Originally Posted by mhmmdkashif

Well you guys seem to be straying from the topic too much. The core of the topic is under Islamic indoctrination, no matter how you look at it, building up economies and pursuing economic interests is secondary or not important target, the primary objective of an Islamic state is protection of faith and faithful and furtherance of cause of Allah . How could this be achieved, through a democratic political system or a caliphate??? Evidence suggests that Muslims are not generally happy with democratic systems because it fails at the primary objective laid forth for an Islamic state by the religion itself, it rather focuses too much on the non important matters of economy which religion fears will take people away from faith and make them materialist (dunya ki muhabbat ). So how can democratic system become a choice of those Muslims who are vying for caliphate??

Originally Posted by Buddha

Malthus example was about food, it was an exception but that example could not refute scarcity. We're going to run out of gas in the next 20 years. How plenty is that resource? Radio spectrum for mobile communication. How plenty is that? Land will not go away? What does it even mean? Take example of real estate. How plenty is real estate from downtown? Mall Road or Gulberg? A shop down there will be best for business but the space is limited. More buyers will skyrocket the price of real estate. Inflation again?

if there is scarcity which there was and is, then you need to increase efficiency and that happened. How do you presume we efficiey now?


How will that happen?

farm inputs are machinery, fertilizer and seed. At zero rate it will be easier to get loans. The bank will not provide loans and will only provide loans if they share profit and loss. The demand for food gradually increwses with population sosobagriculture will always be a profitable venture


Both matter. A large amount with more purchasing power shows it's a big economy. And a large amount of money circulating that has less purchasing power shows that the currency is inflated which is not much use.


have you ever heard of the clasical dichotomy?


there is no way to determine that a venture will always be profitable, no guarantees.
But who will issue those loans? With zero interest rate no one will have an incentive to issue loans

That is the point. Profit and loss should be shared. Presently it is unfair to the borrower. And if the borrower makes profit it iw unfair to the bank.
The one with wealth will issue the loans on profit loass sharing basis.

People won't save because there will be no incentives to save. Their savings are used to lend borrowers by investment banks/financial firms. Jab savings hi nahi hongay to loan kesay finance hongay??

S The saving will become part of the investment steam na bhai jan.


Trade cycle hi nahi rahay gaa.. downward spiral zarur hoga...

Will the demand for necessaries go down to zero? No. So the economy will attain a long run stable equilibrium. Initially might be a downward soiral but that will happen only once. Afterwards it will be up up and awy.


Imports will decrease when currency is depreciated and there is inflation. Since you have accepted there will be inflation you might as well check out the harms done by inflation esp. to the poor and middle class.
but supply will increasebto take advantage of the increased prices so inflation will become constant in the long run too.

If inflation is not to go beyond a certain limit, how is that controlled? Monetary policy! And how is monetary policy controlled? Primarily by controlling interest rates. By fixing it at zero how is Government going to control inflation and keep it beyond a certain limt
monetary policy is not the only way to check inflation. Increasing supply is too. Monetary policy is a short run solution. Supply side efonomics is a permanent one. And it is monetary policy which to control inflation increases unemployment

Originally Posted by Jessica Lorenzo

this forum is too complicated.. i am not getting its features

Originally Posted by Gypsified

I still don't understand what you mean by 'voluntary'. What does it mean that legislature is voluntary? Secondly, it still does not answer any of my questions. Whether voluntary or not, who is to elect it and how? You do need some kind of consensus and mechanism for the working of legislature, what is that? And what does it mean that legislature does not have any interest in passing or annulling of laws? Some historical example would help.