Thursday, April 3, 2014

Islam and Capitalism: A Muslim’s Defense of Capitalism



By Inas Younis, New Age Islam
02 April, 2014
There is a new kind of entrepreneurship in America, the socially conscious kind. It’s the kind which makes profits by condemning the profit motive.  It’s a less controversial form of capitalism which goes by different designations like caring capitalism, creative capitalism and the newest buzzword:  conscious capitalism. 
Conscious capitalists are on a mission to rebrand themselves by launching philanthropic initiatives at home and abroad.  Their motto is, “to create financial, intellectual, social, cultural, emotional, spiritual, physical, and ecological wealth for all their stake holders.” Percolating beneath this orgy of good will lies the suggestion that capitalism is a necessary evil which needs the antidote of consciousness.   That resources are finite and those who have more are the reason others have less.   Of course the equation is not so simple because the problem of poverty is not material but political.  It has never been about a lack of resources, but about the individual freedom to develop technology to convert resources to material wealth.   Sitting on top of an oil well does not manufacture petroleum based products.  But freedom, the economic kind, does.
Conscious capitalism is America’s apology for a capitalism corrupted by hyphenations. Crony capitalism, corporate capitalism, conscious capitalism are all approximations designed to avoid the reality that we live in a relatively controlled and artificial economy.  In a controlled economy, Government interventions force an economy to function in a counterfeit environment, where some are sacrificed for the benefit of others.   A government which makes concessions for some and not others,  according to the immediate social needs of some and the political needs of others;  opening the door to the political corruptions inherent in today’s pressure groups politics.  And all this is justified using the argument that in order for capitalism to be compassionate, business must be nudged to make decisions in the public's best interest.  The assumption being that our government is more equipped to look out for your interests than a market governed by your dollar.   But a big government, like a corporation, will by definition become corrupt because it is built on the highly specialized division of labour where passing the buck is the only path to making one. And unfortunately, many   of today’s capitalists are beneficiaries of this artificial environment.  They employ government to act as a weight upon which they can leverage productivity and ensure limited liability.  
 

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