It's clear that Capitalism as the West defines it is flawed. The West is saying this. Not communists or islamists or any kind of people who would be interested in gloating and pointing fingers saying "We told you so!".
The obviousness is so blinding that opponents of pure hardcore globalized capitalism are not even making an effort to Yteshammetoon.
So what is the west doing wrong?
Me for one, take my right and wrong primarily from Allah and his messenger Mohammad PBUH, and here are 2 main ways in which the "west" is doing business the "wrong" way:
1- Interest Loans. Reba in arabic. Which is how any loan is given out these days, and this is the most dangerous one, and I'll skip it for now and dedicate a future post about it inshalla.
2- Buying and Selling the Unknown. Bay3 gharar in arabic.
And I want to talk about this 2nd form in this post.
Gambling is 7aram because it involves buying an unknown. A yet undefined object. You pay 1 dollar, and you get a lottery ticket, and on the day of the draw, you MAY win (0.00-add appropriate number of zeroes-001 chance) and get millions of dollars, or you MAY lose (0.999-add appropriate number of 9's-999 chance) and get Zero. Nothing.
You can say any business proposition carries ambiguity, which is true, and Islamic economists acknowledge that, but they also differentiate between situations where the ambiguity is either:
A- Unavoidable. or..
So lets take cases:
- Gambling? Risk is obviously engineered and designed, therefor VERY intentional. hence, 7aram.
- Opening a restaurant on top of Abraj liKuwait? Risk is still there that no one will eat there, or that the tower will collapse or whatever, but the risk is not intentional and largely unavoidable, and in most cases low anyway. hence, obviously and inarguably 7alal.
- So what about Insurance?
You pay X amount per year, and your car MAY get damaged, and MAY not.
The risk gets calculated and crunched endlessly and insurance companies work very hard to make their risk analysis as accurate as possible, putting all sorts of inputs into the equation like car make, car age, driver age, driver traffic history, regional norms of recklessness .. and on and on. They try to predict the future basically. And based on the probability that you'll crash this year, they put their insurance payment and their markup.
Can the insurance buyer (You) get access to all this information? they own multi-million dollar computers and software to do all that calculation, while poor you don't have the feintest idea. What if the odds were in reality on your side? but you buy the insurance anyway out of what?
what do you get out of it? simply assuaging and comforting your fear.
It's an industry based on Paranoia and Fear mongering.
They make you pay money simply so they can remove your fear of a crash.
But there's no limit to one's fear right? they can sell you insurance for ANYthing.
You start with a car's crash, but then you go into maintenance, then you go into REALLY crazy stuff like losing baggage while travelling, they even insured Jennifer Lopez's rear body part. because they made her fear getting fat and losing its attractiveness.
To sell more insurance and make more money they only have to foster FEAR inside you.
Islam deals with this nonsense swiftly. Islam calls it "Bay3 Gharar" which means literally "Trade in the Unknown". Fear is NOT quantifiable.
I faced this problem in my own work, regarding buying hardware support contracts, where simply put, if a server goes bust, the supplier is obliged to replace it. and I pay X KDs a year for this contract.
When I calculated the actual history of servers going KAPUT and which actual parts (usually the harddisks and maybe the fans) are more likely to fry, and the cost of buying a couple of spare parts to keep in the store for the case of an emergency, I found that we were paying atleast 10 times as much. Simply because we chose not to deal with our fear ourselves, and let someone else handle it for us.
Now.. PLEASE argue with me :)
My brother sent me this hilarious poster this morning. Take special notice of the blue box