2. Capitalism: An exploitative System Let us observe some important stats of the beacon of Capitalist State The United States of America
3. In America: In America: 37 million people live below the official poverty line—12.6 percent of the total population At least 2.3 million people experience homelessness at some point each year, including nearly 1 million children The richest among them has more wealth than the bottom 45 percent of the households combined
7. Net worth and financial wealth distribution in the U.S. in 2007
8.
9. Percentage of wealth held by the Top 10% of the adult population in various Western countries Concentration of Wealth in the West Country wealth owned by top 10% Switzerland 71.3% United States 69.8% Denmark 65.0% France 61.0% Sweden 58.6% UK 56.0% Canada 53.0% Norway 50.5% Germany 44.4% Finland 42.3%
10. Where is the world headed!!!!! An analysis of the trend of the widening gap between the rich and the poor countries Year Poor: Rich ratio 1820 3:1 1913 11:1 1950 35:1 1973 44:1 1992 72:1
11. System not Resources Pakistan's misery due to the rotten Capitalist system not because of lack of resources!
69. Decision making in Autocracy (dictatorship of an individual) Decision making Legislative Mubah (General issues) Mubah (needing expertise) Economic Ruling Social Judicial Education Policy Foreign Policy The ruler The ruler The ruler
70. Decision making in Democracy (dictatorship of an elite group) Decision making Legislative Mubah (General issues) Mubah (needing expertise) Economic Ruling Social Judicial Education Policy Foreign Policy Elite Group Elite Group Elite Group
71. Decision making in Khilafah Decision making Legislative Mubah (General issues) Mubah (needing expertise) Economic Ruling Social Judicial Education Policy Foreign Policy Khaleefah is final authority after discussing with experts People Through their representatives decide based on Majority (if Khaleefah asks them) Allah’s Ahkam Are implemented derived from the sources, Qur’an, Sunnah, Ijma us Sahaba Qiyas
72.
Editor's Notes
(to the nearest meaning)
http://www.lcurve.org/ If we divided the income of the US into thirds, we find that the top ten percent of the population gets a third, the next thirty percent gets another third, and the bottom sixty percent get the last third. If we divide the wealth of the US into thirds, we find that the top one percent own a third, the next nine percent own another third, and the bottom ninety percent claim the rest. (Actually, these percentages, true a decade ago, are now out of date. The top one percent are now estimated to own between forty and fifty percent of the nation's wealth, more than the combined wealth of the bottom 95%.)
http://www.lcurve.org/ If we divided the income of the US into thirds, we find that the top ten percent of the population gets a third, the next thirty percent gets another third, and the bottom sixty percent get the last third. If we divide the wealth of the US into thirds, we find that the top one percent own a third, the next nine percent own another third, and the bottom ninety percent claim the rest. (Actually, these percentages, true a decade ago, are now out of date. The top one percent are now estimated to own between forty and fifty percent of the nation's wealth, more than the combined wealth of the bottom 95%.)
The Economic System versus Economic Science The economic system is that which determines how to distribute the wealth, how to possess it, and how to spend or dispose of it. This determination follows a particular viewpoint in life, or ideology. Therefore, the economic system in Islam is different from that of Socialism/Communism and that of Capitalism, since each of these systems follows its own ideological viewpoint of life. Economic science discusses production, its improvement, invention and improvement of its means. Economic science, as is the case with other sciences, is universal to all nations and is not associated with a particular ideology. So for example, the view towards ownership in Capitalism differs from that of Socialism/Communism, and differs from that in Islam. However, discussing the improvement of production is a technical issue, which is purely scientific, and the same for all people, no matter what their viewpoint about life is. This merger between the study of the needs and the means of their satisfaction i.e. between producing the economic material and the manner of its distribution, and bringing them as one issue and one subject, is an error, which resulted in mixing and interference in the capitalists studies of - -------------------------------------------- The resources available on earth are sufficient to secure the basic needs (food, clothing, shelter etc.) of fifty billion human beings. Such a misunderstanding has concealed the reality that starvation, poverty, and economic backwardness, result from misdistribution exasperated by man-made laws and systems
Out of 16,000 industrial units only 3000 units pay taxes Income tax mostly from employees Agricultural sector : 40% of the GDP but only 1% tax Sales tax contributes 37% Kharaj and Ushr and Zakt not taken properly
