Socialism

[S. Jibreel Hussain]

Subscription to Keynesian economics (i.e. credit expansion and government spending for the advancement of the standard of living) is directly responsible for the gravity of the depression we're in right now.  There is no doubt that for the short term you can have an amazing life if you borrow like there's no tomorrow but the more you borrow, the more painful the time will be when you have to pay back.  The belief in the omnipotence of government is what sets up disastrous financial ruin.  The government can't just bail companies or other governments out.  All that does is shift debt from bail outee to the bail outor.  So unfortunately (evin grin) Europe is gonna suffer, Dubai is gonna suffer (and now Abu Dhabi as well), and yes the US is gonna suffer.  Blaming free markets for the depression is misplaced blame.  The free market is unforgiving towards irresponsible behavior.

Discussing socialism vs free markets with Ilyas yesterday reminded me of these interesting quotes from Ludwig von Mises one of the biggest names in the Austrian School of Economics on socialism.  Ilyas was saying that some sort of democratic socialist system where everyone follows austerity measures needs to be implemented.

Here are the quotes:

• Capitalism and socialism are two distinct patterns of social organization. Private control of the means of production and public control are contradictory notions and not merely contrary notions. There is no such thing as a mixed economy, a system that would stand midway between capitalism and socialism. 
• If one rejects laissez faire on account of mans fallibility and moral weakness, one must for the same reason also reject every kind of government action.
• Socialism and democracy are irreconcilable.
• That Socialism would be immediately practicable if an omnipotent and omniscient Deity were personally to descend to take in hand the government of human affairs is incontestable.
• Liberalism and capitalism address themselves to the cool, well-balanced mind. They proceed by strict logic, eliminating any appeal to the emotions. Socialism, on the contrary, works on the emotions, tries to violate logical considerations by rousing a sense of personal interest and to stifle the voice of reason by awakening primitive instincts.

Also, having a free market system isn't something that's impractical.  People just have to believe in it and not let their emotions get the best of them.  Governments will always push socialism and use scare tactics to get it.

Btw, if anyone has any literature or even major names on Muslim economic systems of the past, I would love to read it.  JAK.

[Ilyas Lahoz]

"Btw, if anyone has any literature..."

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-Ilyas Alexander Lahoz

[Ilyas Lahoz]

you all may also be interested in this website:

 

http://www.alghazalians.blogspot.com/

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-Ilyas Alexander Lahoz