.

http://freedomkeys.com/collectivism.htm

There is a widespread misconception with regards to the true nature of capitalism, which has largely been bought about by an uncritical acceptance of Marxist-Socialist terminology, itself not only untrue, but intended to be misleading. The essential characterstic of capitalism is not that it permits private ownership of means of production, distribution and exchange, be it land, building, machinery, etc. The personal ownership of all these factors have been since the beginning of mankind a part of natural law. Even the earliest barbarians who owned a stone axe and a bow, and arrows, or the primitive plough and other tools, were not capitalists. Neither were men of feudal times capitalists even if they were great lords. And not even a miser who had accumulated a hoard of gold a capitalist. They all were, and in similar circumtances still are, owners of property.

http://www.rumormillnews.com/cgi-bin...cgi?read=23036

Capitalism and Islam: what's the difference?

Is there any real difference between the Capitalist and the Islamic economic system? Both systems allow you to make money, but they are completely different in how money is accumulated and spent. The reasons for such great differences is the source and hence, the ultimate goal of each system.

http://www.sa.niu.edu/msa/articles/capitalism.htm

[YusufNoor]

a simple difference is Riba. the banks behind the capitalist system issue the money, because if the state did it wouldn't be a "free market system." those banks, CHARGE for the printing of money AND as the printer of money or creator of capital, the control the "value" of the money. they control the economy by lending or not lending money; that is when the freely loan money, the economy grows and when they contract the flow of money, the economy shrinks. by pretending that the DON'T have this control over money and by limiting government regular, you have your imaginary "free market"

in Islam you have a genuine free market BUT your money needs to have a certain "value" of it's own. a great and absolutely awesome lecture on the value of money is given by Maulana Imran Hosein in The Prohibition of Riba in the Qur'an and Sunnah.

and an interesting video on the control of money is Money as Debt 2:

http://www.dailypaul.com/97944/money...hed-full-video

and the first Money As Debt:

http://video.google.com/videoplay?do...6453790090544#

wa Salaam

[Karl]

Private property rights including parental sovereignty are the most sacrosanct of worldly things. If you have these rights taken from you by the antichrist socialists you may as well be dead.
Islam is about free market principles and respecting private property. The buying and selling of capital is ok. Prosperity is encouraged under Islam.

[siam]

"Prosperity is encouraged under Islam"---this is true,
...however, prosperity is not only for the benefit of the individual---but also for the whole society---therefore, in Islam---prosperity is a "right" for all.

[truthseeker63]

The problem I have with Capitalism is that it is Secular like Democracy and Socialism and promotes Secularism Capitalism is Man Made anything goes with Capitalism you can have Usury and Capitalism does not believe in helping the Poor there is no Zakat and Sadaqah in Capitalism.

[siam]

I think "secularism" can be a strength. ---Not everyone is a Muslim, but we are all human beings---Precisely because it is a "man-made" system---secularism can choose any ethico-moral system to implement---if it chooses the "Islamic" ethico-moral system without the religious label---it would still make far more sense and be more practical than the present capitalist sytem we have---without infringing on other religious practices. That is---from a purely secular socio-economic perspective---the "Islamic" system works better for the benefit of both the individuals and society than any other system devised by man......
....The same can be said of governance/politcs or democracy......

[سيف الله]

Salaam

Interesting question you posed.

Many in west eulogise capitalism, as the 'only' way to organise human societies but there are those that disagree.

Heres two interesting discussions, dont have to agree, just food for thought.

[Karl]

"Prosperity is encouraged under Islam"---this is true,
...however, prosperity is not only for the benefit of the individual---but also for the whole society---therefore, in Islam---prosperity is a "right" for all.

Allah creates all things so individuals may prosper, all life on Earth and throughout the universe. How do you define society? Like Marx? Society on it's own is meaningless and does sound like a socialist catch cry. Rights are simple, ALL living things have the same right to live, if they didn't Allah would destroy them. Some beings are stronger and more intelligent than others so they prosper better, as the saying goes "God helps those that help themselves".
Of course these are only my opinions not pontifications, others may agree or disagree with me.