CAPITALIST ECONOMIC SYSTEM SELF-DESTRUCTIVE jeon rwxr-xr-x 18 Thursday, July 14, 2011

Filename	CAPITALIST ECONOMIC SYSTEM SELF-DESTRUCTIVE
Permission	rw-r--r--
Author	jeon
Date and Time	Thursday, July 14, 2011
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          The economic crisis is expected to occur again in this country, also in other countries. How could this happen? Why the current economic crisis seem to keep recurring. Where is the root of the problem? How did a very basic solution according to Islam? 

          crisis in the capitalist economic system that is cyclic nature. That is, economic growth happens just round to the summit to the valley and then fall into crisis again. And so on. It happens in all countries around the world. It's just different cycle period. For developed countries with good economic fundamentals such as Japan, countries in Europe or the United States, the cycle was around 25 years. Indonesia, Thailand and similar countries has been about 7 years. Indonesia has experienced a crisis, though not severe in the late '90s. Improvement continues. Mid-1997 economic crisis hit Indonesia terrific. After that, when recovery is not yet perfect, the shock re-occurred around 2005, mainly after the fuel price hike, and continued until now. The indication is continued weakening purchasing power, poverty continues to rise, slowing economic growth to unemployment continues to swell. 

          One major cause is the practice of usury and gambling. Both forms of non-real sector of the capitalist economic system in the form of banking, insurance, and stock trading. In a capitalist system, money (also capital) are regarded as private goods. In their minds, both invested in the production process or not, all capital must make money. In fact, investment in non-real sector today is likely to continue to increase, far beyond the money circulating in the production sector. This is called by Paul Krugman (1999) as the "economic bubble" (bubble). There are more than Rp 230 trillion of public funds collected by the various banks with difficulty, as well as Rp 90 trillion funds belonging to local governments throughout Indonesia, which was idle (not moving accumulate) in Bank Indonesia. This makes the economic growth achieved does not automatically affect employment. If in 2000 every 1% economic growth to absorb about 400,000 workers in 2003 dropped to only 253,000, even in 2006 growth of 1% is only open 42 thousand.Meanwhile, on the trading floor every day circulating money of up to Rp 3 trillion. Stock market capitalization in Indonesia is increasing. When in 2005 the stock exchange accounted for 36% of GDP, in 2006/2007, the Indonesian stock exchange accounted for 42% of GDP or approximately USD 1800 billion. However, this situation is not encouraging because of Vice President Jusuf Kalla on performance stock exchanges of Indonesia, which he said included the best in the world, does not automatically affect the real sector. When the stock market can not move the real sector of the stock market does not mean anything. That said Jusuf Kalla in front of Indonesia Investor Forum in Jakarta last May. Therefore, he called for attention to the stock exchanges of real sector; an appeal is futile because the two are unrelated. 

          Islam distinguishes money (money) with capital (capital). Money as public goods is a flow concept, while the capital as private goods is a concept stock. Money belongs to the people. Therefore, the accumulation of money (or be left unproductive) is prohibited because it would reduce the money supply; when compared with blood, the economy will be sluggish blood deficiency or stagnation alias. The faster the money spinning in the economies will be increasingly good for the economy. So, the money should be spent. Otherwise, as private goods, funds were invested, diproduktifkan either directly or by doing business in the form syarikah cooperation with others; can also wherewithal, or lent without usury, and issued their zakat and banned for gambling capital. In the macro, the steps that will make velocity of money will grow fast. This means that new blood is in addition to the overall economy.