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Islamic Economic System vs Capitalism
Islamic Economic System vs Capitalism I like to study Economic this is why Im asking this question correct me if Im wrong but Capitalism allows exploitation of the Poor and of Labor under Capitalism in the United States which is really a Mixed Economy/Regulated Capitalism of both Capitalism and Socialism but mostly Capitalism the United States allows Gambling/Casinos which makes and can make people poor or poorer you can have Usury Banking and Slavery my question is what is the solution to Wage Slavery where the Working Poor get paid money which is very little is Zakat and Sadaqah the solution since Capitalism is based on Greed ?
38- SOCIAL JUSTICE, SOCIALISM, CAPITALISM Islam has prevented the reign of capital and in order to remove the abyss between the employee and the employer, it has provided the employee with a right to share in the capital and in the profit. Everybody can invest his money in a business. He can earn a great profit. Thus the money is not put into a bank. Banks cannot exploit the people by taking interest. Moreover, the rich have been ordered by Islam to give zakat to the poor. This is the only form for the basis of social justice. Zakat means to give one-fortieth of one's property to those who have the prescribed qualities. In Islam, those who are healthy enough to work are prohibited from begging. Zakat is given to those who are too ill or too disabled to work and to those who can work but earn their living with difficulty. Allahu ta'ala created one such poor person in every forty people. A rich Muslim who gives them zakat both gains Allah's love by doing his duty in the din and performs his social responsibility. He also protects his property and wealth against the rights and the attacks of the poor. If we calculate the national wealth and give one-fortieth of it to the needy, the danger of communism will not arise in any country. Nor will there be any reason why it should arise. Zakat, 'ushr (a kind of zakat), and alms are a kind of a social provision, and they are the divine precautions commanded in order to prevent economical disasters. The more they are obeyed the better the calamity of communism will be prevented.
http://www.hizmetbooks.org/Endless_Bliss_Second_Fascicle/bliss2-38.htm
Fundamentals of Islamic Economic System By Dr. Muhammad Sharif Chaudhry
6. Distribution of Wealth: Capitalism does not believe in fair and just distribution of wealth. Since it believers in full economic freedom and private ownership of means of production, wide economic disparities exist in capitalistic economy. Concentration of wealth in few hands takes place while huge majority of the populace is deprived of the very basic necessities of life. The privileged few live in luxury while poverty, ignorance, disease and unemployment is the lot of the multitude. This disturbed balance of distribution of economic resources and unbridgeable gulf between the haves and have-nots ultimately leads to class struggle and ultimate overthrow of the very system.
Islam, on the one hand guarantees provision of basic human needs such as food, clothing and shelter to everyone and, on the other hand, ensures fair and equitable distribution of wealth and economic resources among all. It does not tolerate existence of wide disparities among the rich and the poor and tries to eliminate concentration of wealth in few hands. For bridging the gulf between the rich and the poor and for ensuring equitable distribution of wealth, Islam has taken many steps such as Zakat and Sadaqat, laws of inheritance and bequest, voluntary charities and compulsory contributions in the form of taxes and duties. To prevent concentration of wealth in few hands Islamic economic code has taken measures like abolition of interest, prohibition of earning of wealth through haram means, prohibition of hoarding of wealth, etc.
http://www.muslimtents.com/shaufi/b16index.htm
[SIZE=+4]Zakat (the Alms Tax) What is Zakat?
Giving money for charity is highly commendable, and the sky is the limit, but Zakat is different because it is obligatory and is given in a calculated amount.
[SIZE=+2]Why?[/SIZE]
Zakat represents the unbreakable bond between members of the community, whom prophet Mohammad described to be "like the organs of the body, if one suffers then all others rally in response." One of the most important principles of Islam is that all things belong to God, and that wealth is therefore held by human beings in trust. The word zakat means both 'purification' and 'growth'. Our possessions are purified by setting aside a proportion for those in need, and, like the pruning of plants, this cutting back balances and encourages new growth.
Zakah does not only purifies the property of the contributor but also purifies his heart from selfishness and greed. It also purifies the heart of the recipient from envy and jealousy, from hatred and uneasiness and it fosters instead good-will and warm wishes for the contributors.
As Muslims pay the Zakat they have the genuine feeling that it is an investment and not a debit helping to establish economic balance and social justice in the society.
In general terms, what remains over and above the meeting of needs and expenses, and is hoarded for the full span of one year, is liable to Zakat. Zakat is the right of the poor in the wealth of the rich and is neither optional charity nor philanthropy.
Zakah has a deep humanitarian and social-political value; for example, it frees society from class welfare, from ill feelings and distrust and from corruption. Although Islam does not hinder private enterprise or condemn private possession, it does not tolerate selfish and greedy capitalism. Islam adopts a moderate but positive and effective course between individual and society, between the citizen and the state, between capitalism and socialism, between materialism and spiritualism.
[SIZE=+2]How is it Calculated?[/SIZE]
Zakah is a proportionately fixed contribution collected from the surplus wealth and earnings of the Muslim. Each Muslim calculates his or her own zakat individually. Zakah is paid on the net balance after paying personal expenses, family expenses, due credits, taxes, etc. Every Muslim male or female who at the end of the year is in possession of the equivalent of 85 grams of gold (approx. $1400 in 1990) or more in cash or articles of trade, must give Zakah at the minimum rate of 2.5%. Taxes paid to government do not substitute for this religious duty. The contributor should not seek pride or fame but if disclosing his name and his contribution is likely to encourage others, it is acceptable to do so.
Other gains and profits have their respective formulae, such as proceeds from industry, agriculture and animal husbandry, real estate, etc. as thoroughly detailed in specialized references.
Note the obligatory nature of Zakah; it is required. Muslims can also go above and beyond what they pay as Zakah, in which case the offering is a strictly voluntary charity (sadaqa). Sadaqa is given preferably in secret. Although this word can be translated as 'voluntary charity' it has a wider meaning. The Prophet said 'even meeting your brother with a cheerful face is charity'.
The Prophet said: 'Charity is a necessity for every Muslim'. He was asked: 'What if a person has nothing?' The Prophet replied: 'He should work with his own hands for his benefit and then give something out of such earnings in charity'. The Companions asked: 'What if he is not able to work?' The Prophet said: 'He should help poor and needy persons.' The Companions further asked 'What is he cannot do even that?' The Prophet said 'He should urge others to do good'. The Companions said 'What if he lacks that also?' The Prophet said 'He should check himself from doing evil. That is also charity.'
http://www.dawanet.com/nonmuslim/intro/islam/charity.html
[/SIZE]
Islamic Economic System vs Capitalism I like to study Economic this is why Im asking this question correct me if Im wrong but Capitalism allows exploitation of the Poor and of Labor under Capitalism in the United States which is really a Mixed Economy/Regulated Capitalism of both Capitalism and Socialism but mostly Capitalism the United States allows Gambling/Casinos which makes and can make people poor or poorer you can have Usury Banking and Slavery my question is what is the solution to Wage Slavery where the Working Poor get paid money which is very little is Zakat and Sadaqah the solution since Capitalism is based on Greed ?
38- SOCIAL JUSTICE, SOCIALISM, CAPITALISM Islam has prevented the reign of capital and in order to remove the abyss between the employee and the employer, it has provided the employee with a right to share in the capital and in the profit. Everybody can invest his money in a business. He can earn a great profit. Thus the money is not put into a bank. Banks cannot exploit the people by taking interest. Moreover, the rich have been ordered by Islam to give zakat to the poor. This is the only form for the basis of social justice. Zakat means to give one-fortieth of one's property to those who have the prescribed qualities. In Islam, those who are healthy enough to work are prohibited from begging. Zakat is given to those who are too ill or too disabled to work and to those who can work but earn their living with difficulty. Allahu ta'ala created one such poor person in every forty people. A rich Muslim who gives them zakat both gains Allah's love by doing his duty in the din and performs his social responsibility. He also protects his property and wealth against the rights and the attacks of the poor. If we calculate the national wealth and give one-fortieth of it to the needy, the danger of communism will not arise in any country. Nor will there be any reason why it should arise. Zakat, 'ushr (a kind of zakat), and alms are a kind of a social provision, and they are the divine precautions commanded in order to prevent economical disasters. The more they are obeyed the better the calamity of communism will be prevented.
http://www.hizmetbooks.org/Endless_Bliss_Second_Fascicle/bliss2-38.htm
Fundamentals of Islamic Economic System By Dr. Muhammad Sharif Chaudhry
6. Distribution of Wealth: Capitalism does not believe in fair and just distribution of wealth. Since it believers in full economic freedom and private ownership of means of production, wide economic disparities exist in capitalistic economy. Concentration of wealth in few hands takes place while huge majority of the populace is deprived of the very basic necessities of life. The privileged few live in luxury while poverty, ignorance, disease and unemployment is the lot of the multitude. This disturbed balance of distribution of economic resources and unbridgeable gulf between the haves and have-nots ultimately leads to class struggle and ultimate overthrow of the very system.
Islam, on the one hand guarantees provision of basic human needs such as food, clothing and shelter to everyone and, on the other hand, ensures fair and equitable distribution of wealth and economic resources among all. It does not tolerate existence of wide disparities among the rich and the poor and tries to eliminate concentration of wealth in few hands. For bridging the gulf between the rich and the poor and for ensuring equitable distribution of wealth, Islam has taken many steps such as Zakat and Sadaqat, laws of inheritance and bequest, voluntary charities and compulsory contributions in the form of taxes and duties. To prevent concentration of wealth in few hands Islamic economic code has taken measures like abolition of interest, prohibition of earning of wealth through haram means, prohibition of hoarding of wealth, etc.
http://www.muslimtents.com/shaufi/b16index.htm
[SIZE=+4]Zakat (the Alms Tax) What is Zakat?
Giving money for charity is highly commendable, and the sky is the limit, but Zakat is different because it is obligatory and is given in a calculated amount.
[SIZE=+2]Why?[/SIZE]
Zakat represents the unbreakable bond between members of the community, whom prophet Mohammad described to be "like the organs of the body, if one suffers then all others rally in response." One of the most important principles of Islam is that all things belong to God, and that wealth is therefore held by human beings in trust. The word zakat means both 'purification' and 'growth'. Our possessions are purified by setting aside a proportion for those in need, and, like the pruning of plants, this cutting back balances and encourages new growth.
Zakah does not only purifies the property of the contributor but also purifies his heart from selfishness and greed. It also purifies the heart of the recipient from envy and jealousy, from hatred and uneasiness and it fosters instead good-will and warm wishes for the contributors.
As Muslims pay the Zakat they have the genuine feeling that it is an investment and not a debit helping to establish economic balance and social justice in the society.
In general terms, what remains over and above the meeting of needs and expenses, and is hoarded for the full span of one year, is liable to Zakat. Zakat is the right of the poor in the wealth of the rich and is neither optional charity nor philanthropy.
Zakah has a deep humanitarian and social-political value; for example, it frees society from class welfare, from ill feelings and distrust and from corruption. Although Islam does not hinder private enterprise or condemn private possession, it does not tolerate selfish and greedy capitalism. Islam adopts a moderate but positive and effective course between individual and society, between the citizen and the state, between capitalism and socialism, between materialism and spiritualism.
[SIZE=+2]How is it Calculated?[/SIZE]
Zakah is a proportionately fixed contribution collected from the surplus wealth and earnings of the Muslim. Each Muslim calculates his or her own zakat individually. Zakah is paid on the net balance after paying personal expenses, family expenses, due credits, taxes, etc. Every Muslim male or female who at the end of the year is in possession of the equivalent of 85 grams of gold (approx. $1400 in 1990) or more in cash or articles of trade, must give Zakah at the minimum rate of 2.5%. Taxes paid to government do not substitute for this religious duty. The contributor should not seek pride or fame but if disclosing his name and his contribution is likely to encourage others, it is acceptable to do so.
Other gains and profits have their respective formulae, such as proceeds from industry, agriculture and animal husbandry, real estate, etc. as thoroughly detailed in specialized references.
Note the obligatory nature of Zakah; it is required. Muslims can also go above and beyond what they pay as Zakah, in which case the offering is a strictly voluntary charity (sadaqa). Sadaqa is given preferably in secret. Although this word can be translated as 'voluntary charity' it has a wider meaning. The Prophet said 'even meeting your brother with a cheerful face is charity'.
The Prophet said: 'Charity is a necessity for every Muslim'. He was asked: 'What if a person has nothing?' The Prophet replied: 'He should work with his own hands for his benefit and then give something out of such earnings in charity'. The Companions asked: 'What if he is not able to work?' The Prophet said: 'He should help poor and needy persons.' The Companions further asked 'What is he cannot do even that?' The Prophet said 'He should urge others to do good'. The Companions said 'What if he lacks that also?' The Prophet said 'He should check himself from doing evil. That is also charity.'
http://www.dawanet.com/nonmuslim/intro/islam/charity.html
[/SIZE]
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You'll not only have so much fun learning about so many things, you will be surprised InshAllah (God willing) that you'll be a more confident person once you take the shahada and lets all pray to Allah swt to keep you in His utmost protection and shower you with Love, happiness and ease in your acceptance towards islam, ameen. If you've come this far, all you need is a little more courage and rest assured you'll do great InshAllah. 
