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Published On:15 September 2011
Posted by Indian Muslim Observer

From the Greener Pastures to the Burning Malls – A Sad Story of Western Economy

By Ilyas Sharfuddin

Fourteen (14) trillion dollars, i.e. Rs. 658 trillion approximately is the amount America owes to the nations of the world like China, Saudi Arabia, and India etc. This situation has forced Standard & Poor to downgrade America’s rating from AAA to AA+.

The situation has become so serious that Russian Prime Pinister Vladimir Putin in a recent interview called America a global economic parasite and recently Vice President Joe Biden had to visit China to assure them that their investments in American Bonds are safe and secure. The result of this crisis is that America could not generate a single job in August 2011, and the future of job market is looking bleak.

What makes a global super power with a budget surplus at the time of President Bill Clinton just a decade ago had to come to its knees before the entire world?
Let us examine its reasons and what lessons we can take from it.

Reasons

There are not one, but many reasons. And, all are ironically more or less related to the same model of liberal economy which makes America a global super power in first place. Yes, I am talking about liberal economy, free market, capitalism or whatever name you give it.

Liberal economic policies in its initial days have given America an edge on the rest of the world. Soon after the First and Second World War, this resulted in an industrial revolution and economic boom.

Right from latest technological gadgets like TVs, tape recorders, transistors, computers, laptops, iPods and mobile phones – America produces everything and sells it to the world and earn billions and trillions, thanks to the liberal model of economy.

Along with this America’s economy policy also forced it to legalize alcohol, gambling, prostitution, strip tease clubs and all that which can make money, keeping very few options unavailable. This no doubt resulted in increase of revenues to the government and makes it richer.

Day by day the life of conman man in America started changing like anything, and the proof is an average American’s consumption of food is 8 times higher than an Indian. And, consumption of electricity is 38 times more than his counterpart in India.

Houses, cars, air conditioners, refrigerators and other electronic and electrical appliances along with air travel and other luxuries have become just another thing for an average person. American industrial houses and business community through its lobbying through hard cash and other benefits force American political parties to design and implement economic policies which could multiply their revenues irrespective of its effect on overall economic system of the country. Even today when American government is facing tough times in generating revenues, top notch American alcohol, tobacco, gambling and oil companies are earning billions.

What went wrong suddenly which brought America to this position? The answer is:
Too much of everything is bad.

When liberal economy becomes blind, when American corporate houses start dictating internal and foreign policies of America, things start going out of hand. First banking sector started behaving like a greedy farmer who wants to take all the golden eggs in one day. They started giving loans to every Tom, Dick and Harry for more commissions and more interest based revenues and started mortgaging the loans again to some third party and so on, resulting in surge in housing prices which resulted in the housing bubble which later on burst and gave the world its worst recession till date.

This housing bubble alone gave the loss of three times of the world economy estimating at US$60 trillion. According to world class economist and Islamic Development Bank (IDB) Chairman Umar Chapra, the second disastrous policy of American government is waging useless wars in Iraq and Afghanistan which forces the American government to spend more than US$3 trillion As per the War Committee Of American Congress, these wars not only never served the actual purpose of tackling global terrorism, but rather they tarnished the image of America which it has acquired through lot of sacrifices and good effort during the Second World War.

Then come the budgetary allocations of American government for various schemes which results in putting lot of pressure on the government with fewer revenues and much more expenditures.

And, last but not the least, American youth which once pioneered in scientific inventions is losing all creative skills in booze, sex and crime, forcing President Barack Obama to keep on warning them to study seriously in schools and colleges or else the jobs will move from Buffalo Cty to Beijing or Bangalore.

More or less these are the same reasons for the collapse or soon-to-be collapsing Europeon nations like Iceland, Greece, Spain, Portugal, Ireland etc.

Lessons to be Learned

Never ever be Greedy. Never base your economy on interest based formula. Never be Spendthrift. Never allow things in our society which are dangerous for youth and kill their creativity and destroy their lifestyle. And, never wage wars in a cowboy fashion just for idiotic adventurism because if you do so, then not only you take your nation or continent towards disaster but pin along the whole world with it sometimes. These lessons one can easily find in the final command of only god almighty Allah (swt), the glorious Quran and Sayings of the final Prophet Muhammad (pbuh).

Al Quran says in Surah Baqrah Ch 2 V 275-276

“Those Who Eat Riba (Usury) Will Not Stand (On The Day Of Resurrection) Except Like The Standing Of A Person Beaten By Shaitan (Satan) Leading Him To Insanity. That Is Because They Say: "Trading Is Only Like Riba (Usury)," Whereas Allah Has Permitted Trading And Forbidden Riba (Usury). So Whosoever Receives An Admonition From His Lord And Stops Eating Riba (Usury) Shall Not Be Punished For The Past; His Case Is For Allah (To Judge); But Whoever Returns [To Riba (Usury)], Such Are The Dwellers Of The Fire - They Will Abide Therein.”

276. Allah Will Destroy Riba (Usury) And Will Give Increase For Sadaqat (Deeds Of Charity, Alms, Etc.) And Allah Likes Not The Disbelievers, Sinners.
Surah Bani Isra Ch 17 V 26- 27

26. And Give To The Kindred His Due And To The Miskin (Poor) And To The Wayfarer. But Spend Not Wastefully (Your Wealth) In The Manner Of A Spendthrift. [Tafsir. At-Tabari, Vol. 10, Page 158 (Verse 9: 60)].

27. Verily, Spendthrifts Are Brothers Of The Shayatin (Devils), And The Shaitan (Devil - Satan) Is Ever Ungrateful To His Lord.

And the practical example of the above teachings to an extend we find in Islamic Saudi Arabia who in these tough of recession is at spending spree, higher in hundreds of thousands local and foreign work force, spending billions on infrastructure and giving billions in the form of humanitarian aid to poor and deserving people of the world.

So it is proven that old is gold, Islamic rules from Quran and authentic Ahadeeth , called medieval by the west, is proving to be the source of security and success , peace and prosperity.

[Ilyas Sharfuddin is Editorial Consultant – Islamic Dawah of IndianMuslimObserver.com. He is based in Hyderabad.]

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Posted by Indian Muslim Observer on September 15, 2011. Filed under , , , , . You can follow any responses to this entry through the RSS 2.0. Feel free to leave a response

By Indian Muslim Observer on September 15, 2011. Filed under , , , , . Follow any responses to the RSS 2.0. Leave a response

1 comments for "From the Greener Pastures to the Burning Malls – A Sad Story of Western Economy"

  1. Great piece!! The article aptly highlights the decadence of moral, spiritual and financial aspects in the Western world. Following Islamic values in its true sense is the only panacea for coming out of all ills and vices. Br. Ilyas Sharfuddin we look forward to more such articles from you on Indian Muslim Observer.

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