Abstract
Today global economic system practiced is commonly derived from Western thought and civilization. A lot of research has shown that this modern economic system unsuccessful in achieving economic goals, moreover this system produce a negative effect as causes of various economic problems, such as crisis, inequality distribution, poverty, and war in various countries. The matter then leads us to find what exactly source of the problem is. By using qualitative analysis with content analysis technique, this paper attempt to identify two points related to economic theory and problem. Firstly, does the economic problem linked to the economic theories itself or by human behavior? Secondly, does economic system, theory or ideological failure? This study argues that economic theories closely related and unseparated to ideology or religion matter which has develop the human perspective on how to solve the economic problem. This paper designed also to realign the contemporary economic system and their economic theory compared to the Islamic economic system based on Tawhid. This study found that the lack of fundamental ethical norms, political economy, morality and the pursuit of unbridled self-interest, is the main problematic issues and cause of the economic problems as the findings. The implication is that the economic system should adopt Tawhidic system as an answer and solution of human economic phenomenon. DOI: 10.5901/mjss.2016.v7n2p90
Highlights
The phenomenon of economic failure cannot be avoided by all countries
The West economic system has created a serious problem; it is shown that the system has a lot of questions for the world economy
It can be concluded that the capitalist market economy does not work exactly as economic engines
Summary
The phenomenon of economic failure cannot be avoided by all countries. This indicates an error has occurred in the global economic system. The main topics of economic theory such profit-maximization as the derivatives of the value of utility maximization, or the pursuit of self-interest, has become longstanding controversy These attributes are believed bring into being a good society based on one group critics, because they things the self-interest and profit-maximization is only possible way to achieve a prosperous economy that make people to leave from the poverty. They believes in, only the power of the invisible hand which can controls self-interest in a suit place, so can achieves the best outcome for society (Gaudenz et al, 2011). Through the content analysis approach this paper try to review the basic postulate of the principle of modern economic system with its various paradigms in explaining Western economic system and the various factors that have brought to the cause of the economic crisis, know definitely impress and critics to the failure of the capitalist economic system, in order to achieve an economic revival in the short term and to create prosperity as development goals in long term
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