Brother Sidqi is nearly 100% right but he stated:-
“Capitalism encourages rewards for the hard working entrepreneurs and so far has proved to be best system we have. Socialism is a proven failure system, since its another name of corruption. Russia has collapsed, China has inducted capitalism in their financial system, Eastern Europe, East Berlin, North Korea have all failed in any financial achievements as is evident from history.
Therefore, it is only capitalism, which can recover from the bottom and not monarchies or socialism. “
My understanding of capitalism is that it is also a failed system since it encourages wealth by way of greed; accumulation of wealth in the hands of the have, with very little going to the have nots (or more correctly, those who are denied their right to obtain wealth through education or hard word). It is capitalisms exploitation by the 1% of the 99%, that has the mirage of success, but when you draw near to it, everything is not as it seems. A “boom and bust” economic system; financial institutions “gambling” on the future share price of the stock market; economies based on how much we can spend, with no regard for the next generation or the dwindling resources of the earth, etc. Or to put it another way, generating MONEY FROM NOTHING, where someone has to eventually pay (usually me!)
Brother Sidqi is quite correct that we should all look in the mirror before looking at others (look at the log in one’s own eye before criticising the speck in another’s), but capitalism will go the way of communism, socialism, or Maoism. The facade of success will crumble away in a period of time that Allah has established for all false systems; years, decades, centuries, millennia, Allah knows best ( to coin a phrase from the “Alims”, who pass the buck when giving an answer!!!).
The answer? A system where all the resources are available for everyone, with everyone contributing and doing their fair share of the work; help for the needy and those who have lost everything through no fault of their own, help with housing, education, health (USA, Pakistan etc have inadequate health care for the majority of their citizens; the former can afford it but chooses not to, the latter can afford it but does not care). Now, where have I heard about this practical system?:-
2:83 (God never promised unconditional favours to any nation, the Children of Israel being no exception.) And remember when We took a Covenant from the Children of Israel,
“Serve none but God
And be generous to your parents
And to family and relatives
And to orphans, widows, and those left without any means of support to make progress in the society
And to those who have suffered loss of income, the disabled, the needy, and the poor
And speak to people kindly
And treat them nicely
And establish Salaat
And set up the Just Economic System of Zakaat.”
Then, after that, you slid back, except a few of you. And you turn away from these Commandments even now.
[Salaat = To follow closely, like a runners-up (Musalli) follows the winning horse (Saabiq) = Follow God’s Commands closely. Aqimussallat = Establish the System that facilitates the following of Divine Commands. 2:3. Zakaat = Divinely ordained Economic Order in which people work according to their capacity and get compensated according to their needs. It is the System in which all members of the society flourish and, with their basic needs having been met, they are able to rise up on the ladder of self-actualization. The cornerstone of this Economic Order: The God-given natural resources and wealth are the common property of all, and every individual willfully leaves for the welfare of others whatever is over and above his needs. The Central Authority will be responsible for administering and maintaining the Just Economic Order of Zakaat. 2:219, 22:41, 27:12, 53:39]
Unfortunately, under the influence of fabricated Hadith, most commentators of the Qur’an confuse Zakaat with Sadaqaat. The latter means voluntary charity. See verse 9:60. It describes eight categories of the recipients of charity and not of Zakaat. With the solitary exception of Allama G.A. Parwez, to my knowledge, all commentators fail to notice the word Sadaqaat and somehow ‘misread’ the word Zakaat which is not there in that verse. So powerful is the influence of blind following! The current 2.5% giving of one's wealth and the complex and contradictory details of Fiqh associated with it find no Authority in the Qur’an. One example is the flagrant disparity between the compulsory 'charity or poor-due' to be paid by a rich man who possesses gold versus a poor man who possesses some silver. The poor will pay charity on less than one tenth of what the wealthy has! Ihsan = An act of balance = Restoring symmetry and beauty = Social and individual equity = Selfless service = An act of equity. Yateem = Orphan = Who is left alone in the society = Lonely = Without immediate family = Helpless = Derivatively, a widow. Miskeen = The needy poor = One with no means to earn livelihood = The disabled = One whose life has stalled for any reason = Jobless = Truly bankrupt of finances = One whose running business has stalled. 17:23, 29:8, 46:15, 4:36, 6:151, 2:177, 2:215, 17:26]
A Zakat based system, not a capitalist one; keeping the wealth circulating amongst the majority (all) and not the 1%. The Zakat is given to the people to use, not put in vaults (Fort Knox, Bank of England) and is 100% based on trade with physical goods, not numbers in a computer.