Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Apr 17, 2026 5:46 AM

Fueled, in part, by the Pope’s passionate appeals, the campaign to reduce e inequality is growing rapidly around the globe.

The e equality movement argues that there is a growing gap between the es of top earners and everyone else. This claim is supported by a recent study conducted by the International Monetary Fund. In the United States, the e growth rate for the highest e earners has significantly surpassed the national average over the past 30 years.

Many politicians, including President Obama, have called for policy changes in order to slow the growing divide. However, this concern results from a distorted understanding of the word e” and disregards the importance of aggregate e growth.

The term e inequality” is deceptive. It is used to imply that e equality is the norm and anything else is abnormal and harmful to society. e is payment for services provided. If all e was equal that would mean that all services were equal. Proponents of e equality ignore the definition of e and instead emphasize the word equality. They make the erroneous assumption that equality is always good for society. Inequality e to imply injustice, but while justice is always good for society, the benefits from equality depend on the circumstances.

A highly skilled neurosurgeon likely makes far more than a recent medical school graduate, and rightly so. It is not unjust for the higher skilled worker to receive a pensation for his or her work. Injustice would be two workers receiving different es based on racial or gender differences alone. Although the distinction between equality and justice is fairly simple on an individual level, as soon as the discussion es nationwide in scope there is suddenly a cry for solutions to this apparent travesty.

This argument also assumes that it is a social harm when one person’s e increases at a faster rate than another person’s e. An equal rate of increase between the lowest and highest brackets would only be positive if that equal rate is greater than the previous rate seen by the lowest bracket.

For example, e in the lowest quintile has increased 18% since 1979, and e for the highest quintile has increased by 65% over the same period. If e for all brackets had increased only 10% there would have been absolute e growth equality. However, nobody will argue that this situation is better for anyone. Who in the lowest quintile would not prefer 18% e growth, regardless of the growth in the other quintiles? e growth equality is not always better than inequality, and consequently, inequality is not inherently a social harm.

Social activists seem to think e equality should be valued above economic growth. This is rooted in the misconception that one person’s gain is automatically another person’s lose. However, the market is not a zero-sum game, and sacrificing growth for equality would harm everyone, including the lower e earners.

According to the CBO study, es at every level are increasing; critics like to emphasize the faster growth of high-earners’ es, but they ignore the growth seen by the lower earners. Additionally, critics argue that e inequality hurts social mobility, but a recent study, led by Raj Chetty of Harvard University, found that social mobility has remained relatively stable over the past 20 years.

Equality alone is not enough to justify e redistribution. Proponents of e redistribution have failed to provide a real world impact of e inequality that would justify such “legal plunder,” to use the phrase of Frédéric Bastiat.

The modern push for e equality treats national e like a single e that should be distributed equally to every individual in the United States. Instead, national e should be viewed as a collection of individual es which result from the labor of individuals. Redistributing the reward for that labor is not justice; it is “legal plunder.”

According to Bastiat, humans typically want to avoid labor when at all possible and choose to plunder another man’s labor whenever plunder is easier than labor. “Legal plunder” occurs when a nation’s laws are corrupted in order to support this injustice. Possibly the greatest instrument for legal plunder in the United States is the federal e tax.

Although e inequality is used to justify the progressive tax system, the e tax has done little to decrease e inequality. According to the Congressional Budget Office, e inequality has increased over the past 30 years despite the progressive tax system.

Often the programs intended to decrease e inequality only serve to increase it. Instead of increasing earned e, welfare programs often create incentives to earn less e in order to receive more welfare. After the minimum wage increase in Seattle, some workers asked for fewer hours in order to continue receiving government subsidies. Welfare programs provide the money to solve a problem, but they often ignore the humanity of the welfare recipients whose incentives may not align with government objectives.

The responsibility for removing e inequality should be placed on the workers not the government. “Legal plunder” has shown itself to be an ineffective remedy, and the government should respect the workers ability to increase their es without government subsidies. e must be treated as the result of labor by human beings, not just numbers and dollar signs on a screen.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
A Labor Day Benediction
Labor Day is one of those special American holidays that we all enjoy. We mark the end of summer by it, though fall doesn’t begin for several more weeks. This is the time we get back into our non-summer routines and school is now in session for most students and teachers. It is also a time for one final long weekend. In the liturgy of my own church the benediction from yesterday’s worship said it well: In the name of...
Outlawing Baggy and Saggy Pants Won’t Work
The City of Atlanta, and several other cities, have been debating whether or not to pass a law prohibiting saggy pants. Here’s the story from the Atlanta Journal-Constitution: Atlanta officials did not decide Tuesday whether they should e fashion police. However, they did agree to continue to debate whether the city should regulate whether folks can walk around Atlanta with saggy pants and exposed undies. Council members expect to create a 10- to 12-member task force soon to further the...
Global Warming Consensus Alert – There is Broad, Strong Agreement Based on Solid, Incontrovertible Science
Here’s your broad, strong agreement among scientists: In 2004, history professor Naomi Oreskes performed a survey of research papers on climate change. Examining peer-reviewed papers published on the ISI Web of Science database from 1993 to 2003, she found a majority supported the “consensus view,” defined as humans were having at least some effect on global climate change. Oreskes’ work has been repeatedly cited, but as some of its data is now nearly 15 years old, its conclusions are ing...
Poverty Rate Drops First Time Since 2000
Fox News reports: The nation’s poverty rate dropped last year, the first significant decline since President Bush took office. The Census Bureau reported Tuesday that 36.5 million Americans, or 12.3 percent — were living in poverty last year. That’s down from 12.6 percent in 2005. The median household e was $48,200, a slight increase from the previous year. But the number of people without health insurance also increased, to 47 million. The last significant decline in the poverty rate came...
Rauschenbusch, Christianity and the Social Crisis
Readings in Social Ethics: Walter Rauschenbusch, Christianity and the Social Crisis.References below are to page numbers. This year marks the 100th anniversary of the first publication of Christianity and the Social Crisis, and a new centenary edition has been released this month by HarperSanFrancisco and includes responses to each chapter from figures such as Jim Wallis, Tony Camplo, Cornel West, Richard Rorty, Stanley Hauerwas, and others.R’s introduction to the American situation: “We have now arrived, and all the characteristic conditions...
Food, Animals, and the Flood
The relation of the creation account and the narrative of the flood in Genesis is plex one. One of these es in the similarities of the mandates set forth by God in both accounts. The sixteenth-century reformer Wolfgang Musculus identifies three mandates in the creation account (in addition to the specific prescription regarding the tree of life). The first of these is the procreation mandate: “Be fruitful and increase in number.” The second is the dominion mandate, flowing from the...
Is Adolescent Culture Making Us Weak?
While lifeguarding during the summer of my college years, I remember an attractive young woman who worked with me plained she could not meet any guys at her school, The University of Notre Dame. I inquired further, figuring it to be the beginning of a punch line to a joke. She noted the problem as being young male students, and their over-interest in video games. Maybe you have seen the bumper stickers which declare, “It is never too late to...
Global Warming Consensus Alert: Silver Lining Edition
It turns out that the Chinese were really thinking ahead back in 1979 when they implemented their one child policy. After all, imagine what their carbon emissions would be today if they hadn’t: The number of births avoided equals the entire population of the United States. Beijing says that fewer people means less demand for energy and lower emissions of heat-trapping gases from burning fossil fuels. “This is only an illustration of the actions we have taken,” said Su Wei,...
Socialism is the American Way in Krugman’s America
There are a number of problems with Paul Krugman’s NYT piece earlier this week, “A Socialist Plot.” pares the American educational system to its healthcare system, arguing that because Americans aren’t inclined to disparage the former as a socialist threat, we likewise shouldn’t consider universal healthcare as a “socialist plot.” “The truth is that there’s no difference in principle between saying that every American child is entitled to an education and saying that every American child is entitled to adequate...
Economics and the Evangelical Mind
Hunter Baker has a new column at named “Evangelical Minds,” and in it he examines issues of evangelical interest in academics and higher education. Today’s piece quotes me at some length on the question of evangelicals and economics, related to the firing of a professor at Colorado Christian University (scroll down to the final section titled, “Christian Economics?”). This piece is the third installment of the feature, and you can check out the first two here and here. ...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved