Critical Analysis of HT’s Economic Policy3and industry. It also dedicates a large section to companies, both Islamic and Western. Due to mylimited related knowledge, I will comment only on selected topics.Following this are chapters that detail what can be owned by the state as well as what is specified as
. This includes ‘public necessities’, utilities, natural monopolies, and welfare services.I will discuss these matters in detail.Finally, the book discusses money and fiscal matters. This will also be discussed.During my talks with HT workers and members, in addition to reading the literature, I havediscovered certain fallacies that are rampant in common parlance.
It is the duty of HT and its workersto identify and remove these incorrect perceptions so that they are not propagated. The rest of thissection is dedicated to explaining some of these common issues, so that readers do not fall in the sametrap.
1.1. Capitalism vs. Western Economics
A good deal of the antagonism hurled towards Capitalism in HT (and Muslims in general), is dueto the lack of understanding of the Western economic model. In point of fact, this vitriol should bedirected towards Western economics and not Capitalism. We should realize that the current economicsystem imposed on the world, the one forcing every country to run a central bank, that issues moneyon interest (riba), overseen by the World’s über banks— the IMF and the World Bank— is a flawedsystem that has more to do with Socialism than Capitalism.
Many capitalists throughout history,have vehemently opposed any step that brought them closer to centralization. Throughout the historyof the US, numerous presidents have opposed having a central bank at all. In fact, historians nowbelieve that the imposition of the Bank of England was one of the reasons for the American War of Independence. On numerous occasions, the Americans resisted the establishment of a central bank. Itwas only much later, in the early 20th century that the Federal Reserve was established in the US.Contrary to what is taught in HT’s books
, Capitalism is not a system. It is, in fact, the
of an(imposed) system. Capitalists do not hold one ideology and develop their system from it. You canhold any ideology you want in a purely capitalist country—one that does not exist today, or has everdone so—and continue to function productively.Capitalism is the expression of the basic needs of man. When you walk to a store, hand over somemoney and buy a soft drink, you are a capitalist. When you work for eight hours a day and get paidat the end of the day, week or month, you are a capitalist. When you save some of your money to beused later, to buy a car, or perhaps start a small business, you are a capitalist. As you can see fromthese examples, there is as much wrong in being a capitalist as there is in being human.As far as we know, man has always been a capitalist, a storer up of labor, and wecannot conceive of a time when he was not making such tools. Thus, the stone axewhich he made to subdue an edible beast became, after centuries of reflection and
These are mostly general fallacies held by most of the world, and so HT should not be held solely to blame for holding them.
Relevant material is present in Mises,
, Lecture 3; Mises,
Section 2; Hazlitt,
The Failure of the New Economics
, Section XXIV.An excerpt from Hazlitt:“Through its socialized investment … the State would decide which firms or industries to expand and which to freeze or contract.Even though the State did not technically own the instruments of production, this would lead to a de facto Socialism.”
The System of Islam