Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Jan 20, 2026 7:02 PM

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
Radio Free Acton: Philip Booth on Catholic Social Teaching in China; Jay Richards on technology and work
On this episode of Radio Free Acton, Rev. Ben Johnson, Senior Editor at Acton, speaks with Philip Booth, Professor of Finance, Public Policy and Ethics, St. Mary’s University in the UK, about Catholic Social Teaching in China. Then, we have an Econ Quiz segment on wealth redistribution. Finally, Dan Churchwell, Associate Director of Program Outreach at Acton and Jay Richards, Executive Editor at The Stream, talk about how technology affects work. Check out these additional resources on this week’s podcast...
7 quotations by Billy Graham on work, free enterprise, and communism
Image source: Paul M. Walsh Earlier today, Reverend Billy Grahampassed awayat the age of 99. He will be remembered as a global evangelist, a counselor to presidents, a dispenser of wisdom via his daily advice column, and – for millions – the man who led them to believe in Jesus Christ as their personal Lord and Savior. Over the course of his ministry, Rev. Graham brought biblical insights to bear on the social issues of his day. Below are seven...
Are we entering an apprenticeship renaissance?
Due to a range of cultural pressures and government incentives, the four-year college degree has e somewhat of a rite of passage in economic life. From the prompts of parents and teachers to the prods of student-loan subsidies, we are routinely encouraged to double down on a cookie-cutter approach to higher education. Yet as college tuition continues to rise — outpacing general inflation by a wide margin — and as students find themselves increasingly skeptical of the promise of such...
(Sir) Billy Graham: Labour Party ‘created a thousand economic problems’
“The Queen will be sending a private message of condolence to the family of Billy Graham,” Buckingham Palace announced Wednesday. The Netflix series The Crown portrays the real-life friendship between Rev. Billy Graham and Queen Elizabeth II. But Graham’s relationship with other UK leaders got off to a rocky start after he repeatedly –and publicly –criticized economic interventionists. Graham believed deeply in the goodness of free enterprise and exchange. In 1949, he said of Clement Atlee’s postwar Labour ministry: The...
Why poor parents in Kenya prefer private schools
Parents around the world share one thing mon: We want what’s best for our children. Many e parents in America make significant sacrifices to ensure their children get a quality education. So it’s not surprising that poor parents in Kenya are willing to do the same. About fifteen years ago the government of Kenya implemented a free primary education program for all children. Why then do more than half of primary school students in Nairobi attend private schools? Why do...
5 Facts about Billy Graham (1918–2018)
The Rev. Billy Graham diedtoday at the age of 99. Here are five facts you should know about the man who became the world’s most famous Protestant evangelist. 1. In 1934 at the age of 16, Graham was turned down for membership in a local youth group because he was “too worldly.” A man who worked on the Graham farm persuaded the young man to go and see the evangelist Mordecai Ham. According to his autobiography, Graham was converted during...
Isolationism and internationalism in Black Panther
I finally got around to seeing Black Panther last night, and my early reaction echoes so much of the overwhelmingly positive response to the film. As so many superhero tales do, Black Panther weaves plex ideas within the often deceptively fantastical trappings of science fiction and fantasy. A few themes among the many immediately leap out, especially the dynamics of isolationism and internationalism that face Wakanda throughout its history. The isolationist attitude is embodied by Wakanda’s past and especially its...
‘The Economics of Apocalypse’: Billy Graham’s sermon on money and materialism
In light of Reverend Billy Graham’s recent passing, we’d do well to pause and reflect on his life and legacy, which was defined by the spreading of the Gospel, and doing so in a way that inspired deep faith and authentic relationship with Jesus. Although Rev. Graham mostly steered clear of the partisan fray, he frequently offered strong challenges to the American people on social and economic issues, from opposing racial segregation to drawing a distinct contrast between Communism and...
Study: GMOs increase crop yields, reduce ag toxins
“Our mission is to harness economic power—the strength of consumers, investors, businesses, and the marketplace—to create a socially just and environmentally sustainable society.” Some readers might assume the epigraph above derives from some classic of moral and economic literature – perhaps, say, Adam Smith’s A Wealth of Nations or A Theory of Moral Sentiments. However, the platitude I quoted actually belongs to the staunchly anti-Genetically Modified Organisms (GMOs) nonprofit Green America. The words, in fact, are Green America’s Mission Statement....
New research finds connection between increases in religiosity and increases in income
For centuries economists and other social scientists have noticed that religiosity is associated with a set of characteristics that promote economic success. (A prime example is Max Weber’s theory about the Protestant work ethic.) Yet finding empirical evidence for the connection has been challenging because of the difficulty in determining whether religious influence affects economic behavior or if the traits for economic success lead people to be more religious. A new working paper published by the National Bureau of Economic...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved