Today, we learn about how wealth and income is circulated and the difference between the concept of distribution and redistribution of wealth and income. There are two ways that wealth and income can be circulated in the economy which are through distribution and redistribution. Distribution of wealth and income is the process where wealth and income are distributed and divided among the members of the society. Distribution of income can be achieve through supplying the factors of production where one needs to work in order to have the right to receive the income. Functional distribution is recognize in Islamic economic system and Capitalism. The recognition of this concept shows that Islam disagree with equal distribution as in Islam, one is encourage to work hard in order to achieve something and Islam discourage the concept of begging. However, in Islamic economic system, arise the concept of redistribution of income and wealth in order to protect the welfare of the society and giving justice to those who can’t afford to receive distribution of income. Different from distribution, redistribution of income is the process of sharing and giving back the wealth and income to the society. This is done by the concept of zakat where one have to pay 2.5% from his income to help the poor besides sanctifying the income, waqf, sedeqah and many others. Islam really encourages man to help other people through these activities as Allah will reward those who help others.
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