Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Apr 21, 2026 6:27 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
University Study: Obamacare Cost West Michigan 1000 Jobs
A new study by Grand Valley State University professors Leslie Muller and Paul Isely suggests that the Affordable Care Act has already cost West Michigan 1000 jobs. Muller summarized the results in a Wood TV story: “Firms are actually holding off on hiring or their reducing their hiring that they were thinking they were going to be doing because of the ACA,” said Muller. The 1,000 jobs lost does not include the number of workers in West Michigan that have...
The Seen and Unseen Effects of the Minimum Wage
Given the recent and wide-ranging discussion here on the PowerBlog surrounding the the minimum wage (Hunter Baker, Joe Carter, Jordan Ballor, Elise Hilton, yours truly), this short little video offers a nice overview of the seen and unseen effects of such an instrument. To make its argument, the video assumes the worst about wage-setters, describing Edgar the Employer as Edgar the Exploiter: one who cares only about “making profit” and even dreams aboutpaying his employees less. I have yet to...
Pittsburgh’s Physician to the Homeless
Five nights a week, Dr. Jim Withers walks the streets of Pittsburgh bringing free medical help to the homeless. Since 1992, he has served over 25,000 impoverished people in need of care. Dr. Withers and others like him are doing important, praiseworthy work. But we should be careful that we don’t confuse this stop-gap measure with a solution. Providing care on the streets is necessary — for now. The goal we must work toward, though, is to help these citizens...
Is Income Inequality Really About Marriage?
President Obama has called e inequality the “defining challenge of our time,” but is it strictly about paychecks? Ari Fleischer thinks there is definitely more to it; he believes it’s about the breakdown of the family and American rejection of marriage. “Marriage inequality” should be at the center of any discussion of why some Americans prosper and others don’t. According to Census Bureau information analyzed by the Beverly LaHaye Institute, among families headed by two married parents in 2012, just...
Acton University 2014 Speaker Spotlight: Judge Andrew P. Napolitano
The focus of Acton University is scholarship: the participants spend their days learning from a faculty that is wide-ranging, plished, and masters in their chosen fields. The Acton Institute is pleased that Judge Andrew Napolitano, currently a Fox News Senior Analyst, will be joining us to teach “Freedom of Conscience and the Constitution.” Judge Napolitano, author of numerous books including It Is Dangerous to Be Right When the Government Is Wrong: The Case for Personal Freedom and Theodore and Woodrow:...
He Has a Pen, We Have a Constitution
On Tuesday, in his first cabinet meeting of the year, President Obama indicated he is prepared to use executive actions more frequently to advance administration goals. “We are not just going to be waiting for legislation in order to make sure that we are providing Americans the kind of help that they need. I’ve got a pen and I’ve got a phone,” Obama told his Cabinet. Over at First Things, Robert George, Professor of Jurisprudence at Princeton University, provides a...
A lesson in intuitive economics from a saloon on the moon
It was once mon practice of saloons in America to provide a “free lunch” to patrons who had purchased at least one drink. Many foods on offer were high in salt (ham, cheese, salted crackers, etc.), so those who ate them naturally ended up buying a lot of beer. In his 1966 sci-fi novel, The Moon Is a Harsh Mistress, Robert Heinlein used this practice in a saloon on the moon to highlight an economic principle: “It was when you...
Hoisting the Black Flag
“It’s possible. I kill a lot of people.” H.L. Mencken once said, “Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats.” Over at Political Theology Today, I take a look at what a confrontation between a pirate and Alexander the Great has to teach us about politics and proximate justice, taking some cues from Augustine and Cicero, and in conversation with John Mueller and Peter Leeson. For...
What the Oregon Medicaid Study Tells Us About Big Government
If a large Oregon study is any indication, says Jonathan Witt in this week’s Acton Commentary, the Affordable Care Act may drive up frivolous emergency room visits and do little to improve people’s physical or economic health: In essence, the healthcare industry es the enabler in a lucrative game in which patients put off needed lifestyle reform, opting instead for prescription pills, surgeries and conversations about “genetic predispositions.” None of this gets at the root problem, and indeed exacerbates the...
The Acton University Experience: ‘Touched My Very Soul’
Over the next few weeks, the PowerBlog will be featuring people who have attended Acton University and their experiences, via podcasts. By hearing how Acton University has affected a variety of people in so many ways, we hope to encourage those who’ve never been to Acton University to consider registering for AU 2014. Today’s podcast features Becki Essner, a teacher at Notre Dame Regional High School in Cape Girardeau, Mo. Becki has attended Acton University three times, and has been...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved