production in a way that their original and external form remains unaltered and

Production in a way that their original and external

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production in a way that their original and external form remains unaltered, and which can hence be let or leased For example, lands, houses, machines etc. The share of Land is in form of rent
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Factors of Production in Islam The Factor of Production in Islam 3. Labor It can be defined as human exertion, whether of the bodily organs or of the mind or of the heart. This exertion thus includes organization and planning too. The share of Labor comes is in form of wages In the case of Mudarabah, Islamic mode of partnership, the compensation of labor is in the form of profit
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Factors of Production in Islam The Factor of Production in Islam Whatever "wealth" is produced by the combined action of these three factors would be primarily distributed over these three factor
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Factors of Production in Islam Socialism and Islam Socialism No private property Wealth distribution is only in the form of wages If the Socialist system is adopted and all capital and all land are totally surrendered to the state, The ultimate result is that a large number of smaller Capitalists, will be liquated and put the huge resources of national wealth at the disposal of a single big Capitalist - the state, which can deal with this reservoir of wealth quite arbitrarily, Thus, leads to the worst form of the concentration of wealth. Islam All the things that exist in the universe are in principle the property of Allah Himself. Then, the larger part of these things is that which He has given equally to all men as a common trust. It includes fire, water, earth, air, light, wild grass, hunting, fishing, mines, un-owned and un-cultivated lands etc., which are not the property of any individual, but a common trust. Every human being is the beneficiary of this trust, and is equally entitled to its use.
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Factors of Production in Islam Socialism and Islam Socialism It produces another great evil. Since Socialism deprives human labor of its natural right to individual choice and control Compulsion and force becomes indispensable in order to make use of this labor, It has a detrimental effect on its efficiency as well as on the mental health. Islam Islam has not chosen to put an end to private property altogether, but has rather recognized the right to private property in those things of the physical universe which are not held as a common trust. Islam has, thus, given a separate status to Capital and to Land, and has at the same time made use of the natural law of "supply and demand" too in a healthy form. Hence Islam does not distribute wealth merely in the form of wages, as does Socialism, but in the form of profit and rent as well.
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Factors of Production in Islam Capitalism and Islam Difference between the two systems are: 1. In Islam The entrepreneur, as a regular factor, has been excluded from the list of the factors of production, and Only three factors have been recognized, instead of four.
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  • Summer '19
  • Faisal Sawar
  • Capitalism, Capital Investment

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