Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Apr 22, 2026 1:33 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
The Digital Divide And The Uselessness Of Race
According to a report released this week by the Pew Research Center, the so-called “digital divide” between whites and blacks is slowly being closed by smart phones. Here are the key findings of the report: (1) African Americans trail whites by seven percentage points when es to overall internet use (87% of whites and 80% of blacks are internet users). At the same time, blacks and whites are on more equal footing when es to other types of access, especially...
Let’s Define ‘Income Inequality’
The saga of e inequality” stretches on. The young people of the Occupy Wall Street movement now have a website, and President Obama has proclaimed it the “defining issue of our time.” But what IS it exactly? Does it mean that a teacher, a brain surgeon and a garbage collector should all earn the same wage? Does it mean the wealthy entrepreneur should simply give away her money, rather than investing it or leaving it to her heirs? American Enterprise...
Detroit’s ‘Get out of Bankruptcy Free’ Card
Aaron M. Renn’s reflections on the implications of Detroit’s bankruptcy are worth reading, especially as relate to the DIA, a topic of some previous interest over the last year or so: In the case of the DIA, the city owns the museum and the collection. Hence the question of whether or not art should be sold to satisfy debts. If it were typical separately chartered non-profit institution, this wouldn’t even be a question. At this point, I’d suggest cities ought...
The Call to Work and the Freedom to Flourish
TheInstitute for Faith, Work, and Economics just released a nice little video that captures the importance of vocation and the beauty of work, elevating freedom as the primary driver of human flourishing. Watch it here: There is a way that leads a man to flourish. It is freedom: the freedom to discover his true potential, to keep the fruits of his labor, to find fulfillment in his work. These freedoms are the right of every person, because e woven into...
Why Such Hostility About Religious Liberty?
In a nation founded upon (at least in part) the ability to practice one’s religious beliefs without government interference, we Americans are in a weird spot. It seems that everywhere we turn, folks who practice their religious beliefs are under assault. Again, weird, since most of us who do practice our faith don’t try to cram it down anyone’s throat. Even groups like the Jehovah’s Witnesses – well-known for their door-to-door proselytizing – are happy to step off your front...
Restaurant Owner with Down Syndrome Shares His Gift
At 14 years old, Tim Harris dreamed of owning his own restaurant. He was born with Down syndrome, sohis parents weren’t quite sure what to think.Yet soon after Tim began his first job as a host at Red Robin, it all started to make sense. “[Customers] were visibly happy to see him and Tim really developed a following,” saysKeith Harris, Tim’s father. “People e to the restaurant specifically when he was working. As we sat there, we started thinking about...
When Bellow Met Chambers
You may have heard that Ayn Rand really disliked C.S. Lewis. But do you know what happened when Saul Bellow met Whittaker Chambers? Bellow’s biographer James Atlas provides the anecdote. The context is that Bellow has very nearly gotten a reporting job at Time magazine via Dana Tasker, an editor there. It a gig that would mean a real windfall for the struggling author: There was just one hurdle–a formality, Tasker assured him. He would have to see Whittaker Chambers,...
Explainer: What is Common Core?
What is Common Core? The Common Core State Standards Initiative is a state-led effort that established a single set of educational standards for kindergarten through 12th grade in English language arts and mathematics. What do the educational standards entail? Common Core is intended to cover fewer topics in greater depth at each grade level. In English language arts, the Common Core State Standards require certain content for all students, including: Classic myths and stories from around the world; America’s Founding...
By the Numbers: The War on Poverty
Fifty years ago today, President Lyndon B. Johnson gave his 1964 State of the Union Speech, in which he launched the ‘war on poverty.’ Within four years of that speech, the Johnson administration enacted a broad ran of programs, including the the Job Corps, Upward Bound, Head Start, the Neighborhood Youth Corps, the Social Security amendments creating Medicare/Medicaid, the creation of the Department of Housing and Urban Development, and over a dozen others. Here are a few numbers related to...
Trickle-Down Welfare Economics?
Over at NRO, Thomas Sowell takes on what he calls the “lie” of “trickle-down economics.” Thus, writes Sowell, “the ‘trickle-down’ lie is 100 percent lie.” Sowell cites Bill de Blasio and Barack Obama as figures perpetuating the “lie,” along with writers in “theNew York Times, in theWashington Post, and by professors at prestigious American universities — and even as far away as India.” But we should also note that “trickle-down theories” get a mention in Evangelii Gaudium, too: “some people...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved