Muskalism Won’t Fix a Broken System: Time to Rethink Capitalism

President-elect Donald Trump has appointed Elon Musk, CEO of Tesla, and Vivek Ramaswamy, a biotech entrepreneur and former presidential candidate, to lead a new initiative called the Department of Government Efficiency (DOGE). The department aims to slash bureaucracy, reduce waste, and cut the federal government’s $6.5 trillion spending. This ambitious plan, which Trump likened to the Manhattan Project, is set to focus on structural reforms to streamline government operations by 2026. 

However, the US economy is in deep trouble. The federal government’s debt now exceeds $33 trillion, and interest payments alone consume a significant portion of the national budget, leaving less for vital investments in schools, healthcare, and infrastructure. Politicians often propose budget cuts as a solution, but trimming around the edges cannot address the systemic flaws at the heart of the issue.

The problem lies in the structure of the financial system itself, built on the principles of debt-driven capitalism. This framework prioritises profit for a small elite while leaving millions struggling to make ends meet. To resolve this crisis, bold thinking is required—thinking beyond incremental reforms. An alternative worth serious consideration is the Islamic economic model, a comprehensive system rooted in fairness, stability, and shared prosperity.

The US government’s financial practices can be compared to a household repeatedly maxing out a credit card without ever paying the balance. Each year, more borrowing occurs to stay afloat, while interest payments pile up. This creates a self-perpetuating cycle where resources that could fund essential services are instead diverted to service debt.

In 2023, the government spent $6.75 trillion, much of which was directed towards paying off old debts. Fraud, waste, and inefficiency in government spending cost billions, but even eliminating these issues would barely dent the $33 trillion debt. The root problem is the system’s reliance on borrowing and interest—a cycle that disproportionately enriches the wealthy while burdening the majority.

Capitalism fails to deliver equitable outcomes. It operates on two key principles that perpetuate inequality and instability. Firstly, financial institutions thrive on interest-based lending, ensuring that debt grows perpetually and benefits the wealthy who own capital. Secondly, corporations and governments prioritise short-term gains over long-term sustainability, leading to economic crashes, environmental degradation, and widening inequality.

These principles were evident during the 2008 financial crisis, when millions of Americans lost their homes, jobs, and savings—not due to personal failings but systemic flaws. The wealthy quickly recovered, while ordinary people faced long-term economic hardship. Since then, little has fundamentally changed.

Meanwhile, wealth inequality continues to grow. Figures like Elon Musk have amassed enormous fortunes, with billions tied to stocks, speculative ventures, and corporate expansions. At the same time, many Americans struggle to pay rent or afford medical care. Asking someone like Musk to solve the very system that has enriched him is akin to asking a wolf to herd sheep. Musk and others like him have thrived in this failed system, while the masses bear its consequences.

Liking this endeavour to the “Manhattan Project” is painfully ironic. Just like its namesake, which obliterated cities and lives under the guise of progress, this plan promises to “fix” the economy while ensuring the usual suspects—the elite—walk away richer. The masses? They’ll pay the price, as always, with their livelihoods and futures sacrificed. Meanwhile, the architects of this grand “solution” will bask in the glow of their success, leaving everyone else to clean up the fallout.

The Alternative to Muskism

The Islamic economic system offers a fundamentally different approach. Unlike capitalism, it is not designed to be piecemeal or adaptable within a debt-driven framework. It operates as an integrated model, emphasising fairness, shared responsibility, and ethical governance. Key principles include the prohibition of interest, wealth redistribution, restrictions on speculative practices, and ethical spending.

Interest-based transactions are prohibited in the Islamic economic system. Instead of profiting from debt, financial relationships involve shared risk and reward. For instance, rather than a traditional business loan where a bank collects fixed interest regardless of outcomes, In Islam people would invest in a venture as a partner. Profits are shared, and if the venture underperforms, the financier bears a portion of the loss. This approach ensures that both parties work toward mutual success, fostering fairness and reducing exploitative financial practices.

A mandatory wealth-sharing mechanism, zakat, requires a small portion of one’s wealth to be redistributed to those in need. This practice reduces poverty and inequality while ensuring that basic human needs are met. Unlike secular welfare systems, zakat is not a discretionary policy but an integral part of the economic model.

Speculative trading and gambling-like financial activities are prohibited. Investments must be tied to real, tangible assets such as businesses, infrastructure, or housing. This stabilises the economy, reducing the likelihood of bubbles and crashes that destabilise entire societies.

The system prioritises spending on societal welfare rather than pursuing pure profit. Resources are allocated to critical sectors like healthcare, education, and sustainable infrastructure, rather than wasteful corporate bailouts.

The consequences of the current system are clear. Rising national debt leads to higher taxes, reduced public services, and economic uncertainty. Meanwhile, wealth inequality widens, as billionaires like Musk accumulate vast resources while millions struggle to afford basic necessities. The Islamic economic model offers a compelling alternative, grounded in principles that could directly address these systemic issues.

Key benefits of the Islamic model include debt reduction by prohibiting interest, stabilising the economy through tangible investments, ensuring equity and fairness with mechanisms like zakat, and aligning economic decisions with societal well-being rather than short-term profit motives.

Fixing the US economy requires more than band-aid solutions. The Islamic economic model offers a comprehensive framework to address the root causes of inequality, debt dependency, and instability. However, this model is not compatible with secular capitalist systems as a hybrid solution. Its principles are interdependent and must be fully adopted to realise their transformative potential.

The pressing question is whether society can embrace a transformative shift away from capitalism’s exploitative grip. For Muslims, the establishment of a Caliphate is more than an aspiration; it is a duty rooted in faith. However, its impact extends beyond religious obligation—it offers humanity a path to liberation from the cycles of debt and inequality perpetuated by capitalism. The Caliphate’s model, grounded in fairness and collective responsibility, could serve as a global beacon for justice, restoring balance and fostering Economic equality for all.