AM01 Intro

This introductory lecture, in urdu, is meant to explain the difference between the Islamic approach to education and the Western approach. The Western approach is meant to turn out standardized parts -- human resources -- for use in the capitalist machine for manufacturing goods and services, and making money. The Islamic approach, on the other hand, is meant to develop the unique capabilities in each student, which requires personalized and individualized attention. The value of an education depends on the PURPOSE for which education is being obtained. The purpose of our lives is never actually discussed in Western education, but the subtext explains that the purpose of our lives is to make money, and to enjoy life, by pursuing our desires. Islam offers radically different perspectives. These issues are discussed in detail in this lecture

For more introductory remarks, and LINKS to other relevant lectures and materials, see: The First Lesson on my Islamic WorldView Blog

Questions:

1. What does economics teach about the purpose of life?

ANSWER:

1. Purpose of life is to maximize utility at individual level and to maximize welfare at society’s level.

2. Money makes the mare go. You can purchase what ever you want if you have money. Consumption of things give you satisfaction which may be considered a synonym of happiness. In other words money can buy happiness.

3. Pursuit of material wellbeing is everything one should have. The more Belonging you have, the more satisfied life you lead.

4. Fulfill your desires. Your desires are the driver of your life. By fulfilling desires you are maximizing utility.

5. Do what your heart wants. No need to think about life here after. This worldly life is everything. Eat and drink and tomorrow you may not be alive.

6. Humans are assets in the labor market. Human body is merely a combination of bio-mechanical parts. A human being too has a specific price (just like any machine) at which he can sell himself in the competitive labor market at competitive wage.

7. Utility maximization is called rationality. Those who do not try to maximize their individual utility are insane. Wisdom implies maximizing your satisfaction though in a selfish manner.

2. How would the subject of economics change, if we changed the purpose of our lives away from personal pleasures to service of the creation for the sake of the love of Allah?

ANSWER:

1. Purpose of life is to seek the pleasure of Allah. Allah loves those who help others. Serving the humanity is one of the ways to succeed in life hereafter.

2. Money can not buy happiness. Money does matter but not all that matters. Relationships matters a lot more as compared to money. Allah orders us to spend money on others. The ministries in each country are trying to increase growth to reduce poverty and to feed the poor. But it is not correct. Islam says eat and drink but don’t waste. You may have scarcity so growth is not solution but to manage things in a proper way is the solution. Dr Mehboob-ul-Haq once said, “take care of your poverty and everything else will take care of it itself.”

3. Islam does not deny material well being. We should collect enough resources to lead a comfortable happy life but pursuit of material wellbeing only is a deception. Everything will be destroyed one day and so it is wellbeing of the inner eternal soul which should be concentered upon and not the mortal material body. Effort should be made for material as well as spiritual well being of whole of the society.

4. Fulfilling own desires by ignoring others is not required in Islam. Fulfilling a desire actually gives comfort for a brief short period and so it is a temporary thing. Self control is important. It is like horse and man example. Body is horse and soul is rider. Soul must control the body and not the vice versa. Helping the destitute through Zakat and charity can give a lot more pleasure as compared to spending on personal desires.

5. It is not required in Islam to follow the Heart blindly. All actions must be under the control of Shariah. Shariah is not the law, but the path which leads to the welfare in both the worlds. Shariah asks to interact with other human and to share their pleasures and sorrows. The long run pursuit of Shariah is to prepare for the life hereafter and short run is to take necessary steps for it.

6. Humans are very precious beings. Each human is unique in itself and so each one can device his own way to lead a pleasant life. Humans can not be dealt like other material assets. Labor market must not exploit the workers. Karl Marx said, "produce is distributed unjustly. Powerful get a larger portion from produce." Today only sixty people own 50% of the world’s wealth.

7. To maximize own utility by ignoring others is not a rational decision. Ultimatum game denies selfishness. Only economists are selfish, humans in general are not selfish. To help the people is the most desirable form of worship. Western economics theory can’t adopt the literature which can’t maximize utility by making money. This literature is actually about soul and heart and is essential for the ethical uplift of the society. Interest is the pivot of western system and is completely abolished in Islam as it exploits the destitute.