Taxes are haraam due to the following evidences. The messenger of Allah (saw) said: "Any deed is rejected, if it is done without our order" (Narrated by Muslim, Ahmed) These taxes have no evidence from Shara’ . 2) The messenger of Allah (saw) said: "Anyone who collects taxes will not enter heaven" [Narrated by Ahmad, Abu Daoud and Al-Hakem]. That includes customs and taxes on sale and purchase. And (saw) said: "He who collects taxes is in hell" [Narrated by Ahmad], 3) As these taxes become part of the price so they are haraam. The evidence is the saying of the messenger of Allah (saw): "Anyone who increases the price of anything for the Muslims, then Allah Al-Mighty has the right to put him in hell on doomsday." (Narrated by Ahmad) 4) Besides, the evidences like; "All the Muslim is haram (not allowed) on the Muslim, his money, his honor and his blood ." [Narrated by Abu Daoud and Ibn Majah] And said: "The money of a Muslim person does not become legal, unless taken with his consent" , And said: "If you find a person who takes money without right, kill him." ( Musnad Ahmed) The government loots the property of Muslims in the shape of sales tax and surcharge without a right. Moreover these taxes are imposed as conditionality of Kuffar and grant authority to them over the Muslim. These acceptance of these IMF and World Bank conditions are haraam because in the Qur’an Allah (SWT) said; " And never will Allah grant to the unbelievers a way (to triumph) over the believers." [An-Nisa': 141]
“ What Allah has bestowed on His Messenger (and taken away) from the people of the townships, belongs to Allah and His Messenger, to the kindred, orphans, the needy and the wayfarer; in order that it may not remain a circuit between the wealthy among you... ” [Al-Hashr: 7] These verses have been used by ‘Umar to support his argument about not dividing the lands of Iraq, Ash-Sham and Egypt among the fighters, as requested by Bilal, Abdul Rahman and Al-Zubayr. Ummar (ra) told Ansar during his consultation with them: “I have decided to make the land and their trees an inalienable property, and to impose on them the Kharaj and on their owners the Jizya , these would be a Fai ’ to the Muslims, be it the fighters, their children and those who come after them…” Umar then backed his argument with evidence from the Qur’an. He recited the verses of Al-Fai ’ until he reached Allah’s (SWT) saying: “ And those who came after them ” [Al- Hashr: 10]. Sahabah accepted his understanding and thus did Ijma on it. Tariq Ibnu Shihab reported: ‘‘Umar b. Al-Khattab wrote to me about the tribe of Dahqana in Nahr Al-Malik, who had embraced Islam. He wrote: “Give the tribe her land so that they pay the Kharaj of that land.” This clearly indicates that ‘Umar b. Al-Khattab did not waiver the Kharaj imposed on the land conquered by force and whose owners embraced Islam, and he ordered them to continue to pay the Kharaj of that land after becoming Muslims.
Revival of an agricultural land is accomplished by encompassing the land to seclude it, distinguishing it from other lands, transferring water to it or digging a well in it, if it is a dry land where crops depend upon irrigation. It could be by blocking the water from it and drying it if the land is submerged with water or by ploughing the land, flushing the highland and inundating the lowland. By completing the revival, ownership is completed and the land is officialy transferred to the peasant. All this must happen before the end of three years after the allocation. This came in the narration narrated by Tawus from ‘Umar ibn Al-Khattab who said: “The muhtajir (who shield a land) has no right after three.” Ownership of this land is not accomplished except by reviving it after its allocation. While the allocation gives the allottee a legal right in it, ownership is not completed except after achieving its cultivation and this must happen before the end of three years after the allocation. This came in the narration narrated by Tawus from ‘Umar ibn Al-Khattab who said: “The muhtajir (who shield a land) has no right after three.”
Revival of an agricultural land is accomplished by encompassing the land to seclude it, distinguishing it from other lands, transferring water to it or digging a well in it, if it is a dry land where crops depend upon irrigation. It could be by blocking the water from it and drying it if the land is submerged with water or by ploughing the land, flushing the highland and inundating the lowland. By completing the revival, ownership is completed and the land is officialy transferred to the peasant. All this must happen before the end of three years after the allocation. This came in the narration narrated by Tawus from ‘Umar ibn Al-Khattab who said: “The muhtajir (who shield a land) has no right after three.” Ownership of this land is not accomplished except by reviving it after its allocation. While the allocation gives the allottee a legal right in it, ownership is not completed except after achieving its cultivation and this must happen before the end of three years after the allocation. This came in the narration narrated by Tawus from ‘Umar ibn Al-Khattab who said: “The muhtajir (who shield a land) has no right after three.”
Revival of an agricultural land is accomplished by encompassing the land to seclude it, distinguishing it from other lands, transferring water to it or digging a well in it, if it is a dry land where crops depend upon irrigation. It could be by blocking the water from it and drying it if the land is submerged with water or by ploughing the land, flushing the highland and inundating the lowland. By completing the revival, ownership is completed and the land is officialy transferred to the peasant. All this must happen before the end of three years after the allocation. This came in the narration narrated by Tawus from ‘Umar ibn Al-Khattab who said: “The muhtajir (who shield a land) has no right after three.” Ownership of this land is not accomplished except by reviving it after its allocation. While the allocation gives the allottee a legal right in it, ownership is not completed except after achieving its cultivation and this must happen before the end of three years after the allocation. This came in the narration narrated by Tawus from ‘Umar ibn Al-Khattab who said: “The muhtajir (who shield a land) has no right after three.”
