Does God exist? If yes, why do bad things happen to good people?

 God wants us to be happy!

This is the message of Krishna in the Bhagavad-Gita:

„Focus your mind on Me, devote your whole being to Me, be engaged for My sake and be humble towards Me. Thus you will come to Me – I promose you this truth, for I love you!“ – Bhagavad-Gita 18.65

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Ultimate reality is both passive and active.

In „modern Hinduism“, at least here on Quora, mostly only the the passive aspect of God is being emphasized which could lead you to the assumption that God is just the neutral sumtotal of Being. Just Being, Awareness, Consciousness.

This is only half of the story!

For there is also the active aspect of God which expresses Intention, Will, Love.

And you know this, because you asked why God allows suffering. God has a will.

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Krishna explains in the Gita that a Soul too has a free will with which it can choose where to put its love. By love here I mean ones intention: What do I really want in life?

Life, as an eternal expression of God, too has the active and passive aspect. So all life has intention. All living beings express will!

Krishna further explains that ultimately the will of the Soul can either be be aligned with His will (loving the Whole) or be egocentric.

Choosing God, the Whole, means love, freedom, truth, liberation, expansion, joy.

„Dedicated to Me, by My mercy you will overcome all difficulties in life. But resorting to egoism, you won‘t hear My voice in your heart, and thus you will fall!“ – Bhagavad Gita 5.8

Choosing selfishness, wanting to be God oneself, means egoism, slavery, lies, shrinking, evil.

„Choosing the Divine nature of Mine leads you to freedom, but choosing the Evil nature opposing Me leads to bondage.“ – Bhagavad Gita 16.5

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Why does God allow suffering?

Because He does not interfere with our free will, but lets us experience the according consequences of our coices.

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This entire universe is the proper place for Souls opposing God, since time and space allows for the illusion of being separeted from God, being independent from God, being God oneself!

„Those with an evil mindset think: «[…] I am the Lord, I am God, I am the final recipient of enjoyment, I am perfect, powerful and happy! […] Thus they delude themselves.“ – Bhagavad-Gita 16.14.15

„This created world is also a divine place, but it is very difficult to overcome, but those who finally surrender unto Me can cross beyond it. But those who choose evil, egoism, do not surrender to Me but instead acquire an evil nature which will delude them.“ – Bhagavad-Gita 14–15

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Why do we suffer at all?

The reason why we suffer is because we subconsciously believe that egoism (putting my will first) will do us good, so we really choose evil.

God only allows it. This is the causality of this world – we real what we sow. The law of Karma.

„Those who act selfishly experience the according consequences of their actions which is either desirable, undesirable or mixed.“ – Bhagavad-Gita 18.12

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But along the way we experience that we suffer, because egoism continually goes against our nature! Our nature is love!

„Following such anti-God beliefs they lose connection even to their own Soul and lose all wisdom. Thus, they will act in an evil fashion which is very malevolent to this entire world!“ – Bhagavad-Gita 16.9

Egoism will never make us happy. This is Maya, illusion. Not this world, not our individuality, not our suffering.

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Ending suffering requires one thing: Letting go of the attitude that it‘s about me. It is not. It has, is and will always be about God.

I am a part of God. What is a finger to the body if it‘s disconnected from it?

But when the finger is properly connected to the body, it functions well and also receives all the lifes energy it needs; it fulfills its purpose.

In the same way we can reconnect ourselves to God, which is the most natural thing to do – returning home, where we belong!

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The bottom line is: God wants us to be happy. He gives us all we need. It is our choice to be aligned with Him, to accept and take in what He wants to give us.

So:

„Give up all other duties and surrender unto Me alone. Let that be your only duty. I will free you from all evil – don‘t be afraid, don‘t hesitate!“ – Bhagavad-Gita 66 . 

According to Hinduism.

God is neither good nor bad, beautiful or ugly, male or female.. God is nirguna.. had all aspects and none.

ParaBhraman'

We are all part of this. So God is within us.. which means we too are nirguna..we have to realise it.

The God within ourselves.

You are the one choosing the good and bad. You are making things happen… not God.

God does not judge or control or punish.

Your own consciousness does that. Your own responsibility…how the outcome of your life

Hope you understand.