In the name of Allah Most Gracious Most Merciful.
I’ve been trying to study Economics for the past 2 hours. Guess i need to try harder. teehee. Just a continuation of my previous post, (i realized that i tend to post more that one posts per day/night just for the sake of separating the theme/topics) i have the urge to type about what i’ve been studying :3 hew hew. When you’ve been
indoctrinated (ok. that might sounds a bit pejorative), educated about the how the world works in the light of the western, at some point, you will be wondering what I should think about this and that? It is undeniable that we are always being so critical about the economic system now, but yet we are going with the flow. A capitalist system where desires and infinite wants are being fulfilled and perhaps this define economic growth. To define economic growth itself is rather complex, because it, nevertheless, depends on how one understands it. Yes, there are certain indicators that are being suggested ; GDP, GNI, GNP, HDI to actually measure the degree of economic growth. Yet, the accuracy is still questionable. But, I’m here not to question philosophically the fundamental definition of economic growth but to shine a light (prolly not significant, but hey, it’s the effort that matters:)) on the reality today (or even the future)
I’ve been inspired (eceh) to write about this once i saw an economic student from Jordan posted about how zakat and sadaqah can potentially trigger economic growth. So it’s all about ‘Passing it Forward’. Yes peeps, i did quote from a movie and simultaneously speaking literally. Currently, there is a condition where there is inequality in distribution of income. It is widely occurs throughout the world or even within a country (or even under your rooftop).
So how does this works? One may assume that if you actually give charity, zakat, sadaqah, gifts in terms of money, the economy will somehow shrink because the money is getting less. Now, pause there. We have to think what actually drives the economy. It works with supply and demand – at some point, supply will try to fulfill demand. The king of the economy, shall i say, is the aggregate demand. If we implement, or practive zakat/charity and giving it to the rightful – those who actually need it, without imposing any rates of interest, the ones who previously couldn’t afford to consume, will eventually consume. So if you think about it, the percentage or simply put, the amount of consumers will increase – thus increasing the consumption. Just a quick note, consumption takes 60% of the aggregate demand (whereas the rest comes from govt spending, investment, net value of trade). This implies that high consumption will eventually boost aggregate demand – hence will trigger economic growth. See the causation line?
Yes, the act of zakat and charity indeed requires morality and knowledge.
آمِنُوا بِاللَّهِ وَرَسُولِهِ وَأَنفِقُوا مِمَّا جَعَلَكُم مُّسْتَخْلَفِينَ فِيهِ فَالَّذِينَ آمَنُوا مِنكُمْ وَأَنفَقُوا لَهُمْ أَجْرٌ كَبِيرٌ
“Berimanlah kamu kepada Allah dan Rasul-Nya dan nafkahkanlah sebagian dari hartamu yang Allah telah menjadikan kamu menguasainya.Maka orang-orang yang beriman di antara kamu dan menafkahkan (sebagian) dari hartanya memperoleh pahala yang besar”
oh cool. at least i revised while blogging. later peeps!