Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Jan 11, 2026 6:03 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
Italy, competition and the problem of guilds
Last Saturday’s New York Times contains an entertaining, edifying but ultimately sad tale on what ails the Italian economy. Entitled “Is Italy Too Italian?“, the Global Business article seeks to explain why Italy often tops “the informal list of Nations That Worry Europe” economically. Part of the problem may be the reluctance to use modern industrial techniques that can reduce costs of production – can you afford to pay $4,000 for a suit??? – or the large public debt run...
Here I Stand: Marketing and Remembering the Reformation
I just couldn’t pass this one up. Below is an ENI story on the installation of 800 “colourful miniature figures of the 16th-century Protestant Reformer Martin Luther” in the market square of Wittenberg. Just as last year there was a good deal of academic mercial interest around the 500th anniversary of the birth of John Calvin, you can expect a great deal of activity leading up to the 500th anniversary of the traditional date of the dawn of the Reformation...
Manuel F. Ayau (1925-2010): A Life for Liberty, Justice, and the Truth
Those who love freedom were saddened to learn this morning of the passing of one of the most significant contributors to the cause of liberty and individual responsibility in Latin America, Manuel F. Ayau, affectionately known as “Muso” to his many friends and acquaintances, after a long and brave struggle with cancer. A humble, self-effacing but determined man, Ayau is a classic example of someone who made a difference. Whereas others confined themselves to talking about the free society, Ayau...
An Open Letter from Alexis de Tocqueville to President Barack Obama and the American People
I think that the oppression threatening democracies will not be like anything there has been in the world before…. I see an innumerable crowd of men, all alike and equal, turned in upon themselves in a restless search for those petty, vulgar pleasures with which they fill their souls…. Above these men stands an immense and protective power which alone is responsible for looking after their enjoyments and watching over their destiny. It is absolute, meticulous, ordered, provident, and kindly...
Ralph Raico on Religion, Lord Acton, and Classical Liberalism
One of the charges sometimes leveled against classical liberal thought is thatit opposes all authority; that it seeks toreduce society to an amalgamation of atomized individuals, eliminating the role of munity, and vibrant social institutions. Historian Ralph Raico seeks to argue the very opposite in his dissertation, The Place of Religion in the Liberal Philosophy of Constant, Tocqueville, and Lord Acton.The work has been republished for the first time by the Mises Institute. (A particularly interesting note is that the...
The Birth of Freedom Curriculum: YouTube Trailer and Pre-Order
Here is the new trailer for the 7-part Birth of Freedom DVD Curriculum, created by Acton Media and released next month by Zondervan. You can pre-order the curriculum at the Acton Book Shoppe. ...
Health Care Subsidiarity in the UK and the US
A recent New York Times story reports that the new British government plans to “decentralize” the National Health Care system as part of its new austerity measures. Practical details of the plan are still sketchy. But its aim is clear: to shift control of England’s $160 billion annual health budget from a centralized bureaucracy to doctors at the local level. Under the plan, $100 billion to $125 billion a year would be meted out to general practitioners, who would use...
Europe’s Surviving Farmers Show True Entrepreneurial Spirit
Are the Old Continent’s farmers showing that they have a real entrepreneurial spirit and serving as role models of courage and innovation during the Great Recession? Surely not all of them, but there are some inspiring examples to be found in Central and Southern Europe. This is somewhat surprising as Europe’s agricultural sector is usually among the most traditional, least open to market innovation and product flexibility, and heavily reliant on EU funding to keep the petitive. Alas, European leadership...
Rome’s Graffiti and Bastiat’s Broken Windows
Today’s Wall Street Journal has a nice piece about the problem of graffiti in Rome and the obstacles to cleaning it all up. While the graffiti are certainly an eyesore in an otherwise beautiful city, there is also great economic damage done, which leads to impoverished understandings of private property and general urban decay. If cleaning up the graffiti on a four-story palazzo can cost as much as €40,000, there are surely people there to profit from the clean-up. And...
Salary and Significance
During a recent conversation, a Chinese friend of mented on the lack of political involvement that she has observed in her peers, especially parison to American college students. She attributes this lack of involvement to the fact that the Chinese do not believe that political action can change the policies or even the identities of their leaders. As a result, non-politicians in China do not get involved in politics, and politicians there focus on achieving their own goals rather than...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved