# What Islam Reveals About Socialism and Capitalism | Focal Point with Imam Tom Facchine

**Author:** Tom Facchine
**Series:** Imam Tom Live
**Published:** 2025-11-12
**YouTube:** https://youtu.be/dznQ7_b3e4E
**URL:** https://yaqeeninstitute.org/watch/series/imam-tom-live/what-islam-reveals-about-socialism-and-capitalism-focal-point-with-imam-tom-facchine
**Topics:** History, Politics & Practical Theology

## Description
Islam offers guidance for every aspect of our lives, but where does it fit in a political world shaped by capitalism and socialism? Can we navigate politics as Muslims when neither system reflects our values? Imam Tom takes a deep dive into both ideologies and explains Islam’s stance on them.

## Transcript
**[0:00]** If someone calls themselves a socialist, what do you do with that? What about capitalism? What does Islam have to say? What can we take from them? What can't we take from them? How do Muslims navigate political situations? Maybe we're a minority like in the US and

**[0:17]** we see that the candidates espouse different values from our own. We've seen Zohran Mamdani who calls himself a democratic socialist, similar Bernie Sanders, a democratic socialist and many Muslims have been inspired by some of the policies that they've advocated for and especially on Palestine. But there's a larger conversation that we want to tackle

**[0:34]** here today. Is socialism Islamic? Is it anti-Islamic? Of course, it's not that simple. If we want to understand what Islam says about socialism, about capitalism, we need two things. First, we need to properly understand what are its tenets and its assumptions and how does it work. And we also need to understand Islam itself.

**[0:53]** So today we're going to talk about socialism and it just so happens that you can't talk about socialism without talking about capitalism. So we'll try to get two birds with one stone. The story of socialism is the story of revolution. It is people experiencing the horrible consequences

**[1:08]** of capitalism and trying to figure out a way to build a better world. Did they succeed in doing that? Did they create a monster that was worse than the first problem that they faced? By the end of this episode, you'll have an answer to that. We can't overestimate

**[1:23]** the harms of capitalism. Capitalism is an economic ideology based off of self-interest, the idea that you can harness self-interest and profit motive in order to balance everything out and then it will justly allocate and distribute resources and promote innovation. And that

**[1:41]** will elevate the standard of living based off of these really not good human tendencies, vices, even greed and selfishness and even competition in certain places. That capitalism is based off of owning, accumulating, maximizing. Right. If you can make more, you should make

**[1:59]** more. It shouldn't take a genius to see the problem with this method of organizing society and organizing an economy. And certainly people started experiencing the harms of unbridled capitalism to a point where they couldn't ignore it any longer. So imagine it's the

**[2:15]** early 1800s. If you're in Europe, especially Western Europe, things are starting to industrialize. UK is pretty much ground zero for industrialization and you're starting to notice some negative consequences. And we'll run through some of the most common ones, especially the ones that socialists pointed out. We'll go through five. OK, so five problems with capitalism.

**[2:34]** Again, lived capitalism, real lived experience that could not be ignored, that provided the motivation for theories like socialism and movements that came after. One, the accumulation of capital leads to inequality. It was not a great place to be in the slums of England

**[2:50]** in the early 1800s. There were forms of slavery that weren't maybe even formal slavery like Chateau slavery, but de facto slavery such as wage slavery and debt slavery. If you were a factory worker, you could not run away from your factory. Sometimes you'd be locked into

**[3:06]** the building, you'd be chained into your seat, you wouldn't be allowed to use the bathroom. And if there was, God forbid, a fire, then you were just going to go down with the factory. Number two was environmental degradation. Environmental degradation by capitalism cannot be ignored. The clear cutting of forests, the erosion that took place from the control

**[3:23]** of rivers, the pollution from industrial processes. It can't be overstated. What is the most polluted lake in the United States of America? Think. It's actually the Onondaga Lake in Syracuse. OK, it's the lake in Syracuse, New York, the most polluted lake in the United States in

**[3:41]** the 1880s. OK, a number of industries, they were discharging all their waste there. You're talking about mercury, talking about salts and ammonia, organic compounds, PCBs, pumping them into the lake decade after decade after decade. This is before oil. This is before automobiles. This is before plastics. The lake today is completely unusable. It's completely

**[4:02]** you can't swim in it. You can't fish in it. You can't do anything in it. This is the story of when companies just again for profit motive, for greed, for competition, they just dumped it. You didn't look where you dumped it. You just dumped it. That was something that was

**[4:17]** ubiquitous and that people were living in the consequence of. The third one is alienation, a concept that Marx articulated called alienation. And he meant a few things by it. One, alienation from the product. Imagine 500 years ago, maybe your family made cabinets. All right. And

**[4:33]** you were really, really good at cabinets. This was artisanal cabinets, right? Like you do it. You have a certain way of doing it. You've got a certain technique and techniques and methods that you've passed down from generation to generation. And you somebody can come and

**[4:48]** they can look at a cabinet and say, hey, this was made by you or your family. Right. That method of production is gone. And that method of production, you are able to express your creativity. You're able to feel proud about your work. You're able to feel a sense of

**[5:04]** dignity and self-respect because you can do something that other people can't do. Right. Well, industrialization and capitalism kill all of that because now you're alienated from the product. Workers don't own their tools or the things that they use to produce the

**[5:19]** final product anymore. You're talking about a factory where you press a button or where you turn a screw. The product that you make, it's sold for profit and the workers don't really have a say in how it's used or what it's used for. You get cash and you go home. God forbid immigrants coming into the country, then your wages are going to go down because

**[5:37]** now there's more workers. You're replaceable. They're replaceable. You don't have as much solidarity or feeling or fellow feeling towards your other fellow workers as you used to. And then the last one is alienation from yourselves. Right. The overall alienation that you feel from a human being. You're robbed of your individuality. The person who works at, you

**[5:55]** know, just hanging up clothes or they work at Walmart or whatever. No disrespect. You've got to hustle. You've got to make money. But we're saying that the nature of the work is not dignified, that you don't actually feel that sense of self-satisfaction, individuality and creativity in the work. Maybe you have it in other ways and you're able to achieve

**[6:13]** it in other ways, but you're not getting it through your work anymore. Point four is what Marx called commodity fetishism. That just simply means that products become status symbols. They take on value that has nothing to do with what it took to make that product or its use. A good example of this is diamonds. Right. OK. Yeah. It's one of

**[6:32]** the hardest materials that's known, but people don't use diamonds for cutting unless you're a contractor. Use diamonds for jewelry. In fact, the few companies that control the diamond industry actually suppress the supply to artificially elevate the prices. Marketing and advertising

**[6:48]** has sold this idea of like diamonds are forever, etc., etc. in order for you to put more value into diamonds than they're actually worth. So that's an example of what Marx would call commodity fetishism. And the last point is capitalism is wasteful. You know, on the books, people say capitalism

**[7:04]** is so efficient. The socialists that experienced the negative consequences of capitalism are like, no, it's not. Capitalism, extremely wasteful. It's not efficient. And it's even not rational. Capitalists or people who are proponents of capitalism will say that you need to satisfy demand and this one makes their money by satisfying the demand and then

**[7:22]** everybody gets what they're looking for. But that's not what actually happens, that if your only concern is making money, you're actually going to go out of your way to manufacture demand or to generate demand out of nothing. We see this in the market today with planned obsolescence. If you buy a car, you buy a dishwasher or a washing machine in twenty

**[7:40]** twenty five. That thing has a shelf life. It's going to break down maybe five, ten years compared to if you bought it during the 80s when everything was made of like solid metal. That thing still lasts. It's still around, right? Like the Toyota Cressida that you see driving around Medina, right? The things have like five hundred thousand miles on them and

**[7:59]** they're still going. So much of our supply chain is built around the automobile. There's actually a disincentive to move on from it or to innovate something else, a different way of transportation that's better for the environment. It's more humane. It kills less animals, whatever. You've got roads, you've got gas station tires, you've got the parts

**[8:14]** industry, all these other subsidiary industries that are tied to the car industry that actually creates stagnation that they actually collude together to keep things like some other type of vehicle from coming onto the scene. So all of these things and more people did live very, very harsh consequences from capitalism at the heyday of capitalism. It produced a

**[8:34]** generation or two of thinkers and writers that rebelled against that. And one of the main ideologies that they articulated in order to rebel against that was socialism. Or we can say Marxism. Here's what you need to know about Marx. Historical materialism. He treated history as a science, that history moved in formulaic ways, that you could

**[8:53]** predict what was going to happen. And his whole big thing was stages of history, that history is really about the conflict between socioeconomic classes, the working class versus the capitalist class. And that he observed something he observed as we switched

**[9:09]** from the artisanal model of production or mode of production to a mass produced model. And things are now being produced in factories and you're gathering workers and urbanization is happening. So you're getting more and more workers that are concentrated in a smaller and smaller space. Marx was like, well, there's going to come a point where

**[9:26]** the workers look around and say, why don't we own the factory? Why don't we control what our product goes to? And so Marx essentially says that when that happens, that's the socialist revolution. The socialist revolution is going to be when the workers realize and unite and then overthrow the capitalists and then they're going to take control of the

**[9:45]** means of production. And on the other side of the socialist revolution is communism. That's how he saw history as unfolding. And he said it's inevitably going to happen this way. He wasn't like saying that it would be just good. He's like it is going to happen that way. That's his historical materialism and his determinism.

**[10:02]** In fact, he was so deterministic that he spawned what would later be called scientific socialism, that people thought, again, that things were formulaic, even human needs. If you get a little bit downstream to Soviet style communism, when they had a centrally

**[10:17]** planned economy, they thought that they could plan out how many calories do people need, how much recreation do people need, and you could just put it on a spreadsheet. Right now, this sounds crazy to us and it's very inhuman. Right. But this is what they thought. And this was part of the idea, at least Marx's idea, for how society could be done better,

**[10:37]** that some of the people who were first critiquing capitalism were again, they were saying that socialism is more efficient or would be more efficient. Now, historically, it's important to realize that this movement of socialism and communism became quite popular.

**[10:52]** These ideas had a lot of purchase. People were very, very inspired across the world by some of these ideas, again, because they had experienced the excesses or the natural consequences of capitalism left to run amok. Eventually, of course, it fragmented due to ideological differences.

**[11:09]** And we'll talk about some of those differences in a second. Now, what are some of the controversies and contestations within socialism, communism, Marxism, before we get to what Islam has to say about it? One of the fundamental controversies is what about the state?

**[11:24]** Can you use the state to affect the socialist revolution or not? Is it a viable tool or is it only going to do damage? This caused the split between what they call the authoritarian versus the libertarian socialists or communists. Basically, are you top down or bottom up?

**[11:41]** And the top down went out. They expelled the anarchists, the bottom ups, in 1872 from the first international. And then later, figures like Trotsky lost out to Stalin, whereas like Stalin was everything's going to come top down. Everything's going to come from the state.

**[11:57]** Culture is going to come from the state. News, economy, planning, everything's going to come from the state. Someone like Trotsky was like, actually, no, you have to let the people do that. Like from bottom up. He was sidelined. And you know what happens if you were sidelined by Stalin. The next major controversy, and this is what brings us back around to Bernie Sanders and

**[12:15]** How do you achieve socialism? Do you achieve it by revolution or by reform? The revolutionary socialists can be broken down into two main types. The first is sort of this hands off notion that, again, like historical determinism, this is going to happen hands off, like just let it happen and then it will

**[12:34]** spontaneously occur. And then you have Lenin. And Lenin was someone who was more about a hands on model of how to achieve a socialist revolution, saying that there has to be a revolutionary vanguard, a small group of people who are class conscious, someone who goes into the factory and points

**[12:49]** out to the workers is like, hey, have you guys ever realized that all of you have more power than the capitalist who owns the machines and you guys don't own anything? And right. That kind of ignites and accelerates this socialist revolution. The reformists, on the other hand, believe in democratic processes.

**[13:04]** They don't believe that these things should be done through an overthrow or through a takeover or through a dismantling of the state. They believe that you stand in elections. They believe that you run for office. They believe that you get you participate in the parliamentary system and then you move

**[13:19]** on with your policies there. And it's important to note that democratic socialists are like one step left of like FDR type New Deal Democrats. But they do they are committed to the electoral process. And this is where Mamdani and Bernie Sanders reside in their democratic socialism, that

**[13:39]** they believe in worker owned means of production and economic organization and things of this nature. But they believe in achieving it in a parliamentary electoral way. Is it Islamic? That's what everybody wants to know. And the short answer is that no, none of these things are Islamic.

**[13:56]** Capitalism is not Islamic. Socialism is not Islamic. And communism isn't either. But maybe not for the reason that you think you might be used to thinking about these things and be thinking about the details, the techniques. Like how do you distribute resources and how do you do this and price controls and

**[14:11]** supply and demand and command economies and these sorts of things don't even go that far. The very, very first thing that differentiates Islam from all of these manmade ideologies is that we know that God is a reality.

**[14:27]** And that simple fact changes the way that we look at everything, the way that we look at freedom, the way that we look at autonomy, the way that we look at economy and rights and everything else. For example, we don't believe that we are in complete ownership of ourselves. If you read some of the theorists of capitalism, but also of socialism,

**[14:45]** self-ownership, if you read Locke, for example, just go to Locke. Self-ownership is a huge fundamental building block of the entire theory that we are masters of ourselves, that the territory, right, that the borders of what you can consciously control. That is your territory, you are the sole sovereign over, and therefore you get to do with that what you want, and therefore by extension, if you own something, you can do over that what you want.

**[15:09]** That's what capitalists would say. We don't believe that we own ourselves in Islam. Actually, quite the opposite, Allah says in Surah Al-An'am, قُلْ إِنَّ صَلَاتِي وَنُسُكِي وَمَحْيَايَ وَمَمَاتِي لِلَّهِ رَبِّ الْعَالَمِينَ Allah tells us to say, it's a command to say it,

**[15:24]** certainly, my prayers and my rights and my living and my dying are for Allah subhanahu wa ta'ala, the Lord of all the worlds. We are not truly sovereign. Allah subhanahu wa ta'ala is the only one that is truly sovereign, and even our bodies and our lives and our time and our talents are on loan from Allah subhanahu wa ta'ala.

**[15:43]** They are given to us as a trust, and because it is a trust, that communicates a sense of duty between us and our creator, that we have responsibility to use it in a certain way. Under capitalism, you don't have any such duty. That's not true in Islam.

**[15:58]** You can't do whatever you want to yourself. You can't do whatever you want to your money. You can't do whatever you want. You have certain duties and guidelines that you have to abide by because these things are given to you from the creator. So we see that it's a fundamental difference, a fundamental difference to recognize and treat as a reality,

**[16:16]** the creator, or to ignore it, or to act as if such a recognition is not important. Some people will say, oh well, you know, whether you believe in God or not, it really, you know, your economic theory is immaterial to that. No, no, it's actually completely determined by that.

**[16:32]** That the most important distinction you can make between two human beings is someone who believes in God and someone who doesn't. Someone who recognizes that God is a reality and somebody who chooses to ignore that reality. The second main point, again, fundamental point that demonstrates Islam being completely different from these theories and ideologies is the unseen.

**[16:52]** That we recognize that there is an unseen realm. Capitalism, socialism, communism, they are all materialist. One of the first characteristics and qualities of a believer that Allah SWT points out in the first page of Surah Al-Baqarah,

**[17:08]** that the believers, the pious, the people who are aware of Allah SWT are people who believe in the unseen. And that's very interesting because when you get into the unseen, then you realize that there is no fungibility.

**[17:24]** Like the capitalists would believe that every dollar is not like every other dollar. Every second is not like every other second. That there's barakah. Allah SWT can bless things. He can also take that barakah away. And this is very, very different also than the self-interest of capitalism.

**[17:41]** We don't believe that self-interest is going to save us and greed is going to save us. That because we believe in the unseen, because we treat Allah as a reality and we recognize that duty that we have, we know that there are limits. And so you'll find that if you go deep into what Islam permits and prohibits when it comes to economy,

**[17:59]** you'll find some things that look like socialism and some things that look like capitalism. When it comes to socialism, you'll find that Islam has a concept of the commons. Grazing lands that are held in common by multiple people. There are public goods such as excess water, excess fuel, and the like.

**[18:16]** There are institutions like zakat, which is wealth redistribution, and sadaqah, and even loans are mutual aid. They're not commodified loans. The idea of qard is a non-commodified mutual aid loan within Islamic law.

**[18:31]** But that doesn't mean that Islam is socialist. You can go to the other side and you can see that Islam is also not capitalist. We don't believe in fixing prices. The Prophet (ﷺ) was asked explicitly about fixing prices and he said no.

**[18:46]** It's like Allah subhanahu wa ta'ala is the one who is determining the prices. We also don't believe in a monopoly or cornering the market on something just to artificially raise the prices. These are exploitative practices that we don't condone. We also don't adhere to socialist or communist conceptions of need.

**[19:04]** You'll hear from each according to his ability to each according to his need. Well, what does a man need? What does a woman need? What does a human being need? If you have a materialist understanding of who a human being is, then you're going to miss things about what a human being needs.

**[19:19]** Men cannot live on bread alone. People need guidance. People need da'wah. People need worship. They need connection with Allah subhanahu wa ta'ala. And we also don't subscribe to some of the popular socialist notions of eat the rich or vilifying all rich people.

**[19:34]** Some people ask, can billionaires exist? Well, theoretically, it's possible. Now, that has some important caveats to it. First of all, that money can't be taken through exploitation. If you look at the billionaires today, I don't know that you could find a single one that hasn't made their wealth off the backs of somebody else in an exploitative way.

**[19:53]** Allah knows best. But we also don't have this attitude of eat the rich that it's just inherently evil to be a rich person if it is done properly, if someone is fearing Allah and how they make their money. Some of the companions were very wealthy. Abu Bakr was wealthy.

**[20:08]** Uthman was wealthy. Sa'd ibn Abi Waqas was wealthy. And when that wealth was utilized for Allah's cause, when it was doing the things like buying the well, when Uthman bought the well, then it was actually a tremendous asset. So we don't vilify people based off of this thing alone.

**[20:26]** Are they using their money for good or are they not? Allah subhanahu wa ta'ala told us that he has already determined what your rizq is. So we can't necessarily categorically hate on somebody or vilify them because Allah's will was done and that person received the rizq that Allah subhanahu wa ta'ala determined for them.

**[20:43]** We also differ in what we consider a success. And I think that that's really, really one of the fundamental things you look at capitalism or socialism or anything. What is the socialist utopia? What is the capitalist utopia? And how do they differ from Jannah?

**[20:58]** How they differ from even a sense of khilafah, of the best that we can do on earth, which is when Muslims are taking care of their responsibility to manage the creation in the way that Allah subhanahu wa ta'ala wants it to be managed. People need more than just their bellies filled.

**[21:15]** They need a lot more than that. They need honor. They need dignity. They need guidance. They need connection. They need spirituality. They need worship. They need the divine. And so at the end of the day, socialism and capitalism fall short because they misunderstand the nature of reality and the nature of human beings themselves.

**[21:32]** There will always be something missing if you don't account for God or the human need to worship God. Constructing systems of economy and politics that ignore these realities, their recipes for disaster.

**[21:47]** At the end of the day, no one knows you like your creator does. So the best thing is to follow the guidance that the creator sent.

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- [How Colonialism Hijacked the Muslim World | Focal Point with Imam Tom Facchine](https://yaqeeninstitute.org/watch/series/imam-tom-live/how-colonialism-hijacked-the-muslim-wor-focal-point-with-imam-tom-facchine.md)
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- [How Music Impacts Your Brain | Imam Tom Weekly](https://yaqeeninstitute.org/watch/series/imam-tom-live/how-music-impacts-your-brain-imam-tom-weekly.md)
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- [The Secret Cost of Individualism | Imam Tom Weekly](https://yaqeeninstitute.org/watch/series/imam-tom-live/the-secret-cost-of-individualism-imam-tom-weekly.md)
- [The Dark Truth About Secularism | Imam Tom Weekly](https://yaqeeninstitute.org/watch/series/imam-tom-live/the-dark-truth-about-secularism-focal-imam-tom-weekly.md)
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- [Why Don't Muslims Just Leave? | Imam Tom Weekly](https://yaqeeninstitute.org/watch/series/imam-tom-live/why-dont-muslims-just-leave-imam-tom-weekly.md)
- [Will Celebrity Muslims Save Us? | Imam Tom Weekly](https://yaqeeninstitute.org/watch/series/imam-tom-live/will-celebrity-muslims-save-us-imam-tom-weekly.md)
- [Trump Wants to Take Over Gaza | Imam Tom Weekly](https://yaqeeninstitute.org/watch/series/imam-tom-live/trump-wants-to-take-over-gaza-imam-tom-weekly.md)
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- [The Islamic Cure for Overconsumption | Imam Tom Weekly](https://yaqeeninstitute.org/watch/series/imam-tom-live/the-islamic-cure-for-overconsumption-imam-tom-weekly.md)
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- [Live Revolution: The West Rallies for Gaza | Imam Tom Live](https://yaqeeninstitute.org/watch/series/imam-tom-live/live-revolution-the-west-rallies-for-gaza-imam-tom-live.md)
- [Biryani Diplomacy: The Illusion of Political Influence & the "Flour Massacre" | Imam Tom Live](https://yaqeeninstitute.org/watch/series/imam-tom-live/biryani-diplomacy-the-illusion-of-political-influence-and-the-flour-massacre-imam-tom-live.md)
- [Unveiling Truths: Aaron Bushnell, NYT's Agenda, & Stopping Military Aid to Israel | Imam Tom Live](https://yaqeeninstitute.org/watch/series/imam-tom-live/unveiling-truths-aaron-bushnell-nyts-agenda-and-stopping-military-aid-to-israel-imam-tom-live.md)
- [What Will Ramadan be Like in Rafah? A Conversation About Sha'aban and Leadership | Imam Tom Live](https://yaqeeninstitute.org/watch/series/imam-tom-live/what-will-ramadan-be-like-in-rafah-a-conversation-about-shaaban-and-leadership-imam-tom-live.md)
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