Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Apr 30, 2026 1:15 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
Easy Cases Make Bad Law
Earlier this week the University of Oklahoma chapter of Sigma Alpha Epsilon was caught on video engaging in a racist chant. The video shows several men wearing tuxedos and riding on a charter bus singing that black students, which the men refer to with a racial slur, could never join their fraternity. The chant also alluded to lynchings. Language warning: The video below contains offensive and racist language. The reaction to this vile, disgraceful video was swift and, for the...
Russia and Ukraine: An Exceptional Love Affair?
In a meeting with young historians last fall, Russian President Vladimir Putin discussed the annexation of Crimea (RT described this delicately as “the newly returned” Crimea) and reminded them that “Prince Vladimir [Sviatoslavich the Great] was baptized, and then he converted Russia. The original baptismal font of Russia is there.” Matthew Dal Santo, a fellow at the Saxo Institute at the University of Copenhagen, Denmark, uses a public exhibition of art in Moscow (Orthodox Rus. My History: The Rurikids) to...
God, Reason, and Our Civilizational Crisis
The way that a culture understands the nature of God shapes its conception of man, reason, and society, says Acton Institute Director of Research Samuel Gregg. Though this presents enormous challenges for the Islamic world, it also has significant implications for the sustainability of Western civilization: In 1992, the political scientist Samuel Huntington ignited a debate among scholars of politics and international affairs when he proposed that civilizational differences would be an increased source of conflict in a post-Cold War...
Women Of Liberty: Isabel Paterson
“If there were just one gift you could choose, but nothing barred, what would it be? We wish you then your own wish: you name it. Our is liberty, now and forever.” Isabel Paterson came to influence the likes of Ayn Rand and William F. Buckley, but her early life was rough and tumble. One of nine children, Paterson had only two years of formal education but loved to read. Her father had a difficult time making a living and...
Last Day: Free Download of ‘A Vulnerable World’
Today is the last day you can get a free copy of Acton’s latest monograph, “A Vulnerable World: The High Price of Human Trafficking” by Elise Hilton. Visit Amazon before midnight to download. For more information about the monograph and human trafficking, visit Vulnerable.World. Pope Francis has called human trafficking “an open wound on the body of contemporary society.” This monograph discusses both the economic and moral fall-out of modern-day slavery. ...
Abraham Kuyper on ECT
Evangelicals and Catholics Together (ECT) is celebratingitstwentieth anniversary. First Things, whose first publisher Richard John Neuhaus was a founding ECT member, is hosting a variety of reflections on ECT’s two decades, and in its latest issue published a new ECT statement, “The Two Shall e One Flesh: Reclaiming Marriage.” The first ECT statement was put out in 1994. But as recalled by Charles W. Colson, another founding member of ECT, the foundations of evangelical and Roman Catholic dialogue go back...
Acton Commentary: ‘Christ and Crisis’ Today
Charles Malik. Photo credit: LIFE Magazine. In today’s Acton Commentary, I highlight a little book by the Lebanese diplomat, philosopher, and theologian Charles Malik, Christ and Crisis (1962). With regard to its continuing relevance, I write, Malik would urge us to have the courage to take up our crosses today, each in our own capacities petencies, putting the life of the spirit first, not settling for easy answers and scorning all distractions. “There are three unpardonable sins today,” wrote Malik...
No, Snowflake, We’re Not Responsible for Your Student Loan Debt
“No snowflake in an avalanche ever feels responsible,” said Stanisław Jerzy Lec. Whether that is true in nature, it’s certainly seems to be true for many of the precious little snowflakes who find themselves, after making poor educational decisions, buried under anavalanche of student loan debt. Consider, for instance, this op-ed by Tad Hopp, a student in “his last semester in the MDiv program at San Francisco Theological Seminary.” Before we delve into what will be one of the worst...
The FCC’s Attack on Religious Liberty
What are we to think of net neutrality? No, seriously, that’s not a rhetorical question—I just can’t remember which side I support. I’ve written about net neutrality at least a half-dozen times (including an explainer piece) and yet for the life of me I can never remember which is the most pro-freedom, pro-market side. Is it opposing neutrality, supporting neutrality, being neutral on neutrality? Opposed, I think. I’m pretty sure it’s opposed. Perhaps that type of confusion is why so...
Did Cardinal Turkson Lift The Curtain On Upcoming Ecology Encyclical?
There has been much speculation regarding Pope Francis’ ing encyclical on ecology. Will he side with those who raise the alarm on climate change? Is he going to choose a moderate approach? Will the encyclical call for changes to help the poor? Commonweal’s Michael Peppard seems to think Cardinal Peter Turkson, the Ghanaian prelate and President of the Pontifical Council for Justice and Peace, has lifted the curtain on the pope’s ing encyclical. Cardinal Turkson gave a lecture last week,...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved