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Tuesday, December 27, 2011

Recession--- some reasons and Solution


We see that capitalims and communism tried to give the world two alternate ways to Economy but both failed utterly.Islamic Economical system gives a complete model of code not just for policy makers but for individuals as well.

We see the major reason for recession is
Interest based banking
High spending (that too on credit)
Greed (buy 2 get 1 concept…or more more)
Majority of people poor and rich getting richer & richer.
Major resources in the hands of few etc

 What Islam gives as alternate is
Banking on the basis of profit and loss sharing
Spending in the right way (neither become miser nor a spendthrift)
Concept of Zakath (2.5% yearly for money to flow from rich to poor)
It also encourages to give in the form of charity,soft loans etc so that underprivileged are not left alone.
Controlling Prices (like discouraging hoarding of  food etc)

Read the Holy Quran & Hadith Books like Bukhari and muslim etc to know more such rules.
Note:
For most of its 2,000 year history, Christianity not only frowned on capitalism, but banned it outright.
Exodus 22: 24-25, "If you lend money to one of your poor neighbors among my people, you shall not act like an extortioner toward him by demanding interest from him." This prohibition is repeated 22 times in the Old Testament. Proverbs 28:8 says, "He who increases his wealth by interest and overcharge amasses it for someone else who will bestow it on the poor." Psalm 15 says, "Yahweh, who can find a home in your tent, who can dwell on your holy mountain? Whoever lives blamelessly, who acts uprightly, who speaks the truth from the heart, ... who asks no interest on loans, who takes no bribe to harm the innocent. No one who so acts can ever be shaken."