Fiqh of Islamic Finance

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Akram Nadwi

Channel: Akram Nadwi

Episode Notes

Episode Transcript

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Okay, we see loads of modal here.

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While I'm doing the morning, I discuss in detail

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the main tools of Islamic finance. And then I've been also the theories, the main three schools are in the modern economics. And then I explained also in detail that Islamic economics is actually an offshoot of you know, neoclassical economics, that explain and I expect with a similarity.

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So, let me summarize actually, what are the main problem in new classical economics, the first thing I mentioned is that what they believe that the words of the human being are unlimited in different owns. Second thing is what they believe that the resources are scarce resources are limited, what there are the citizens there in wants are unlimited, our resources are limited, then basically, what the need now is the work of allocation, how to allocate that I mentioned that, you know, in other words, economics is the study of choice, and decision making, in a world with limited resources, when they make the choices in neoclassical economics, how we choose one one or the other, how we

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prefer the way your own desire, your own desire, you also prefer that about every individual is the best judge of his own welfare,

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then what happens, once they decide this, then what is the purpose of

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basic consumption you when you buy something, and what is the purpose of production, so the purpose of consumption is to maximize the utility and the purpose of in your production either to maximize the profit, the meaning to accumulate the wealth, so that's the main thing

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what happens is for this purpose, to you know, to maximize your profit, or to maximize your maturity, they have got the institution of Market to Market, they want the best institutions today to help this this this goal, that you know, people can maximize their infinity they can maximize their profit, mercy market, the institution, and market what's occurred to their in understanding and the system and the best of demand and supply

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once they got this demand supply, then it was easier for them to control the whole economy, the whole market and then whole economic, the car control that.

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Now, once you get this new classical economic into society, certainly you usually easily can see ended up happening, what will happen is, the society will have a competition, the competition of what the competition in basically in the consumption. Do you know, everybody wants to know, if I buy a car, you want to buy a car better than me, if I want, I want to have a house, you want to house better than me, that is a very big competition in consumption. This society basically this this whole economy, that they have left, they split up in a competition, but competition in what in a consumption, it could be that you don't need something, but since my neighbor has got something like

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that, I must have to concede very often people buy things not because they needed, they buy it why because somebody else has to this competition and kind of perception happened there. Second thing it also when you want actually the whole purpose is to maximize your profit, their competition also is in accumulation of the wealth, I want to become will get the new everybody wants to know if I have you know, if I have this money in my account, you want to have more than me, everybody wants to research telling me really when this will happen, this competition rivalry will come into society, what will it create? It certainly will create many of those things that is alarm has come to remove

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them from the heart of the mankind, it will basically create the compensation in this world, not for ourselves, for this world, the consumption and you know, an accumulation of wealth, they are worthy matter, to the whole focus of this world. What Islam has covered the Hereafter

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is largely Zoda. And what was this gravitational theory? Is it No, in terms of the word love? Don't you love the word? When this competition happened? Jealousy will happen.

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Because I don't want you to be richer than me. I don't want you to have to carve better than me or kill people fight for other people kill each other for the purple company this rivalry will happen, where rivalry will come and jealousy will come, jealousy will come hatred will come greed will come. These are the illness which actually are a result which everybody see because of this. This new classical economic, everybody can see is not hidden. And that we're urahara takaful Hotez. This takato is basically a result of, you know, this whole thing.