A Good Economic System Essay Sample

Even though the leaders of the world are more knowledgeable about the economy than ever before, the world is moving toward economic disaster, due to a disadvantage in the global economy. Not only will poor countries will be affected, but also rich countries will lose huge amounts of monetary reserve. Every country will bear part of this economic disaster. However, the economists argue about which economic system will guide the global economy to the most beneficial position. I support the new economists who encourage people to deal with Islamic banking services. Only an Islamic economy system can sustain a strong economy forever, because it has the correct criteria to save money, find the balance between poverty and wealth, and increase the dynamic situation of the global economy. Via these abilities, such economy systems are able to run correctly and to prevent an economic collapse. The economists are trying to decide which economic system will best help the global economy: Socialism, Capitalism or Islamic.
The Socialism Economy system was established in the twentieth century, by Karl Marx. Marx’s theory on which social and economic system is based has social ownership by abolition of class divisions in society. It also achieves justice and equality among members of the community. It destroys the first principle of economy, which is to save money. It does this as the person does not earn money, even when he struggles to earn it by working hard. This economic system does not distinguish between who saves money and who does not because the incomes apply to all groups. For example, a farmer who is able to collect a large amount of wheat from his plantation will get only a quota of the wheat, and the rest will be given to others. Conversely, socialism abolished the exploitation of humans by humans, and achieved equality among all members of the community. For example, there is deemed no difference between the poor man and the wealthy man. Both receive the same quota of goods and the same services from their government.
In contrast, socialism is attempting to increase the dynamic of the global economy by focussing on equality among members of the community, and standing against businesses. Matters are equal between the industrious and the lazy. For example, the Russian businessmen run to Europe or the United States to do their business. It is clear the socialism abolished differences between the poor and the wealthy, but fails to save money, increase the dynamic of the global economy, or stop the economy collapsing.
The Capitalist economic system is an economic revolution which merged with the industrial Revolution. It supports private property and freedom of individual pricing systems, in accordance to offer and demand. In the first place, capitalism encourages the saving and re-exploitation of money. It changed part of the industrial development to the banking industry which depended on interest, which accumulates money very quickly and easily. For example, all banks in western countries, such as City Group and the Bank of America, which depend on making money from credit cards and loans for consumers. Meanwhile, capitalism increases the difference between the wealthy and poor in society more than any other economic system in the world. It gives the businessmen the ability to earn even more money. For example, the government of the United States imprisons those who do not pay their tax but, conversely, forgives big companies for the same crime. Many economists believe that the Capitalist economic system is able to increase the dynamic of the global economy. However, the truth is that this economy destroys itself because it causes everyone to take out loans in order to repay other loans. This moves the economy forwards and each loan has its interest increased every year. For example, in the budget of the United States government for the last ten years, the interest has been inflated every year. Certainly, capitalism encourages saving money, but it also widens the gap between the poor and the wealthy, and fails to increase the dynamic of the global economy or to prevent economic collapse.
Islamic economy system involve orders and directives of the economic realm, revealed by God in the Koran to the Prophet Muhammad (Peace be upon him). Saving money is part of the Islamic religion. This economic system encourages saving money by effectively balancing a person’s income and outcome; at the same time, it also limits the monopoly of money. For example, any amount of money which has not been used within one complete year causes the owner to have to donate 2.5% of the total amount to poor people. Moreover, the Islamic economy system aims to decrease the differences between wealth and poverty by using social solidarity, which gives limited percentages of money from wealthy people to poor people. For example, it gives 10% of the crop at harvest time to poor people. Additionally, the great advantage of the Islamic economy system is that it is against the existence of interest. For this reason, the dynamic of global economy can be increased with this system. Economic collapse can be prevented because the system uses Islamic loans and prevents the stagnation of money. This will encourage wealthy people to put their money into the economy which will in turn provide work for the poorer people and increase their incomes. For example, a person who has $1000 will lose 2.5 % of this amount every year if he does not let this money run in the markets. The difference between an Islamic loan and others is the interest. For example, $1000 as a loan to a person for 10 years will generate a 10% profit for the lender. In an Islamic loan, however, the person will repay this money as $1100 after one year or ten years, whereas with a non Islamic loan, he will repay the money as $2000 after ten years. The Islamic system is able to increase the dynamic of the global economy and to prevent an economic collapse. In the final analysis, the Islamic economic system is saving money, finding the balance between poverty and wealth, and increasing the dynamic situation of the global economy.
In summary, socialism and capitalism do not work because socialism has fallen in under twenty years, and capitalism is on the way to its end. Only the Islamic economy system is able to save money, find an appropriate balance between poverty and wealth, and increase the dynamic of the global economy and prevent economic collapse.