Seeking Justice in the Midst of Inequality, Criticizing the Capitalist System and Offering the Concept of Islamic Economics

According to the author, there is a quite provocative view that in the family sphere, discussing money is much more awkward than discussing sex. Whether it is a form of family education or just small talk at the dinner table, it is almost untouchable how money should be controlled. This is confirmed by research from the deVere Group of 700 respondents, which found that 56% of people considered finances to be the most difficult topic to discuss, even surpassing other sensitive issues such as sex, politics, religion and health.

Perhaps this is where the roots of poverty in a number of Indonesian people come from. Indonesia’s population, the majority of which is made up of lower middle class economic communities, is certainly the main perpetrator of the above traditions. Unlike those whose economic background is above, financial education is the main knowledge that is passed on to their sons and daughters.

Again, this is not the author’s personal opinion, this is what Adam Ndou said in his paper entitled “Parental Financial Socialization and Socioeconomic Status.” In this paper, Senior Lecturer University of South Africa it concluded that parents with higher income/education taught more explicit financial teaching and use of tools (accounts, investments, small businesses) than lower income parents.

Ultimately the rich get richer, the poor get poorer. A socialist slogan that is still well preserved today. In fact, this slogan originates from the Industrial Revolution (1818-1883) which Marx referred to as Immiseration thesis (poverty theory). The author is not discussing people’s behavior, but in this article tries to read the modern financial system.

Differences in the Concepts of Capitalism and Islam

As someone who does not study economics, the author uses the help of artificial intelligence to understand the current global financial system. Based on the results of this discussion, the author concludes that the current world economic order is firmly rooted in the principles of capitalism. This encourages the author to conduct a comparative study between the capitalist system and the financial paradigm from an Islamic perspective. The results are as follows:

First, concept of property ownership. If capitalism is stripped down to its basics, there is one key word, namely individualism. In the perspective of capitalism, property is absolute property resulting from personal hard work. Because it is absolute property, its aim is single, namely accumulation. This is an indicator and colors the definition of success today. Simply put, the more money you have, the more successful you are.

The opposite is true in Islam framework of thinking towards money is quite radical to modern ears. Humans are not owners, humans are only managers (stewards/caliphs). The Qur’an very firmly states this in surah al-An’am: 12.

Say to anyone in the heavens and the earth, say to Allah…

It means: “Say (the Prophet Muhammad), “To whom does everything that is in the heavens and what is on the earth belong?” Say, “It belongs to Allah.”…

The implications of this difference in status are far-reaching. If someone feels like the absolute owner, of course they will feel free to use it. How to obtain how and for what is the owner’s decision, including hoarding as much as possible, is up to him. However, if you feel like you are just managing a trust, of course the question will always arise, “Does the original owner (God) agree with the way I spend this money?”

Status stewardship This makes money a deposit that must be accounted for. Wealth is not just a facility for life, but rather a trial or error slander. We often see how money can bring someone extraordinary goodness, but at the same time it can drag him into the abyss of moral destruction if he is trapped in excessive love. Islam sees wealth as the pillar that supports the lives of all humans, so it is not justified for individuals to destroy, squander or monopolize these assets just for their egoistic interests.

SecondThe next fundamental difference lies in how these two systems define economic problems. In conventional economics or capitalism, the main human problem is scarcity (scarcity). This theory, strongly influenced by Lionel Robbins’ definition in 1932, states that economics is a science that studies human behavior as a relationship between unlimited desires and limited natural resources. This view creates a narrative that the world is fundamentally deficient, so humans must continue to compete to secure their share.

Islamic economics, on the other hand, does not recognize the concept of scarcity. The basic belief is that God has created everything in the universe in the right size and sufficient to meet the needs of all His creatures. Economic problems, according to the Islamic perspective, do not lie in the lack of natural resources, but in human behavior itself, namely distributional injustice, greed and tyranny. Islamic economic figures such as Muhammad Baqir al-Sadr in his book Economy states that God has provided abundant resources, and the scarcity we experience is only the result of a system that allows exploitation by the strong against the weak.

The capitalist view equates needs (need) with desire (want to) is considered a fatal error in Islam. Human desires are unlimited, but basic human needs actually have a saturation point. For example, a person’s thirst will stop when he has drunk enough water. The problem arises when the modern economy is driven by an advertising machine that continually turns luxuries into new necessities, creating a never-ending cycle of dissatisfaction. In Islam, what must be curbed is human desire, not the exploitation of nature which is driven endlessly.

Thirdinvisible hand oppose social justice. Adam Smith, who is often called the Father of Capitalism, popularized the theory Invisible Hand—a belief that if everyone is allowed to pursue their own personal interests in a free market, then societal prosperity will automatically be achieved. This idea assumes that the market has a perfect self-correcting mechanism. However, in reality, this “invisible hand” often fails to prevent the widening gap between the rich and the poor. Capitalism allows individuals to obtain as much wealth as possible without intervention, as long as it works within the corridors of positive law, which often ignores aspects of morality and empathy.

In Islamic economics, the concept of welfare cannot be left to blind market mechanisms. The “hand” in question must be tangible in the form of social policies and justice institutions such as zakat, alms and waqf. The main goal of Islamic economics is to achieve falah—a concept of welfare that includes the dimensions of the world and the afterlife in balance. True prosperity is impossible to achieve without distributional justice. As stated by Muslim economists, justice in Islam does not only mean formal-legal, but substantial; where every individual has appropriate access rights to resources.

This is where the difference lies framework of thinking a stark contrast: in capitalism, helping others is a philanthropic option after personal needs are met; In Islam, helping others through zakat is a systemic obligation and is attached to the right of ownership itself. Zakat is a wealth transfer mechanism designed to clean up wealth and ensure that economic circulation does not only revolve around the elite.

Fourth, psychology of happiness. The success of an economic system should also be measured by the level of mental well-being of the people who live it. Modern capitalism, with its strong consumerist drive, often traps humans in what is called “hedonic treadmill.” This is a psychological phenomenon in which a person continually pursues new material goods in the hope of finding happiness, but that happiness quickly fades once the item is owned, forcing them to search for their next “dose” of consumption.

Recent research data shows the worrying impact of this materialistic lifestyle. Studies published in 2024 and 2025 reveal that individuals with high materialism values—that is, those who make possession of goods central to their identity and happiness—tend to have lower levels of life satisfaction, as well as a higher risk of anxiety and depression. Materialism encourages people to always compare themselves with others, creating chronic feelings of envy and dissatisfaction.

Islam offers an antidote through this concept Satisfied (feel enough) and hermitage (not tied to the world). Canaan This does not mean being passive or lazy, but rather an intelligent attitude in managing expectations and being grateful for what is in hand while still making reasonable efforts. This attitude frees the soul from social pressure to always “follow the trend” which often drains pockets and inner peace.

Research in Zhengzhou, China in 2025 even found that parental materialism can be a family stressor that is transmitted to children, damages the quality of family relationships, and causes psychological disorders in the next generation because children are seen as “social accessories” to be compared with other children. This is clear proof that framework of thinking Faulty economics can destroy the smallest units of society.

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In this final section the author would like to quote a wise expression from an American entrepreneur, writer and motivator, named Jim Rohn, he said this, “If you took all the money in the world and divided it equally among everyone, it would immediately go back into the same pockets.” If all the money on earth were collected and divided equally among all the people on earth, then the money would go back into the same pockets. Quote This simple shows that the main problem is framework of thinkinghabits, and the individual’s ability to manage them. Without change and awareness, the dream of prosperity will only be a momentary pause before the same inequality occurs.

If we move on to Islamic studies, in the author’s opinion, the conclusion in this article is that Islam does not recognize the existence of such social inequality. Islam fully recognizes this inequality. The existence of the poor and the rich is the power of heaven and in the Qur’an this inequality must be regulated. These rules are justice. Justice here is not an effort to erase differences, but rather to ensure that these differences do not give rise to oppression and marginalization of the weak. Therefore, sharia instruments must be present in the economic system, as a mechanism to maintain social balance in the reality of inequality.

Also Read: Questioning the Position of Women in Islamic Economics

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Author: Al Fahrizal

Editor: Sutan