Current Economic Conditions An Islamic Perspective

Introduction Quran as the guidance This is a perfect Book; there is no doubt in it; it is guidance for the righteous Who believe in the unseen and observe prayer and spend out of what We have provided for them

Earning to one’s Potential

Individual Responsibility

Economic Systems Capitalism demands a free flow of capital and in its most basic definition allows for the survival of the fittest or the most successful. Those who fail are left behind and those who are successful gain. The current advance of the Western society is largely in result of adopting Capitalism. Communism acts almost opposite to Capitalism. Individual responsibility is negated and the community is given the responsibility for the success. If the community as a whole gains, everyone gains. If the community does not function everyone loses. Russia adopted this after their revolution from the Czar and have recently shifted towards Capitalism. Socialism is not too much of an economic system and talks more about the responsibility of the government towards its people. It bridges the gap between strict Capitalism where everyone is on their own and Communism where no individual can leap ahead of the community. Socialism allows for welfare for the poor and allows for the weak elements of a society to still survive. Many countries of Europe though Capitalist, have a socialist way of governing.

Islamic System Balance between earning and charity Give to poor Tax on savings No Interest Encourage personal Responsibility

Interest is Wrong

In the Words of Mirza Tahir Ahmad (RA) Why does Islam forbid the use of interest? It is very important in Islam not to hoard money but to keep it working. How does Islam view placing money on the capitalist stock market system?

In the Words of Present Khalifa (ABA) The ‘credit crunch’ ought to be taken as a warning that the western system of interest based capitalism was wholly incompatible with a fair and just society. He said that though interest could appear to increase a person’s capital, in the long term this was never true

Conclusion Pursuit of happiness is encouraged but with legal means Stretching the dollar to keep up with Joneses is not right Living within one’s means makes sense Have-nots of a society are everyone’s responsibility