Capitalism affords economic freedom, consumer choice, and economic growth. Socialism, which is an economy controlled by the state and planned by a central planning authority, provides for a greater social welfare and decreases business fluctuations.
Islamic economics aim for moral development, promoting unity, social justice, fair and equitable distribution, circulation of wealth and providing basic human needs. In an interest-based economy, there is no share kept aside for the poor. The rich amass all the wealth while the poor are left with nothing.
In a mixed economic system, free markets co-exist with government intervention, and private enterprises co-exist with public enterprises. The advantages of a mixed economy include efficient production and allocation of resources, as well as improvement of social welfare.
Personal ownership is not recognized in the socialist economy, but state ownership is recognized in this system. On the contrary, Justice and balanced ownership are recognized and regulated in the Islamic economy, but the right of the state and society are in the person’s property.
The purpose of an economic system, at its core, is to preserve people’s way of life by figuring out the best ways to distribute goods and services based on skills and available resources.
In conclusion, Islamic economics emphasizes a holistic view that considers not only individual interests but also the well-being of society and adherence to divine norms . In contrast, Western economics often prioritizes profit and individual desires, leading to a focus on self-interest and personal gain.
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