Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Apr 24, 2026 5:21 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
Prayer for all Christians in their vocation
Almighty and everlasting God, by whose Spirit the whole body of thy faithful people is governed and sanctified: Receive our supplications and prayers, which we offer before thee for all members of thy holy Church, that in their vocation and ministry they may truly and devoutly serve thee; through our Lord and Savior Jesus Christ, who liveth and reigneth with thee, in the unity of the same Spirit, one God, now and forever. Amen. –U.S. Book of Common Prayer, “For...
Technology imperialists at the forefront
This Wired News article examines the European outrage at Google’s announced plans to digitize the holdings of all the world’s libraries. “There is a growing awareness in continental Europe of the technology gap, even with some of the very good technologies they have had, panies like Google, like Microsoft, like Apple … which are presented as almost technology imperialists at the forefront,” said Jonathan Fenby, a former Observer editor and author of France on the Brink. “There is this defensive...
Sister Connie Driscoll — Fearless servant
The Acton Institute lost a dear friend with the passing last week of Sr. Connie Driscoll, president of the Chicago-based St. Martin de Porres House of Hope, and a frequent lecturer at the Towards a Free and Virtuous Society conferences. Columnist Carol Marin of the Chicago Sun-Times described Sr. Connie as “the most unlikely nun I have ever seen: a black eye-patch-wearing, cigarillo smoking, Scotch-drinking sister. Though she had lost her left eye to a stroke, her good eye was...
The Public Square: “Civic friendship”
From First Things, June/July 2005, No. 154, p. 68 The Public Square: A Survey of Religion and Public Life • Rome Diary, etc., Richard John Neuhaus • “Civic friendship.” What a beautiful idea, but in our rancorous political climate some might be excused for thinking it is a pipe dream. In an instructive little book published by the Acton Institute, Trial by Fury, by law professor (and FIRST THINGS contributor) Ronald Rychlak, applies the idea of civic friendship to tort...
Museum of plastic cadavers
Chicago’s Museum of Science and Industry is currently hosting the Body Worlds show, a display of plasticized cadavers and body parts. According to museum publicity, some 16 million people worldwide have seen the show, the creation of Gunther von Hagens, a German inventor who claims to have created the “plastination” technique. This, basically, is a modern-day form of mummification which allows museums to exhibit skinned and otherwise dismembered bodies in interesting and even entertaining postures. Depending on your point of...
Book smarts vs. street smarts
Many may know that the season finale of The Apprentice was broadcast last night, with the conclusion being a victory for the “Book Smarts” team (college educated or higher) over the “Street Smarts” team (high school only). Arnold Kling at EconLog points out that the contributions of the young and above-average are almost always undervalued. This experientially strikes me as true. His advice: “If you are exceptional and young, you should start your own business. That way, you will get...
Capitalism and Catholic social teaching
Rev. Robert Sirico responded over the weekend in the Detroit News to a letter disputing one of his previous columns. In “Catholic social teaching embraces markets,” (May 21) Rev. Sirico writes that “the fact that the church has no economic models to propose is not the same as saying all economic models are the same. Some have greater moral potential than others.” You can read Rev. Sirico’s initial piece, “Pope Benedict XVI will turn out to be a real liberal,”...
The art of movie piracy
I recently watched a rerun of Seinfeld, in which Jerry es entangled with a movie bootlegger, and finds out that he has a gift for movie piracy. Jerry’s talent would be the cure for what this Slashdot plains about: “I’ve yet to find a blockbuster movie that isn’t readily available on the net after it opens, but somehow this is still news. It’s still usually worth shelling out the cash to see a version that isn’t fuzzy with garbled sound,...
To the moon and beyond
I was born on the seventh anniversary of Neil Armstrong’s historic moonwalk, which may or may not have something to do with my lifelong love of aviation. I have fond memories from my childhood of sitting in front of the pletely captivated by network news coverage of the launch of the Space Shuttle. Now, I’m not even certain that the 24-hour cable networks cover launches anymore. Sadly, for a shuttle mission to make front-page news these days, it has to...
The Public Square: On Ordered Liberty
From First Things, June/July 2005, No. 154, p. 69 The Public Square: A Survey of Religion and Public Life • Rome Diary, etc., Richard John Neuhaus • Of the thousands of books that deserve a review, relatively few get reviewed here or elsewhere. Sometimes we plan a review but, for one reason or another, it doesn’t pan out. Happily, that can be partially remedied by borrowing, as I here borrow from Daniel J. Mahoney’s excellent review of Samuel Gregg’s On...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved