two party system

[GuestFellow]

Salaam,

all of the wealth and power in the hands of a few individuals while the masses suffer.

That sounds like capitalism. :

I think you mean it never works in practice. That's only because the individuals who tried to implement it became too power-hungry. Marxist communism is a brilliant economic theory, in my opinion. Now, what about socialism? I prefer socialism to capitalism because in capitalism people are left out. Socialism includes everyone and every citizen is given a fair chance at success. Economic success, that is.

The main problem with socialism is high taxation. I do agree with you that I prefer socialism over capitalism. Then again, I prefer Islamic economics.

 

[Just_A_Girl13]

That sounds like capitalism.

Agreed.

I do agree with you that I prefer socialism over capitalism. Then again, I prefer Islamic economics.

Interesting. Not a lot of people agree with me on this. But thank you Islamic economics sound interesting.... what are they like?

 

[Mister Agenda]

Economics is all about what is incentivized. If the laws are rigged in such a way that it is attractive to borrow and spend, that is what people will do. Not all, but enough to affect the whole society.

I think highly of capitalism in the sense of free markets, but in the USA we have corporatism, consumerism, and 'crony capitalism'. We're pretty far from anything close to laissez faire capitalism.

I like Canada's economic policies better: They instituted spending reform (new government spending must be balanced by cuts elsewhere to pay for it) and are sitting pretty now compated to the USA. They did lots of other stuff differently too, but that one stands out as radically different from the economic course my country is on. They also are not known for throwing theirmilitary weight around, something I wish we weren't known for as well.

 

[GuestFellow]

Interesting. Not a lot of people agree with me on this. But thank you Islamic economics sound interesting.... what are they like?

Salaam,

I think western economics is mainly concerned about resources. Economists believe that the world has limited resources and so the distribution of resources must be governed. This is where supply and demand plays a role here. If there is high demand for certain goods, then the price will be raised to maintain the supply. Where, there is a low demand for particular goods, then the price will be lowered. Interests rates will be set to encourage consumers to spend more money or to save up money depending on the circumstances.

Inflation will be considered when setting interest rates. In western economics, inflation is very important. Where the price of goods rise, the value of money falls. Basically, you have less money to buy goods. As I mentioned before, the price increases where supply is diminishing. If the supply of goods diminishes, price increases and the value of money values. When this continues to happen, you get hyper inflation, where money is worthless, you cannot buy anything.

Western economics is different from Islamic economics in two ways. Islamic economics does not believe that resources are limited and interests is forbidden (riba).

My knowledge of Islamic economics is poor and I might make mistakes if I continue. I hope my understanding of western economics is not flawed, so feel free to correct me.

EDIT:

Speaking of two party system, I remember there was the George Bush and John Kerry election. Both were competing against each other but came from the same group, Skull and Bones. Fun fact.

 

[Just_A_Girl13]

Islamic economics does not believe that resources are limited and interests is forbidden (riba).

That sounds interesting. Excuse my ignorance (again), but is that the kind of economic system that is used in Islamic states?

Peace

 

[Futuwwa]

Islamic economics is largely a concept under development. Most Islamic countries have capitalist systems of some sort. Some are heavily state capitalist, with the state having established and owning large parts of the productive economy. Saudi Arabia and Iran are both examples of this.

 

[GuestFellow]

That sounds interesting. Excuse my ignorance (again), but is that the kind of economic system that is used in Islamic states?

Peace

Salaam,

Yes, this is the system that is supposed to be used. The current Muslim countries have not adopted the Islamic economic system.

http://monzer.kahf.com/papers/english/methodology_malaysia.pdf

^ You may find this interesting.

 

[Futuwwa]

At a debate at the mosque, a few brothers adhered to an absolutist no-interest stance. I replied that that's a valid position to take, but that if you do, I maintain that it follows from it that all capital income is haraam and a completely Communistic economy the only valid Islamic way.

Not that there's anything problematic about such a conclusion, mind you ;D

 

[Ramadhan]

At a debate at the mosque, a few brothers adhered to an absolutist no-interest stance. I replied that that's a valid position to take, but that if you do, I maintain that it follows from it that all capital income is haraam and a completely Communistic economy the only valid Islamic way.

Actually Islamic economic and financial system take the best of capitalistic and comunnist system and eliminate their bad effects/excesses.

Islamic economic/financial system promotes trade, financial and capital cooperation, profit sharing, flat income and wealth tax, free-interests, philantrophy, etc.

 

[Who Am I?]

Economics is all about what is incentivized. If the laws are rigged in such a way that it is attractive to borrow and spend, that is what people will do. Not all, but enough to affect the whole society.

I think highly of capitalism in the sense of free markets, but in the USA we have corporatism, consumerism, and 'crony capitalism'. We're pretty far from anything close to laissez faire capitalism.

I like Canada's economic policies better: They instituted spending reform (new government spending must be balanced by cuts elsewhere to pay for it) and are sitting pretty now compated to the USA. They did lots of other stuff differently too, but that one stands out as radically different from the economic course my country is on. They also are not known for throwing theirmilitary weight around, something I wish we weren't known for as well.

Our government doesn't seem to understand the concept of cutting spending to save money. Instead, they want to raise taxes to make up for the loss in revenue.

A big reason why the US economy is in the shape it is in is because of credit. People borrowing money to buy things and not paying for them, and then defaulting on their loans. The consumer credit economy really took off after World War 2 and it has now caught up to us as a nation.

I was just talking about this last week with a brother at the masjid. The USA is a decaying empire, partly because of our economic policies and partly because of spreading our military might too thin around the world. We are witnessing the last days of our house, I think...