The Weaknesses of the Capitalism Economic System

In conclusion the book Islam and Economic Challenge (1992) 3, Dr. M. Umer Chapra explain a number of weaknesses of the Capitalism economic system.

After separating himself from strength with the value-Jewish-Christian values, capitalism does not have any choice than to rely solely price advantage and private mechanisms to filter and power motivation to balance aggregate demand and supply, and achieve efficiency and fairness in the allocation of resources . It is said that the prices are determined not only set the market demand but also aggregate, affect the level of reimbursement that is not evenly distributed, transfer resources from the sectors relative to less profitable sectors more profitable. Adjustments-adjustments in the demand and supply is realized by the interaction forces cause this market with a new balance of efficiency and fairness require that the maximum without value considerations or government intervention.
The use of price mechanisms as the only strategy for the allocation of resources to protect the freedom of the individual but prevents the realization of efficiency and fairness, unless conditions specific basis, including the distribution of income and wealth and the competition perfectly balanced, fulfilled. Because conditions can not be met in normal circumstances, the freedom of individuals to meet a maximum amount of desire-desires in accordance with individual preferences allows Oran rich to have a greater demand in the use of scarce resources when there is no mechanism other than price used to set up the resources. Pressure on resources caused by the struggle to fulfill that desire as big as likely to set a balance in the economy at a price that is relatively more for goods and services, including the means to meet the needs.
While the ability of the rich to pay the price enables them to obtain what they want, the poor, the oppressed, because their income is not sufficient that it does not also increase in accordance with the price increase. That way, their ability to pay market prices to meet the needs of goods and services this decrease. Thus, they are trapped in a vicious circle of poverty and loss. The greater disparity in income and wealth, the larger the power switch to the rich resources that the price mechanism to allocate resources and eliminate the imbalance. This diperburuk by the conventional banking system is based on the interest that people change their savings only to the rich, who have insurance and who eventually becomes rich and powerful shift in resources is even more remote from pemuasan needs.
Any effort made for a fair distribution of certain harmful people rich in every community where there is an inequity in the distribution of resources. What a rich base that agrees to be injured in a secular society that is free to hold the value that optimization Pareto principle? To motivate them to be prepared for the welfare of disadvantaged people, not only need to have values that are agreed with the grip into each person, but also a motivation system that guarantees that they will receive rewards for the sacrifice they make.
Odds can have values that agreed to hold still if sekularisme philosophy. Sekularisme not necessarily mean lack of values; all people have value and not the secular exception. Which is done by sekularisme revoke the values of collective sanctions are defined by religion. Without such a penalty is, difficult for a society or government to achieve a konsensu the dperlukan to translate the goals and values to the scale of social priorities in the use of the scarce resources - a priority that will be supported even though the people he hurt the interests of private . Furthermore, in the short term, given the temporal perspective sekularisme to make the interests of private wealth accumulation and the appetite is tuuan main of human life. Is not "rational" for anyone willing to be injured when the other only to the satisfaction of himself.
Thus, although capitalism include humanitarian goals of religion to cover the surface of the weaknesses, strategies remain perplexed turvy. Role of moral values ditumpulkan by the emphasis that is not necessarily on individual preferences and penyadarannya entirely to the price mechanism. Operation blind market forces with an opportunity to receive so that is not let to create ketidakadilanyang can do. Revocation criticism of Jewish-Christian heighten the interest of injustice. Therefore, the conflict between the objectives and strategies into the social Darwinisme shirt with the purposes of the noble humanity.
Therefore, while the strategy is able to improve the market system initiatives and personal motivation, and a growth rate higher, by allowing individuals to meet their own interests., He is not able to meet the social interest except when their personal and sosia consistent. This helps to give some explanation about why the system fails according to market criteria of efficiency and justice. He was not able to produce any, based on their own strength, whether a configuration of goods and services that will satisfy the need for all or a distribution of income and wealth is fair. Thus one can say that the moral kevakuman introduced by sekularisme make the market system may not achieve growth dapt with redistribusi except when applied to a compulsion to create the basic conditions of good, as has been done by a foreign occupation force in Japan, South Korea and Taiwan. And even in cases such as this can only be held temporarily, unless strengthened by a strategy that will help defend it.