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Distribution Between Islamic Economic System and Capitalis

Capitalism or Capital is an economic system in which trade, industry and means of


production are controlled by private owners with the aim of gaining advantage in the market
economy. Owners of capital in doing business trying to achieve maximum profits. With this
principle, the government can not intervene in the market for mutual benefit, but government
intervention is done on a large scale for personal interests.

This system has weaknesses, such as inequality and social inequality, arising disharmony,
profit maximization, materialistic, moral crisis and the exclusion of welfare.

With regard to the problem of distribution, the market economy system (capitalist) uses
the principle that the settlement of poverty within a country by increasing domestic production
and giving people the freedom to take as much production (wealth) as they produce for the state.
With the solving of domestic poverty, the individual poverty problem is also split because of
their attention to production that can break down their poverty problems. So the best solution to
solve community problems is to increase production.

Thus, the economy only focuses on providing tools to satisfy the needs of the community
on a macro basis by raising the level of production and raising national income, because with the
number of national income, then immediately there is distribution of income by giving freedom
of ownership and freedom of effort for all individuals of the society, so that each individual is
left free to gain a certain amount of wealth that he is capable of in accordance with the factors of
his production. The principle of distribution applied by the system of market economy
(capitalist) is ultimately impact on the reality that the real rulers are the capitalists (owners of
capital and conglomerates). Therefore, it is natural that if the policies issued by the government
are always in favor of the owners of capital or conglomerates and always sacrifice the interests of
the people, so there is an imbalance.

Finally, the poor will be marginalized and poorer. Poverty is regarded as a logical and
natural consequence - because it must be received (given) - from a competition. Even poverty is
not only regarded as a logical consequence of defeat in economic competition, but is also
convicted for the lazy and ignorant attitude of the poor so that it can not compete.

In the capitalist economic system that poverty can be solved by raising the level of
production and increasing national income is an unjustifiable theory and even poverty becomes
one of the products of the capitalistic economic system that creates an unjust pattern of wealth
distribution.
Distribution System in Islamic Economics: The Solution to Justice Distribution

Islamic economy is built on the basis of Islam, therefore it is an integral part of Islam. In
contrast to capitalist economics, Islamic economics is the study of human endeavor to allocate
and manage resources to achieve falah based on the principles and values of the Qur'an and as-
Sunnah.

Islam considers that material understanding is everything to life is a misconception,


because humans besides having a material dimension also have a non-material (spiritual)
dimension. In Islamic economics, the two dimensions (material and spiritual) are included, as
reflected in the value based summarized in four axioms as proposed by Naqvi (2003: 37), ie
unity / unity, equilibrium ), free will and responsibility.

With respect to the theory of distribution in the market economy system (capitalist) is
done by giving freedom of ownership and freedom of effort for all individuals of society, so that
every individual of the free society to gain wealth of a number that he is capable and in
accordance with the factors of production it has with no regard whether the distribution is fair
and evenly perceived by all individuals of society or only felt a few people only. The theory
applied by this market (capitalist) economic system including dzalim in the view of Islamic
economy because this theory has implications on the accumulation of wealth on a few parties
only. This is in contrast to the Islamic economic system, which protects the interests of every
citizen, both rich and poor by giving moral responsibility to the rich to pay attention to the poor.
The Islamic economic system requires that in the case of dissemination to be based on two joints,
namely freedom and justice.

Thus, the distribution system in the view of Islamic economics should be based on the
basic principles of Islamic economics, such as individual freedom, social security, the
prohibition of accumulating wealth and fair distribution of wealth.

Mechanism of Islamic economic distribution system can be divided into two (2) namely
economic mechanism and non-economic mechanism. Economic mechanisms include productive
economic activities, in the form of various development activities in the mu'amalah akad aka aka
aka aka, such as open opportunities for the causes of individual ownership and development of
property through investment, the prohibition of accumulating wealth, overcome the circulation
and concentration of wealth in a handful of classes, prohibitions of monopoly activities, and
various fraud and prohibitions on gambling, usury, corruption and bribery.

The non-economic mechanism is a mechanism not through productive economic activity


but through non-productive activities, such as grant, shodaqoh, zakat and inheritance. Non-
economic mechanisms are meant to complement the economic mechanisms, namely to overcome
the ill-equipped wealth distribution, if only relying on economic mechanism alone.
Non-economic mechanisms are needed, both due to natural and non-natural causes.
Natural causal factors, such as barren nature or natural disaster. All of this will lead to economic
inequality and impaired distribution of wealth to people who have the situation. Non-economic
mechanisms are also needed because of non-natural causes, such as the deviation of economic
mechanisms. The deviation of economic mechanisms, such as monopolies, distribution
aberrations, hoarding, etc. can lead to unequal distribution of wealth.

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