The Economy ~ Islamic Education

The word economy ( Iqtisaad) is derived from an old Greek term, which means the planning of home affairs, such that its active members associate in producing the commodities and performing the services, and all of its members share in enjoying what they possess. Through time, people extended the meaning   of home until it meant the community that is governed by one State. It is not intended to use the word economy (Iqtisaad) in its linguistic meaning, which is saving, or to mean funds. What is meant is the technical meaning of the word i.e. the management of funds, either by its increase, and securing of its production, which is discussed in economic science; or by the manner of its distribution, which is discussed in the economic system.

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Introduction to Economic System Part 4 ~ Islamic Education

The partial abolition of ownership in Socialism is a limitation of ownership by quantity, rather than by the ways and means of ownership. It prevents ownership of some properties, which by their nature and by the nature of their origin should be individually owned. Socialism either limits ownership in magnitude, such as limiting ownership of land up to a certain area, or it limits ownership of certain properties such as the means of production. Individuals could own many of these properties, by their nature. Ownership restrictions of this type of property restricts activity whether the restriction was pre-specified by the law, such as preventing inheritance, ownership of mines, railways, or factories; or if it were left to the State to decide, on a case by case basis, to prevent possession wherever public interest requires it to do so. All this is restriction of the activity of individuals, for individuals can own these properties by their very nature.

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Introduction to Economic System PART 3 ~ Islamic Education

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After this, Karl Marx used Ricardo's theory of value in Capitalism as a weapon to attack the concept of private property and Capitalism as a whole. He said that the only source of value is the work spent in a commodity's production, and that the Capitalist financier buys the energy of a worker with a wage that does not exceed the limit necessary to keep him alive and able to continue working. The financier then exploits the energy of the worker by making him produce commodities, whose value greatly exceed that which is paid to the worker. Karl Marx called the difference between what the worker produces and what he is actually paid, the 'surplus value'. He determined that this value represents what the landlords and the business people usurp from the worker's rights, in the name of revenue, profit or rate of return on capital, a matter that he did not acknowledge as valid.

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Introduction to Economic System PART 2 ~ Islamic Education

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The country could be rich in natural  resources, as in the case of Iraq and Saudi Arabia, but the basic needs of most of their citizens are not satisfied completely. Therefore, the increase of production by itself, does not solve the basic problem which must be treated first and foremost, which is the complete satisfaction of the basic needs of each and every individual, and following that enabling them to satisfy their luxuries.

Therefore, the poverty and deprivation required to    be treated is the non-satisfaction of the basic needs of man as a human being (i.e. food, shelter and clothing), not the increasing luxuries resulting from urban progress. Hence, the problem to be treated is the poverty and deprivation of every individual in the society, not the poverty and deprivation of the country measured as a whole.

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Introduction to Economic System PART 1 ~ Islamic Education

Introduction to Economic System

Thoughts, in any nation, are the greatest fortune the nation gains in its existence if the nation is newly born; and they are the greatest gift that any generation can receive from the preceding

generation, provided the nation is deep-rooted in the enlightened thought.

With regard to material wealth, scientific discoveries, industrial inventions and the like, all of these are of much lower importance than thoughts. In fact, to gain such matters depends on the thoughts, and preservation of these matters depends on the thoughts as well.

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