------------ He said: ‘Whosoever revives a land that belongs to nobody then he is more deserving of it’. Bukhari reported the same Hadith with the words: ‘Whosoever inhabits a land that belongs to nobody he is more deserving of it’. ---------------- From ‘Umar b. al-Khattab from the Messenger of Allah he said: “Whoever revives dead land then it is for him.” And from ‘Amru b. Shu’aib from his father from his grandfather from the Prophet , he said: “Whoever cultivates dead land then it is for him.” 22 23 24 25 such as Iraq, Ash-Sham and Egypt-then it has to be examined. If the allocation is from cultivated land, whether Kharaj has ever been imposed upon it or not, then the allottee will only possess its benefit not its neck as its neck is owned by Muslims. The Khalifah may grant ownership of the -------------
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Interest rates form the backbone of the capitalist system in many ways. It is used as a tool to regulate economic growth and monetary supply by acting as an 'incentive' for those who have surplus money to save/hoard
Check Al-amwal for Hard Currecny
Interest rates form the backbone of the capitalist system in many ways. It is used as a tool to regulate economic growth and monetary supply by acting as an 'incentive' for those who have surplus money to save/hoard
Check Al-amwal for Hard Currecny
Interest rates form the backbone of the capitalist system in many ways. It is used as a tool to regulate economic growth and monetary supply by acting as an 'incentive' for those who have surplus money to save/hoard
Check Al-amwal for Hard Currecny
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Furthermore, taking foreign aids by the state is haram in Islam, because though they are basically allowed (mubah), they become haram when they bring harm to the state (its authority, its economic or its security). This is based on the Shari’ah principle which states that if any particular thing allowed (mubah) leads to harm then this individual action becomes haram while the thing continues to remain mubah. Accordingly taking the foreign aid is haram. Besides that these loans are only taken with interest (usury), and zina usury is haram then taking the foreign loan is haram. Thus in view of these dangers which result from taking the foreign loans and becomes usury (interest) is haram, then it is not allowed in Islam to take foreign loans, and it is proper not to fund the projects, even the production ones, through the foreign loans. They have rather to be funded independently by the country itself. Hizb ut-Tahrir ------------------------------ As for borrowing from foreign countries or international financial institutions, it is not allowed by Shar’a because such loans would not be except with bank interest or with imposed conditions. Bank interest is prohibited by Shar’a , whether from individuals or countries, as the imposition of conditions gives the lending countries and institutions control over Muslims and makes the will of Muslims and their disposition subject to the will of the lending countries and institutions, a matter which is prohibited by Shar’a . The international loans were among the most dangerous afflictions and among the causes for imposing the authority of the Kuffar upon the Islamic lands; and how often has the Ummah suffered from the calamities of these loans? Therefore, the Khalifah is not allowed to resort to international loans to cover the expenditure on these areas.
Islam prohibited pricing absolutely, due to what Imam Ahmad narrated from Anas who said: “Prices increased at the time of the Messenger of Allah , so they said, O Messenger of Allah, we wish would you price (fix the prices). He said: “Indeed Allah is the Creator, the holder (Qabidh) , the Open-handed (Basit) , the Provider (Raziq) , the Pricer (who fixes prices); and I wish I will meet Allah and nobody demands (complains) of me for unjust act I did against him, neither in blood or property.” Also Abu Dawud narrated from Abu Huraira, he said, “A man came and said, O Messenger of Allah, fix prices. He said: “Rather Allah reduces and increases.”
Revival of an agricultural land is accomplished by encompassing the land to seclude it, distinguishing it from other lands, transferring water to it or digging a well in it, if it is a dry land where crops depend upon irrigation. It could be by blocking the water from it and drying it if the land is submerged with water or by ploughing the land, flushing the highland and inundating the lowland. By completing the revival, ownership is completed and the land is officialy transferred to the peasant. All this must happen before the end of three years after the allocation. This came in the narration narrated by Tawus from ‘Umar ibn Al-Khattab who said: “The muhtajir (who shield a land) has no right after three.” Ownership of this land is not accomplished except by reviving it after its allocation. While the allocation gives the allottee a legal right in it, ownership is not completed except after achieving its cultivation and this must happen before the end of three years after the allocation. This came in the narration narrated by Tawus from ‘Umar ibn Al-Khattab who said: “The muhtajir (who shield a land) has no right after three.”
