Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Dec 16, 2025 3:12 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
Commentary: Buying Off Discontent
“There has always been a generous spirit in America towards the downtrodden, but it’s time to realize that we are no longer being generous: the government is leading us merrily along the path of fiscal fugue,” writes Elise Hilton. So why are federal officials advising benefit applicants that they shouldn’t be “discouraged by funding issues”?The full text of her essay follows.Subscribe to the free, weekly Acton News & Commentary and other publicationshere. Buying Off Discontent: The Economic Wreckage of Disability...
In Christ Things ‘Hang’ Together
Anthony Bradley revisits the thought of Abraham Kuyper as a way of understanding the relationship between creation, Christ, and culture. Over at the Hang Together blog, Greg Forster follows up on a series of ruminations about the gospel described as both a “pearl” and a “leaven.” He proceeds to focus on the reality that so many place the Great Commission and the Cultural Mandate in conflict by highlighting a couple of scriptural passages: Colossians 3:23-24 and Romans 12:2: Whatever you...
Philip II of Moscow: A Model of Christian Enterprise
Philip at the Solovki monastery In the most recent issue of Religion & Liberty, the “In the Liberal Tradition” section profiles Metropolitan St. Philip II of Moscow for his defense of faith and freedom in the face of the tyranny of Tsar Ivan IV, known to history as “Ivan the Terrible.” In contrast to Ivan, who used his power to oppress his own people, Philip taught, “He alone can in truth call himself sovereign who is master of himself, who...
Fr. Gregory Jensen on American Individualism and Orthodox Asceticism
Today at Ethika Politika, Fr. Gregory Jensen, a contributor to the PowerBlog as well as other Acton publications, explores the potential of the Orthodox Christian ascetic tradition as a response to the paradox of American individualism: e to know each other in our uniqueness “only within the framework of direct personal relationships munion…. Love is the supreme road to knowledge of the person, because it is an acceptance of the other person as a whole.” Unlike the more theoretical approaches...
Florida’s New Jim Crow Education System
Martin Luther King, Jr. has to be turning over in his grave. Just when you think America may be on the path to no longer judging people on the basis of skin color, we run into nonsense like the decision last fall by the Florida Department of Education, to institute race-based education standards. According to CBS News in Tampa, the Florida Department of Education, passed a revised strategic plan that says that by 2018, it wants 90 percent of Asian...
Divine Creativity in Business, Art, and Everything Else
The High Calling recently posted a helpful video about creativity in the workplace, drawing insights from innovation consultant Barry Saunders. Saunders notes that, despite our tendency to think of creativity onlyin terms of artistic expression, creativity is simply about “building ideas.” Pointing to Genesis, he observes that God gave us a clear directive to “go create things,” offering us a “foundational understanding of what we were meant to do and how we were meant to spend our days.” But getting...
Finding Blessings in Unwelcome Work
Most of us have spent at least a little time workingin jobs we weren’t thrilled about. For me, it peaked with McDonald’s (no offense, Ronald). For Trevin Wax, it was Cracker Barrel: I never wanted to work at Cracker Barrel. I had business experience as an office manager, plus five years of international missions experience tucked under my belt. But none of that mattered when the most pressing question was, How will you provide for your wife and son this...
Freedom and the Insufficiency of Federalism
How free is your state? The Mercatus Center at George Mason University recently released its third edition of Freedom in the 50 States, a ranking of the states in the U.S. based on how their policies “promote freedom in the fiscal, regulatory, and personal realms.” Here’s a short, humorous video promotingthe report. While there are reasons to disagree with their overly individualistic definition of “freedom,” lets assume that most conservatives and libertarians (and even a few liberals) would broadly agree...
Report: Mass Murder of Christians in Syria
(HT: Pravoslavie.ru. Also see the interview with Russian Orthodox Metropolitan Hilarion (Alfeyev) in the new issue of Religion & Liberty on the dire situation of Christians in Syria.) In his interview to the MEDIA, a Hierarch of the Antiochian Orthodox Church, Bishop Luke of Seidnaya, has disclosed the scale of persecutions suffered by Orthodox Christians of this region since the very beginning of the uprising against the regime of Bashar Al-Assad, reports Agionoros.ru. By now, 138,000 Christians have been banished...
Religion & Liberty: Interview with Metropolitan Hilarion
For Syria’s Christians, it’s a time of great peril and uncertainty. Over the Holy weekend, one Christian in Syria summed up the situation in The New York Times: “Either everything will be O.K. in one year, or there will be no Christians here.” In Religion & Liberty, Metropolitan Hilarion gives considerable attention to the plight of Christians in Syria and the Middle East. On ecumenical relations, the Metropolitan also talks about the obstacles of a united front for Christianity because...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved