CAPITALIST SYSTEM• Emergence – Capital is needed to build factories, purchase machines,
raw materials and pay labor – Individuals invest in hopes of profit (future return) – Based on concepts of
free enterprise and competition – Needs and desires of consumers (purchasers) met by quality goods at
lowest price.
Transcript of "Islam and Other Economic System"
1. 3. CAPITALIST SYSTEM• Emergence – Capital is needed to build factories, purchase
machines, raw materials and pay labor – Individuals invest in hopes of profit (future
return) – Based on concepts of free enterprise and competition – Needs and desires of
consumers (purchasers) met by quality goods at lowest price.
2. 4. • The business owner or capitalist get richer while the workers do all the hard work.•
The capitalists get more power to serve their own interests.
3. 5. Private ownership Market Free economy enterprise BASIC PRINCIPLES Competitive
Profit motive
4. 6. Limited role for Free trade government Self-interest Competition CAPITALIST
IDEOLOGY
5. 7. • FLAWS OF CAPITALISM – No bindings / restrictions while maximizing profits. –
No moral value limitations – Monopolies are created that exploit the society as a whole –
Government and industrialists join hand for mutual benefit and make laws that exploit
common people – Imbalance in the distribution of income due to which concentration of
wealth take place
6. 8. SOCIALISM SYSTEM• Emergence – Socialism provides a different conception of
individual responsibility and government – A variation on socialism argue that socialism
and democracy can work – Democratic governments should promote economic – as well
as political – freedom and equality
7. 9. Egalitarianism / Equality BASICPRINCIPLES Moralism
8. 10. • FLAWS OF SOCIALISM – Individuals lose incentive to work – Government
becomes a dictatorship – Government places needs of the state over the individuals –
Government central planning the economy – Government must be in constant state of
emergency to instigate production
9. 11. COMMUNISM SYSTEM• A government where people shared work fairly and were
paid equally• Goal: to get rid of social classes and make everything fair for everyone
10. 12. • FLAWS OF COMMUNISM – Everything is distributed equally – Dictatorship is
the government when a group or one person has control over everyone – The rich get
richer, while the poor get poorer – People never achieved the goal
11. 13. ISLAMIC ECONOMICS SYSTEM• The humanitarian goal of achieving the well
being of all members of the human family• To raise the spiritual content of well being
and reduce all the symptoms of anomie• Islam accepts the right to private property and
maximize profit. But these right are not uncontrolled rather there are some prohibitions
12. 14. Islam focuses on the distribution of wealth not just The Gold & the production. All
basic Silver needs standard for guaranteed currency Islam neither believes in a free
