Islam's solution of the basic economic problems: the position of labour

Islamic economics has several contrasts with the capitalist and socialist systems. Among the issues that arise in a discussion of these economic systems are: the role of labor; a critique of capitalist institutions; instability in industry; the institution of interest; the dynamics of agricultural economics; and the distribution of wealth. Laissez-faire capitalism has failed to curb exploitation. Islamic economics has safeguards against instability that are not present in the entrepreneurial spirit of modern capitalism. No argument exists in favor of practice of interest it is not even consistent with modern economic theory. Although interest might not seem like a major issue for agriculture, it does in fact affect farmers and farming. Islam views worldly wealth to be relatively insignificant compared to the circumstances of the afterlife. While capitalism and socialism are at two unmanageable extremes, Islam should be considered a potential solution.