The paper contrasts this self-centred economic model with moral philosophy. Egalitarian ethical theories which include Utilitarianism, Rawls’s theory of justice, Situation Ethics (Joseph Fletcher), and Kantian ethics (Categorical Imperative), all require that, as a necessary condition for morality, one must treat the welfare of others the same as or equally to one’s own welfare.
Capitalism is defined by the Cambridge dictionary as, ‘An economic and political system in which property, business, and industry are controlled by private owners rather than by the state, with the purpose of making a profit.’ Following this definition, not every country can be considered ‘capitalist’.
It is comforting to note that Pakistan economy has breached the level of $400 billion economy. Per capita income had also breached the level of $1,800. With decrease in interest rates and inflation, the economy may get breathing space. Decrease in interest rates has eased the fiscal burden which will provide space to contain fiscal deficit at 3.9% of GDP and maintain primary surplus at 2.4% of GDP.
The first role of money is to be a store of value- something that is expected to retain its value in a reasonably predictable way over time. Gold or silver that was mined hundreds of years ago would still be valuable today” (source) – So think of it as something that doesn’t really get affected by inflation, and hence won’t lose its value. Money’s second role is to be a unit of account. The thing that goods and services are priced in terms of. For example, the price of items you see on menus and tags. Pound is currency of the United Kingdom, but it could be a type of good instead. It could also be barter: ‘give me 5 goats if you want my new horse.
Use of mathematics in economic theorizing has restricted economic analysis of consumer behavior within a confined boundary of certain axioms. Often, these axioms are found to be empirically false.
Despite huge burden of taxes in this budget, 75% of all tax revenues will just go in paying interest on and instalments of previous debt. Last year, government spent around Rs 400 billion in PSDP. Spending every year in PSDP falls short of announcement. This Rs 400 billion is less than even 5% of what we will pay in debt servicing and less than 20% of what we will spend in defense.
The central thesis of the book is that ethical principles of Islam can be condensed into four axioms through which all teachings emanate or can be explained. These axioms are: Unity, Equilibrium, Freedom and Responsibility.
Those scientists who believe in Scientism and hold that the experimental method is the only arbiter in all matters of life need to look no further than the field of economics where the tools and concepts of physics are applied. Even though science cannot be arbiter in morals, defining motives, public policy and politics, but it cannot even be a perfect and sufficient tool in explaining economic behaviour by taking the analogy of animal behaviour which is based on self-interest and survival instincts.
If the virus had been growing at a linear rate, it would not have been that much dangerous. It is the exponential increase in the Corona Virus spread which makes it become uncontrollable and create havoc in the society. Compound interest in the financial system is such a Corona Virus. Interest accrued but unpaid increases interest in the future periods ahead at an exponential rate.
Many professionals today experience a dilemma where they must make a choice between being good humans and being good at their job. They are left to wonder how the principles of love, generosity, fairness, reciprocity, and trust that they know to be true about life in general, do not apply at work. Some resort to the unfortunate conclusion that cold selfish behaviour is “natural” for human beings in economic situations. This is false. One of the prime reasons for moral listlessness at the workplace lies buried in mainstream economic theory.
Islamic Economics Project 