of the Holy Quran The Analysis of Thrift Paradox from the Perspective

• Main Authors: Amir Khadem Alizadeh, Mohammad Safari
• Format: Article
• Language: fas
• Published: Imam Sadiq University 2013-10-01
• Series: تحقیقات مالی اسلامی (پیوسته)
• Subjects: consumption; quran; paradox of thrift; islamic economics
• Online Access: http://ifr.journals.isu.ac.ir/article_1647_6d6afa656cb906e1460d1e3efdce62e3.pdf
• ISSN: 2251-8290; 2588-6584

An important economic indicator in each community is the proper ratio between production and consumption. Meanwhile, one of the principles of conventional economics is the paradox of thrift, especially when we recognize the different aspects of conventional and Islamic economy. Based on this principle, there is the notion that individual savings rather than spending can worsen a recession, or that individual saving is collectively harmful. In other words, when saving exceeds spending, it can create harmful consequences such as when businesses don't earn as much and have to lay off employees who are then unable to save. Therefore, an increase in individual saving rate is believed to create a flattening or diminishing of the total saving rate. This is exactly where the challenge and paradox of thrift is raised. <br />This paper, through an analytical-descriptive method studies the Quranic teachings in the field of consumption and seeks the answer to the problem. The findings of this study demonstrate optimum consumption as “a model for optimal allocation of resources” and encourage "the increase of consumption in macro-level, for the marginal propensity to consume”. This happens as a result of charity and contribution measures in the form of <em>zakat, khums</em>, credit unions, etc. for shifting savings to investment and consequently creating financial flows in the economy.