Protecting some Public Property Assets (Hima) Protecting some of the public property assets of petroleum, gas and minerals, such as when the Khalifah designates specific petroleum and gas wells or specific mineral mines like, for example, phosphate, gold and copper mines, where he protects them and designates their revenues for the expenditure on the mentioned areas, is allowed by Shar’a . It is a useful method to raise the necessary revenues to spend in these areas. It is permitted for the Khalifah to do this based on the following: 1. The Messenger of Allah and the Khulafa’a after him shielded specific places which were part of the public property. From Ibn ‘Abbas from Sa’ab b. Juthama, he said: “The Messenger of Allah said: ‘No protection (Hima) except for Allah and His Messenger’”. That is, no protecting except for the State similar to what Allah and His Messenger shielded for Jihad , the poor, the needy and the interests of Muslims generally. This is not similar to what they protected in the days of Ignorance ( Jahiliyyah ) where the noble alone among them protected for himself. From Nafi’ from Ibn ‘Umar: “The Prophet protected An-Naqi’i (this was a famous place in Madinah) for the horses of the Muslims.” Similarly Abu Bakr protected Al-Rabatha for the camels of Sadaqat and appointed his servant Abu Salama, over it. ‘Umar also protected Al-Sharaf in Al-Rabatha and appointed his servant, who was called Hani. This protection was of places of pasture and grazing and they were of the public properties. Al-Naqi’i which was protected by the Messenger of Allah was outside Madinah, and water used to stagnate in it and pasture would grow when it dried up i.e. it was owned as public property by all Muslims. Abu ‘Ubaid, in explaining this, after mentioning the Hadith “No protecting except for Allah and His Messenger” said: “The interpretation of the protection which is prohibited in our view (and Allah knows best) is that you shield the things which the Messenger of Allah made all the people partners in, which is water, pasture and fire.” The Messenger of Allah , Abu Bakr and ‘Umar designated places and protected them for the horses which were,used in the way of Allah, the camels and livestock of Sadaqat , and they used to prevent others from grazing in them. From ‘Amir b. ‘Abdullah b. Az-Zubair (RA), he said: “A bedouin came to ‘Umar ibn Al-Khattab (RA) and said: ‘O Amir al-Mu’mineen , our land that we fought upon in (the days of) Jahiliyyahh and upon which we became Muslims in (the days of) Islam, why did you protect it?’ ‘Umar bowed (his head), twisted and breathed into his moustache (whenever a matter troubled him, ‘Umar would twist his moustache and breathe into it) and when the bedouin saw how he reacted, he repeated his question to him. ‘Umar replied: ‘Property is the property of Allah, and the servants are the servants of Allah. By Allah, were it not for what I carry upon it in the way of Allah, I would not protect a handspan by handspan.’” And from Aslam, he said: “I heard ‘Umar b. al-Khattab as he was speaking to Hani when he appointed him over the Hima of Al-Rabatha: ‘O Hani, withhold your hand (i.e. restrict yourself) from the people and fear the Dua’a of the oppressed for it is accepted. Allow to enter the owner(s) of camel and sheep, but turn away the grazing livestock of ibn ‘Affan and ibn ‘Awf for if the livestock of these two die they will return to palm trees and palms. But if the livestock of this miserable man die he will come shouting: ‘O Amir al-Mu’mineen, has the pasture become of little importance to me or has gold and money suffered loss?’ For verily it is their land upon which they fought in (the days of) Jahiliyyah and became Muslims in (the days of) Islam, and their view is that we are oppressing them. Were it not for the livestock upon which things are borne in the way of Allah, I would never have protected anything from the people of their land.’ These Ahadith and other reports denote clearly that the State can shield from the public properties what it needs for Jihad and what relates to it, and for any other interest of the Muslims, however much it may be. ---------------------- The amount taken from Zimmi and Harbi merchants is delegated to the Khalifah . He may increase or decrease it according to the peace agreements either already contracted or to be contracted. He may also act reciprocally to how Muslim merchants are treated in accordance to the interest of the Muslims and the conveying of the Da’wah . Abdullah bin ‘Umar narrated that “‘ Umar used to take half-tithe (5%) from oil and wheat so as to increase their load into Madinah and took the tithe from vegetables (peas, beans, lentils).” ---------------------------- Taxes: Taxes are collected from the Muslims who have wealth surplus to the satisfaction of their basic needs and luxuries. Nothing is taken from those who have no surplus wealth. This is due to the saying of the Prophet : “The best Sadaqah is that given out of richness.” The richness here means that which the person can afford after satisfying his needs. It was narrated from Jabir that the Messenger of Allah said: “Start with yourself when giving Sadaqah. If there remains any excess, then to your family. If there remains any excess, then to your relatives. If there remains any excess, then do like this, give those in front of you and those to your right and those to your left.” He deferred the obligation to spend upon anyone else till after spending upon oneself. Similar to this are taxes as they are like financial maintenance and like Sadaqah .
