Islamic Economics: A Critique of Capitalism and a Vision of Well-Being

 Religion is not just a matter of personal faith, but also a source of universal values that can guide human behavior and social institutions. Islam, for example, provides a comprehensive worldview and a moral framework that is compatible with reason and human nature. It also recognizes the diversity of human cultures and allows for pluralism and tolerance.

The market is not the best mechanism for allocating resources efficiently and respecting individual rights. It is based on unrealistic assumptions and leads to undesirable outcomes, such as inequality, instability, environmental degradation, and moral decay. The principle of self-ownership and the entitlement theory of justice are also flawed, because they ignore the fact that all property ultimately belongs to God, who has entrusted it to human beings as a trust. People have the responsibility to use their property in accordance with God’s will, which is to promote the well-being of all His creatures.

Human well-being is not only based on material needs, but also on spiritual needs. It includes both the satisfaction of basic necessities and the attainment of inner peace and happiness. It also involves the development of human potential and the fulfillment of human purpose. Well-being can be measured by both objective and subjective indicators, such as income, health, education, security, justice, morality, faith, and happiness. Interpersonal comparisons of utility and social choice can be made by using a combination of rational criteria and moral values, derived from both reason and revelation.