Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Apr 27, 2026 6:55 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
Romney’s Religion
Michael Gerson’s “What Matters About Romney’s Religion” in today’s Washington Post: There is a long tradition of American leaders who believe that religion is so personal it shouldn’t even affect their private lives. But this rigid separation between religious conviction and public policy lies outside the main current of American history. Abraham Lincoln’s theology, while hardly orthodox, was not his “own private affair.” “Nothing stamped with the divine image and likeness,” he asserted, “was sent into the world to be...
‘I Am Not Afraid of Death’
Alexander Solzhenitsyn Der Spiegel has published a far ranging interview with Alexander Solzhenitsyn in which the great writer “discusses Russia’s turbulent history, Putin’s version of democracy and his attitude to life and death.” It is very much worth the read. Once again, e away from an encounter with Solzhenitsyn’s thought and marvel at his courage, his dedication to his art, and the almost indestructible quality of this man, now 88. In the current Religion & Liberty, I reviewed the new...
Baxter, How to Do Good to Many, Part 1
Readings in Social Ethics: Richard Baxter, How to Do Good to Many (London, 1682; repr. 1830), part 1 of 3. References below are to page numbers. On Good Works: A condemnation of selfishness: “It is a sign he is a branch cut off and withered who careth little for any but himself” (292).The orderliness of subsidiarity obligations: “But as all motion and action is first upon the nearest object, so must ours; and doing good must be in order: first...
‘A Power Out Of Ourselves’
Enthusiastic atheists are on the offensive in an effort to tear down private faith, now that religion has increasingly lost influence in the public square. Richard Dawkins, author of “The God Delusion”, and Christopher Hitchens’s, “God Is Not Great: How Religion Poisons Everything” have sold hundreds of thousands of copies. The reason for this attack is because the atheists claim to mitted to justice, while people of faith, along with the divine itself, are and have been purveyors of injustice,...
“We Doubt, We’re Out, Get Used to It”
Hey everybody, Richard Dawkins is selling T-shirts! Get ’em while they’re hot! One of my favorite bloggers, Allahpundit (who just happens to be an athiest himself), calls this “…a new stage in the transformation of ‘new atheism’ from rational argument to aggrieved identity group,” and has this to say about the t-shirts themselves Some of menters call this sort of thing evangelical atheism but a moron with a scarlet “A” on his chest really isn’t trying to convert you. He’s...
Lord Acton on Literature
Picking up on the themes of the importance of narrative from recent weeks, I pass along this worthy saying of Lord Acton: “Government rules the present. Literature rules the future.” ...
Debunking the ‘Eat Local’ Myth
An op-ed in today’s NYT by James E. McWilliams, “Food That Travels Well,” articulates some of the suspicions I’ve had about the whole “eat local” phenomenon. It seems to me that duplicating the kind of infrastructure necessary to sustain a great variety of food production every hundred miles or so is grossly inefficient. Now some researchers in New Zealand have crunched some numbers that seem to support that analysis: Incorporating these measurements into their assessments, scientists reached surprising conclusions. Most...
Questions for Dr Gregg
Australian blogger Barney Zwartz, writing for the Australian newspaper The Age, tracks down intrepid research director Sam Gregg, who participated in a Melbourne book launching for Catholic Social Teaching and the Market Economy. After noting that “it seems counter-intuitive to me to consider market-theorist heroes such as Maggie Thatcher and Ronald Reagan friends of the poor,” Zwartz asks: Is Dr Gregg right? Is a market economy the primary tool for addressing poverty, are other economic approaches better, or are there...
The Transfiguration of Our Lord
Mt. Tabor In much of the Christian world today, the great feast of the Transfiguration of Our Lord memorated (Matt. 17:1-9). In the Eastern Church, as Fr. Seraphim Rose observed, it is customary to “offer fruits to be blessed at this feast; and this offering of thanksgiving to God contains a spiritual sign, too. Just as fruits ripen and are transformed under the action of the summer sun, so is man called to a spiritual transfiguration through the light of...
Economics and Happiness
Chuck Colson locates the perennial problem of human unhappiness with the inability to perceive where happiness es from. There’s the economic argument that while “increased prosperity can’t make you happy, it can, ironically, contribute to unhappiness,” an argument which Colson says, “doesn’t tell us anything about what makes people happy in the first place. Thus, it can’t tell us why increased prosperity doesn’t translate into increased happiness.” As I’ve noted before, the economic argument is helpful for locating a source...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved