What are the Economic and Moral Criticism of Capitalism

[JustCause]

Sophist, since you proposed the questions surely you must have some answers to your own questions and as such, it would only be fair if you could share them with us. I have to say none of what I have read so far convinced me of either way! I must also confess I know nothing of economic matters and any opinion I might have is just what I gathered from papers.

 

However, if I am forced to choose a system I would choose the European form of capitalism—this is at least capitalism with a human face. I believe (this believe is not based on any concrete evidence) but nonetheless I believe that European capitalism to be the best system we have and I do not see another alternative that could work in this world. Thus, I would have rephrased your question and asked what form of capitalism comes close to being a fair system or What are the Economic and Moral Criticism of Different Capitalist Systems.

 

//----side issue!

If anyone here seems to know, what is debt or even better, what is money at a fundamental level, would they care to share it with me and other interested parties? I am asking this question because, recently someone told me; when you borrow money from the bank the money they are lending you do not really exist! She went on to say the bank is lending you money against a profit, which they might make in the future, say 20 years from now. This confused me and made question the whole economic system at a fundamental level what is money and does it has to be conserved or can it be created from nothing?

 

When a country such as USA when they are in debt, who are they in debt to, when they happen to be the richest country in the world? The only think I could think of after learning the above fact, maybe they borrowed against their future earnings! Hypothetically speaking, what happens if the US refuses to pay their debt, would the world economy collapse?

 

Q

 

PS. Sophist I am still waiting your response on why you think scientific experiments are not good indicators of the truth!

[NGONGE]

“If anyone here seems to know, what is debt or even better, what is money at a fundamental level, would they care to share it with me and other interested parties? I am asking this question because, recently someone told me; when you borrow money from the bank the money they are lending you do not really exist! She went on to say the bank is lending you money against a profit, which they might make in the future, say 20 years from now. This confused me and made question the whole economic system at a fundamental level what is money and does it has to be conserved or can it be created from nothing?

 

When a country such as USA when they are in debt, who are they in debt to, when they happen to be the richest country in the world? The only think I could think of after learning the above fact, maybe they borrowed against their future earnings! Hypothetically speaking, what happens if the US refuses to pay their debt, would the world economy collapse?”

The popular definition of money is that it’s a medium of exchange for goods and services. The usual and accepted form of money is the notes and coins we grew accustomed to, however, money can be a piece of paper, a stick or anything that buyers and sellers in a certain market would agree on. You ask if money can be created from nothing! Money, like I already said, is only a tool for exchanging goods and services between different parties, it does not have to have any inherent value. Banks simply (and I’m being really simplistic here) take your “money” and invest it in different areas – this could be the buying of assets, shares or the exchange of goods. When they make a profit, you receive interest for allowing them to trade with your “money”. Similarly, when Banks lend you money, you incur interest for borrowing their money. The money itself can be created from nothing but for it to make any sense it would have to be linked to some form of goods or services. The money (in the form of coins and notes) is created by the government. If a government starts printing money just for the sake of printing it, it will only fuel inflation and harm its economy.

 

Your second point about the USA and its debt is slightly more complicated. The United States is the richest country in the world because its privately owned businesses are the most successful in the world. The country relies on Taxes it takes from individuals and corporations (plus other receipts). At times, these are not enough to sustain the public sector (police, hospitals, education, etc). The country has to then borrow money from private institutions and others and hope the following year’s receipts will cover for such a deficit in their budgets (which is why they increase or decrease Taxes each year). This is what’s called the national debt. The United States is not different to any other country here. Should the United States refuse to pay its debts it’s possible that the world economy might collapse but it’s more than certain that the United States economy will collapse!

 

 

I hope this is what you were asking about and that I understood your question clearly. If not, sorry saaxib.

[Vanquish_V12]

Sophist i wonder if you posted this article after watching the corporation.

 

I recommanded to all of you.

 

As a muslim, of course we can not let ourselves depend on economic trade theories based on paradigms that were established by people who think our ancestors were ape-like. I mean it is absurd to deny a human being the right to own, which is a God given right, so with that in mind there goes communist based market theories. Capitalism, has the fundamental flow in that it makes the persuit of money in it of itself the GOAL, n should be acquired at any cost n if thats not shirk i dont know what is.

 

The sharia does provide a framework in which trading system is drawn upon, afterall muslims were well known for their expertise in free trade and commerce during the sahab and tabicin etc...

[Sophist]

Vanquish that is beautiful car! I love that.

[Mutakalim]

"Democracy is a form of government that substitutes election by the incompetent many for appointment by the corrupt few." (pace Bernard Shaw) I would fain rejoice with jubilation should the world become ideal , utopian states whose modus operandi is the democracy of the schools not the democracy of the polls (pace Plato)

 

With Salaams

 

PK