Economics

Letters[edit]

https://bahai-library.com/uhj_regarding_economic_life

Principles[edit]

Elimination of the extremes of wealth and poverty (and negative aspects of trying to enforce the impossibility of absolute equality)
Spiritual solutions to economic problems

Topics[edit]

Lack of a complete economic system in the Writings (need to be elaborated by the House of Justice)[edit]

Bahá’u’lláh did not bring a complete system of economics[edit]

"No, Bahá’u’lláh did not bring a complete global economics system"

(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, in Lights of Guidance, no. 1869)

Should not Confuse Methods Explained by ‘Abdu’l-Bahá with Present Day Systems[edit]

"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: Extracts from the Bahá'í Writings on the Subject of Agriculture and Related Subjects, A Compilation of the Universal House of Justice, in Lights of Guidance, no. 1861)

Regarding Problems of Ownership, Control and Distribution of Capital[edit]

"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: Extracts from the Bahá'í Writings on the Subject of Agriculture and Related Subjects, A Compilation of the Universal House of Justice, in Lights of Guidance, no. 1862)

Spirit that Permeates Economic Life will Crystallize into Definite Institutions[edit]

"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, in Lights of Guidance, no. 1864)

Application of Spiritual Principles to Economic System[edit]

"… 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, in Lights of Guidance, no. 1868)

Although the Faith covers economic questions and they are interesting, these are not to be achieved through strife and the most important foundation of economics is love[edit]

"The Bahá'í Cause covers all economic and social questions under the heading and ruling of its laws. The essence of the Bahá'í spirit is that, in order to establish a better social order and economic condition, there must be allegiance to the laws and principles of government. Under the laws which are to govern the world, the socialists may justly demand human rights but without resort to force and violence. The governments will enact these laws, establishing just legislation and economics in order that all humanity may enjoy a full measure of welfare and privilege; but this will always be according to legal protection and procedure. Without legislative administration, rights and demands fail, and the welfare of the commonwealth cannot be realized. Today the method of demand is the strike and resort to force, which is manifestly wrong and destructive of human foundations. Rightful privilege and demand must be set forth in laws and regulations.

"While thousands are considering these questions, we have more essential purposes. The fundamentals of the whole economic condition are divine in nature and are associated with the world of the heart and spirit. This is fully explained in the Bahá'í teaching, and without knowledge of its principles no improvement in the economic state can be realized. The Bahá'ís will bring about this improvement and betterment but not through sedition and appeal to physical force--not through warfare, but welfare. Hearts must be so cemented together, love must become so dominant that the rich shall most willingly extend assistance to the poor and take steps to establish these economic adjustments permanently. If it is accomplished in this way, it will be most praiseworthy because then it will be for the sake of God and in the pathway of His service. For example, it will be as if the rich inhabitants of a city should say, "It is neither just nor lawful that we should possess great wealth while there is abject poverty in this community," and then willingly give their wealth to the poor, retaining only as much as will enable them to live comfortably.

"Strive, therefore, to create love in the hearts in order that they may become glowing and radiant. When that love is shining, it will permeate other hearts even as this electric light illumines its surroundings. When the love of God is established, everything else will be realized. This is the true foundation of all economics. Reflect upon it. Endeavor to become the cause of the attraction of souls rather than to enforce minds. Manifest true economics to the people. Show what love is, what kindness is, what true severance is and generosity. This is the important thing for you to do. Act in accordance with the teachings of Bahá'u'lláh. All His Books will be translated. Now is the time for you to live in accordance with His words. Let your deeds be the real translation of their meaning. Economic questions will not attract hearts. The love of God alone will attract them. Economic questions are most interesting; but the power which moves, controls and attracts the hearts of men is the love of God."

('Abdu'l-Bahá, Promulgation of Universal Peace, pp. 238-239)