PEMIKIRAN EKONOMI IBNU KHALDUN DALAM PERSPEKTIF PHILOSOPHY OF ECONOMIC SYSTEM CAPITALIST

Summary

This script compares the economic theories of two great thinkers: Ibnu Khaldun and Adam Smith. Ibnu Khaldun, born in the 14th century, emphasized the role of labor in economic value, the influence of supply and demand on market prices, and the necessity of government intervention for justice and economic prosperity. In contrast, Adam Smith, a 17th-century economist, promoted the idea of a natural market price driven by individual freedom and minimal government interference. Both thinkers recognized the importance of labor and specialization, but their views on government involvement in economics differed significantly.

Takeaways

• 😀 Ibnu Khaldun was born on May 27, 1332, in Tunisia and passed away on March 16, 1406, in Cairo, Egypt, at the age of 74 or 76 depending on the calendar used.
• 😀 Adam Smith was born on June 5, 1723, in Kirkcaldy, Scotland, and died on July 17, 1790, in Edinburgh at the age of 67.
• 😀 Both Ibnu Khaldun and Adam Smith contributed significantly to economic thought, particularly in understanding market mechanisms and the value of labor.
• 😀 Ibnu Khaldun emphasized that the development of a society leads to increased prosperity, influenced by supply and demand, which in turn impacts the stability of prices.
• 😀 Adam Smith proposed the theory of 'natural price', which arises when individuals act freely in a society with the liberty to produce and exchange goods.
• 😀 Both thinkers saw labor as a crucial source of value, with Ibnu Khaldun stressing that labor is essential for generating wealth in an economy.
• 😀 Smith also emphasized labor as the primary measure of value, aligning with Ibnu Khaldun's view on the importance of labor in economic systems.
• 😀 Ibnu Khaldun discussed the need for cooperation and specialization in work as key to human survival and economic success, similar to Smith's theory of the division of labor.
• 😀 According to Ibnu Khaldun, the state’s role is to enforce laws and ensure prosperity, while Smith believed in minimal government interference to preserve individual freedoms in the market.
• 😀 The key similarity between Ibnu Khaldun and Adam Smith was their belief that market prices are formed through natural processes of supply and demand, and both regarded labor as central to value creation.

Q & A

Who was Ibn Khaldun, and when was he born?

Ibn Khaldun was a prominent historical figure born on May 27, 1332, in Tunisia, during the early days of Ramadan in 732 Hijri.

Where did Ibn Khaldun travel, and where is he buried?

After spending much of his life in North Africa, Ibn Khaldun traveled to Egypt in 1383 CE. He died on March 16, 1406, and is buried in the Sufi cemetery outside Bab Al Nasr in Cairo.

What is the key aspect of Ibn Khaldun's theory regarding market mechanisms?

Ibn Khaldun explained that the relationship between supply and demand significantly influences the prices of goods. As a community grows and develops, the demand and supply dynamics shape the stability of prices.

How did Ibn Khaldun view the role of labor in economic value?

Ibn Khaldun emphasized that labor is a crucial source of value. He believed that without labor, neither capital accumulation nor income generation would be possible.

What is Adam Smith's perspective on the formation of prices?

Adam Smith introduced the concept of the 'natural price,' which he argued is the price that naturally emerges when market forces operate freely, without external interference.

How do Ibn Khaldun and Adam Smith's views on labor and value compare?

Both Ibn Khaldun and Adam Smith view labor as central to value creation. They each recognized that labor is both the cause and the measure of value in the market.

What is the role of specialization in work according to Ibn Khaldun and Adam Smith?

Ibn Khaldun highlighted the necessity of cooperation and specialization in various fields for the survival and prosperity of a community. Similarly, Adam Smith argued that the division of labor increases productivity and encourages specialization, allowing people to focus on tasks that suit their skills.

How do Ibn Khaldun and Adam Smith differ in their views on government involvement in the economy?

Ibn Khaldun believed that justice in the economy requires strong governance and laws to regulate market activities and ensure fairness. In contrast, Adam Smith, a libertarian, argued for minimal government intervention, claiming that the market should operate freely, with government only stepping in to maintain order.

What is the main similarity between Ibn Khaldun's and Adam Smith's economic theories?

Both thinkers believed that prices are determined naturally through the forces of supply and demand. They also agreed that labor is the fundamental source of value and that human cooperation and interaction are essential for economic prosperity.

What was the key difference in how Ibn Khaldun and Adam Smith approached the concept of justice in the economy?

Ibn Khaldun's approach to economic justice involved a complex relationship between laws, government, and market dynamics, whereas Adam Smith focused on minimal government intervention, advocating for a free-market system where justice is maintained through natural market processes.