Halal Conception and Other Factors Affecting Income Distribution in Islam

Abstract

This paper examines and analyses the vital role of halal conception and its impact in mitigating and reducing the problem of unjust income distribution in our society. It also further expounds some relevant approaches to different economic systems in addressing income inequality. Generally, the conception of halal earning is not only associated with consumptions and devotional acts. Halal, in general, is a term that encompasses all aspects of lawful and unlawful in Islam including economic activities. For Muslims, halal earning is not only mandated by the Almighty God, but it is also indispensable for the acceptance of their religious acts. In relation to its significance in society, halal conception has indisputable impacts on the socio-economic problems of our society. Undeniably, one of the challenging economic issues in our society is the continuous rising of income inequality where the rich become richer and the poor become poorer. This unjust income distribution not only widens the undesirable gap between rich and poor people but also empirically brings socio-economic predicaments in our society. However, the conception of halal earnings is of remarkable mechanism can response the issue of unjust income distribution. Halal earnings can allocate economic resources efficiently and reduce income inequality in our society. The rising concentration of wealth in the hands of few rich individuals has something to do with high returns from proliferation of unlawful professions and economic activities in our society.