Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Feb 11, 2026 8:27 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
C.S. Lewis on the Progressive’s Regress
Over at Christianity TodayArt Lindsley has a good piece on how C.S. Lewis’s support for true progress led him to oppose Progressivism: Some of Lewis’s most pointed criticisms of “progress” came when he wrote on economics and politics, even though he did not ment on these topics. When he was invited by theObserverin the late 1950’s to write an article on whether progress was even possible, he titled his contribution “Willing Slaves of the Welfare State.” In this essay Lewis...
As Expected, Jobless Claims ‘Unexpectedly’ Increase
Today at Bloomberg we find this unexpected news about unemployment: Applications for U.S. unemployment benefits unexpectedly climbed to a nine-week high, underscoring the difficulty adjusting the data for seasonal variations such as the Easter holiday and spring recess at schools. Jobless claims rose by 14,000 to 344,000 in the period ended April 26, the highest level since Feb. 22, Labor Department data showed today in Washington. The median forecast in a Bloomberg survey of economists called for 320,000. There are...
Honoring God as a Ranch Hand and Wrangler
In a video selected as the winner of a contest sponsored byThe High Calling, Dylan Weston, a ranch hand and wrangler from Pennsylvania, shares how his work glorifies God and adds value to others. This is a great example of how we as Christians might begin to view our role in the bigger picture, particularly as it applies to the economies of creative service and wonder. Dylan does not view his service as a mere means to personal fulfillment or...
Seattle’s Foolish Experiment Will Be a Lesson for America
When I was growing up I had a buddy—let’s call him “Bob”—who was constantly asking, “What happens if we do . . . ?” Bob’s curiosity, however, only led him to wonder about foolish actions. He never pondered, for example, what would happen if we all volunteered at the senior citizens center. Instead, his thinking ran more along the lines of what would happen if we jumped off the senior citizens center. The reaction of me and the rest of...
Report: International Experts Examine Religious and Economic Freedoms
Zenit, the Catholic news service, published a recap of Acton Institute’s conference, “Faith, State, and the Economy: Perspectives from East and West.” The event, held in Rome on April 29, brought expert speakers from around the world to explore plex relationship between religious liberty and economic freedom. For more on this conference and others planned in the series titled “One and Indivisible? The Relationship Between Religious and Economic Freedom,” please visit this page. Zenit asked Acton Research Director Samuel Gregg...
Review – Faith, State, and the Economy: Perspectives from East and West
On Tuesday, April 29, the Acton Institute hosted the conference Faith, State, and the Economy: perspectives from East and West at the Pontifical Gregorian University in Rome. This conference was the first in a five-part international conference series – One and Indivisible? The Relationship Between Religious and Economic Freedom. The one-night event, moderated by Acton’s Rev. Robert A. Sirico, featured four prominent speakers who offered deeper insight into the question of the relationship between religious freedom and economic liberty. The...
Why I Appreciate Pope Francis (Even When We Disagree)
“Inequality is the root of social evil,” tweeted Pope Francis earlier this week, raising eyebrows across the globe. Like many conservative Christians I expressed my disagreement on social media. “Um, no it’s not. Hate and apathy are the roots of social evil,” I said on Twitter. I also wondered whether Francis had “traded the writings of Peter and Paul for Piketty”—the French Marxist economist whose latest book on the evils of inequality has e a worldwide bestseller. Some Catholics, such...
In Praise of Trade Schools
One of the benefits of a Christian theology of work is that it frees parents up to encourage their children to pursue various employment-related vocations that cultivate creation, rather than prod them to waste a life in the unfulfilling pursuit of the American Dream. Our obsession with the American Dream, as a means of achieving a life fort and ease, has distracted us from the fact that the world’s economy doesn’t need adults simply with college degrees so much as...
A Dystopian’s Guide to Barbie Dolls and Disney Princesses
Proponents of limited government often talk about utopianism because it led to so much dystopian grief in the most infamous socialist experiments of the 20th century. Anna Mussman makes another utopian/dystopian cultural connection in a recent essay at The Federalist. She draws a connection from the airbrushed world of Barbie Dolls and Disney princesses, to the thirst for dystopian fiction among the girls who soon outgrow those panions. Mussman suggests that when girls raised mainly on a steady diet of...
The Pilgrims and John Paul II
On The Catholic World Report, Acton’s Michael Matheson Miller offers a personal reflection on the recent canonization of Pope John Paul II. There were pilgrims from all parts of the world: Spaniards, Australians, a remarkable number of French (including a couple whose five young children wore matching jackets), a large group from Equatorial Guinea were also matching memorative traditional garb marked with images of Pope John Paul. I saw Slovaks, Americans, Nigerians, Lebanese, Italians, and legions of Poles young and...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved