Lights of Guidance/Economics

From Bahaiworks

1860. Bahá’í System Prevents Extremes of Wealth and Poverty

"… Of course conditions in the East differ where the Countries are rarely industrial and mostly agricultural; we should have to apply different laws from the West and that is why the principles of the Movement strike at the root which is common to them both. ‘Abdu’l-Bahá has developed in various of His talks, which you will find in different compilations, the principles upon which the Bahá’í economic system would be based. A system that prevents among others the gradual control of wealth in the hands of a few and the resulting state of both extremes, wealth and poverty."

(From a letter written on behalf of Shoghi Effendi to an individual believer, October 28, 1927: Extracts from the Bahá’í Writings on the Subject of Agriculture and Related Subjects, a compilation of the Universal House of Justice)


1861. Should not Confuse Methods Explained by ‘Abdu’l-Bahá with Present Day Systems

"As to your fourth question, Shoghi Effendi believes that it is preferable not to confuse the methods explained by the Master with present systems. They may have many resemblances but also many points of difference. Moreover these general statements we have in the teachings have to be explained and applied by the House of Justice before we can really appreciate their significance."

(From a letter written on behalf of Shoghi Effendi to an individual believer, October 21, 1932: Ibid.)


1862. Regarding Problems of Ownership, Control and Distribution of Capital

"Regarding your questions concerning the Bahá’í attitude on various economic problems, such as the problem of ownership, control and distribution of capital, and of other means of production, the problem of trusts and monopolies, and such economic experiments as social cooperatives; the Teachings of Bahá’u’lláh and ‘Abdu’l-Bahá do not provide specific and detailed solutions to all such economic questions which mostly pertain to the domain of technical economics, and as such do not concern directly the Cause. True, there are certain guiding principles in Bahá’í Sacred Writings on the subject of economics, but these do by no means cover the whole field of theoretical and applied economics, and are mostly intended to guide further Bahá’í economic writers and technicians to evolve an economic system which would function in full conformity with the spirit and the exact provisions of the Cause on this and similar subjects. The International House of Justice will have, in consultation with economic experts, to assist in the formulation and evolution of the Bahá’í economic system of the future. One thing, however, is certain, that the Cause neither accepts the theories of the Capitalistic economics in full, nor can it agree with the Marxists and Communists in their repudiation of the principle of private ownership and of the vital sacred rights of the individual."

(From a letter written on behalf of Shoghi Effendi to an individual believer, June 10, 1930: Ibid.)


1863. Voluntary Sharing

"The Teachings of Bahá’u’lláh advocate voluntary sharing, and this is a greater thing than the equalization of wealth. For equalization must be imposed from without, while sharing is a matter of free choice."

(‘Abdu’l-Bahá: Peace More Than an End to War, Wilmette, p. 115)


1864. Spirit that Permeates Economic Life will Crystallize into Definite Institutions

"As you say, the Writings are not so rich on this subject and many issues at present baffling the minds of the world are not even mentioned. The primary consideration is the spirit that has to permeate our economic life and this will gradually crystallize itself into definite institutions and principles that will help to bring about the ideal conditions foretold by Bahá’u’lláh."

(From a letter written on behalf of Shoghi Effendi to the National Spiritual Assembly of the United States and Canada, December 20, 1931: Bahá’í News, No. 90, March 1935, p. 2)


1865. Social Inequality

"…social inequality is the inevitable outcome of the natural inequality of men. Human beings are different in ability and should, therefore, be different in their social and economic standing. Extremes of wealth and poverty should, however, be totally abolished. Those whose brains have contributed to the creation and improvement of the means of production must be fairly rewarded, though these means may be owned and controlled by others."

(From a letter written on behalf of Shoghi Effendi to an individual believer, January 26, 1935)


1866. "Equality is a Chimera!"

"Equality is a chimera! It is entirely impracticable! Even if equality could be achieved it could not continue—and if its existence were possible, the whole order of the world would be destroyed. The law of order must always obtain in the world of humanity. Heaven has so decreed in the creation of man."

(‘Abdu’l-Bahá: Paris Talks, p. 152, London, 1969 ed.)


1867. Wages

"… The Master has definitely stated that wages should be unequal, simply because that men are unequal in their ability, and hence should receive wages that would correspond to their varying capacities and resources. This view seems to contradict the opinion of some modern economists. But the friends should have full confidence in the words of the Master, and should give preference to His statements over those voiced by our so-called modern thinkers."

(From a letter written on behalf of Shoghi Effendi to an individual believer, December 26, 1935)


1868. Application of Spiritual Principles to Economic System

"… There are practically no technical teachings on economics in the Cause, such as banking, the price system, and others. The Cause is not an economic system, nor can its Founders be considered as having been technical economists. The contribution of the Faith to this subject is essentially indirect, as it consists in the application of spiritual principles to our present-day economic system. Bahá’u’lláh has given us a few basic principles which should guide future Bahá’í economists in establishing such institutions which will adjust the economic relationships of the world."

(From a letter written on behalf of Shoghi Effendi to an individual believer, January 25, 1936: Bahá’í News, No. 103, October 1936, p. 2)


1869. Profit Sharing Recommended to Solve One Form of Economic Problems

"No, Bahá’u’lláh did not bring a complete system of economics to the world.

"Profit-sharing is recommended as a solution to one form of economic problems.

"There is nothing in the teachings against some kind of capitalism; its present form, though, would require adjustments to be made."

(From a letter written on behalf of the Guardian to an individual believer, November 19, 1945: Bahá’í News, No. 210, August 1948, p. 3)


1870. Man Will Always Have to Toil to Earn His Living

"… Whatever the progress of the machinery may be, man will have always to toil in order to earn his living. Effort is an inseparable part of man's life. It may take different forms with the changing conditions of the world, but it will be always present as a necessary element in our earthly existence. Life is after all a struggle. Progress is attained through struggle, and without such a struggle life ceases to have a meaning; it becomes even extinct. The progress of machinery has not made effort unnecessary. It has given it a new form, a new outlet."

(From a letter written on behalf of Shoghi Effendi to an individual believer, December 26, 1935)


1871. Religion Alone Can Enable Man to Adjust the Economic Relationships of Society

"… By the statement 'the economic solution is divine in nature' is meant that religion alone can, in the last resort, bring in man's nature such a fundamental change as to enable him to adjust the economic relationships of society. It is only in this way that man can control the economic forces that threaten to disrupt the foundations of his existence, and thus assert his mastery over the forces of nature."

(Ibid.)


1872. A New Universal Attitude Needs to be Fostered—Based on Spiritual Verities

"The inordinate disparity between rich and poor, a source of acute suffering, keeps the world in a state of instability, virtually on the brink of war. Few societies have dealt effectively with this situation. The solution calls for the combined application of spiritual, moral and practical approaches. A fresh look at the problem is required, entailing consultation with experts from a wide spectrum of disciplines, devoid of economic and ideological polemics, and involving the people directly affected in the decisions that must urgently be made. It is an issue that is bound up not only with the necessity for eliminating extremes of wealth and poverty but also with those spiritual verities the understanding of which can produce a new universal attitude. Fostering such an attitude is itself a major part of the solution."

(The Universal House of Justice: The Promise of World Peace, pp. 10-11, Haifa, 1985)