In the Qur'an it says that Shaitan disobeyed Allah and we should make sure we do not fall in the trap of Shaytan as Adam (AS) and Hawwa did. Why doesn't Allah make sure we do not do things which he doesn't want us to do since he has power over all things? I know this is a test and we are supposed to learn from Shaytan's mistake but at the same time I don't understand why Shaytan has been allowed to have so much power. The good people will be rewarded and the bad punished but why did Allah make bad people? Why didn't Allah just make good people?
Firstly, it should be pointed out that this question(s) is counted as basic inquiry which indeed can help the people (users) how to behave. In other word, I’d like to express that paying heed to the issue of test will give us a strong patience. Regarding your question as you asked:
but at the same time I don't understand why Shaytan has been allowed to have so much power (?)
The answer is that this is completely related to the wisdom or philosophy of Allah. In truth, it seems that:
Whereas Shaytan who has the main role of deceiving the humans, consequently he ought to has such strong power. Otherwise how would be the examination of us? Since human naturally is clean, therefore there is a necessity of something to tempt the human to do the sins, accordingly Allah chose the Satan as that. Although Allah would choose something else instead of Satan if he (Satan) didn’t has such power.
Regarding your anther question as you asked
The good people will be rewarded and the bad punished but why did Allah make bad people?
The answer is that Allah didn’t create bad people. Actually, basically, humans have been created clearly and we cannot accuse Allah why He created bad people. In fact, they have become bad people by themselves based on their free options (which in other word have deceived by Satan (of course according to their free will, not in force)
And eventually concerning your last inquiry as you asked
Why didn't Allah just make good people?
To some extent, its answer is relevant to the previous question and answer. Actually Allah has create all of us clear and in good nature, but they themselves choose the wrong way by their will not Allah created …
As you yourself mentioned regarding the issue of TESTING, according to the wisdom of Allah created Satan (although he himself choose the wrong way), then Allah gave him a high power to be the means of testing the humans that who will select the right path or not. In the meanwhile, as another significant point:the testing of Human would be meaningless if all of people were good, on the other hand Allah would take them to the paradise directly instead of ... (Note: I solely explain it from an aspect quite briefly due to...
I finally indeed appreciate you for asking such significant basic question which can be the question of any people. God Bless You.
As some related matters, I recommend you to read the following links:
You asked a very good question. One that requires thinking outside the box and questioning the general acceptance.
The actual answer to your question is - We do not know.
We are living within the realms of our universe. God is not bound to time and existence as we are. So we are only capable of thinking so much. We do not know why God created us is the real answer. Most people try and give their own reasons but most of them contradict God's characteristics. God has no needs, wants, desires, requirements so if he is perfect then why create?
In Islam, everything is pre-destined by God:
“No calamity befalls on the earth or in yourselves but it is inscribed in the Book of Decrees (Al‑Lawh Al‑Mahfooz) before We bring it into existence. Verily, that is easy for Allaah - [al-Hadeed 57:22]
This indicates that whatever will occur in humanity has already been decided and written before we came into existence.
Your question about why God created bad people is a question which nobody can justifiably answer without trying to divert the question onto other related aspects of creation.
Let me give you an example. God knew that there will be this little boy who will grow up, take charge of Germany and kill millions and millions of Jews. God knew this will happen before he decided to create. Therefore God is the creator of both good and evil. So by that we can conclude that God is the ultimate creator of everything. So then the question arises, WHY?. Why did this perfect God who does not desire, require, want, need anything decide to create?
Some people would argue life is a test for heaven and hell. But how can it be a test if God is the one who has decided the outcome of eternity? What is he testing? It cannot be human choice because ultimately we are not given one. Can he be testing his own powers? That would indicate imperfection.
Moses Maimonides summed it up best:
"Does God know or does He not know that a certain individual will be good or bad? If thou sayest 'He knows', then it necessarily follows that the man is compelled to act as God knew beforehand how he would act, otherwise God's knowledge would be imperfect.…"
Anyone who argues God needs, wants, requires or desires anything then that would immediately contradict God's attributes and would indicate imperfection. Those are human characteristics, which is why we're imperfect.
God has not set a definite course for human history. Instead, God may alter the course of human history as is seen to be fit. Shiite states that matters relating to the human destiny is of two kinds: definite and indefinite. To explain the definitive one, Shiite argues that God has definite power over the whole of existence, however, whenever He wills, He can replace a given destiny with another one; and that is what is called indefinite destiny. - (Wikipedia).
Overall, we can argue many reasons as to why God made us in the first place, regardless of whether they were good or bad. But we definitely cannot put our fingers on this one. We simply don't know enough.
Sometimes saying we don't know something is better than fighting a lost battle.
Oh and by the way.. that little boy's name was Hitler.
Who said that Allah made it? Please just one minute think wise. Children of bad parents now are best people in town and otherwise. If I force you to do worst thing, do you accept? Many of questions are wrong because we think every question we made is correct. Sometimes answer can be find in question. People has choice. God bless you.