Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Feb 16, 2026 11:21 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
Bonhoeffer on Church and State, Part 3
The following is the text of a paper presented on November 15, 2006 at the Evangelical Theological Society 58th Annual Meeting in Washington, DC, which was themed, “Christians in the Public Square.” Part 3 of 3 follows below (series index). War and Peace I will conclude with a brief word about Bonhoeffer and pacifism, given the ongoing claims about Bonhoeffer’s mitment to the practice of nonviolence.[i] First, it should be noted, with Clifford J. Green, that it is invalid to...
A Thanksgiving Prayer
Almighty God, Father of all mercies, we thine unworthy servants do give thee most humble and hearty thanks for all thy goodness and loving-kindness to us and to all men. We bless thee for our creation, preservation, and all the blessings of this life; but above all for thine inestimable love in the redemption of the world by our Lord Jesus Christ; for the means of grace, and for the hope of glory. And, we beseech thee, give us that...
Rule of Law and Economic Development in Mexico
This article, by California Western School of Law Professor James Cooper concerns me quite a bit. A legal specialist in Rule of Law, Cooper has been trying to establish legal reforms in Mexico that would make its judicial system more transparent. He isn’t getting anywhere: By implementing more transparent, efficient and participatory criminal judicial procedures, there may exist a better sense of fair play in judicial proceedings, and a reduction of instability and unpredictability. But that would require some action...
Good News for the Moralists
Here’s some good news for those who prefer bat cultural evil through the edification and cultivation of moral sensibilities: In “Repugnance as a Constraint on Markets,” Alvin E. Roth finds that “distaste for certain kinds of transactions is a real constraint, every bit as real as the constraints imposed by technology or by the requirements of incentives and efficiency.” He also finds that “while repugnance can change over time, change can be quite slow.” This presumably applies to the decrease...
Celebrating Grand Rapids’ Social Entrepreneurs
I’m a “dot connector” by inclination; I generally network people and resources, but old questions with new answers that have yielded encouraging results are a great thing to connect as well. In September 2004, the Manhattan Institute hosted an event intended to revisit 1996 welfare reform legislation results with the hope of positive lessons learned and applied for then pending reauthorization. (The fact that such was continually delayed is yet another matter.) “Whither Welfare Reform: Lessons from the Wisconsin Experience,”...
The Parenting Class
Along the same lines as my earlier post, The Weekly Standard argues that putting the needs of parents first, can form a more stable foundation for an alliance between fiscal and social conservatives. Both fiscal and social conservatives should put themselves in the shoes of the parenting class and focus on petition and choice while also encouraging the growth and strength of the two-parent family. In health care, for instance, conservatives have consistently failed to approach things from that point...
Fast Company’s Social Capitalists
Fast Company has announced the results of its 2007 search for socially panies, conducted along with Monitor Group. View the winners and their grades in slideshow form here. The winners range from the generally praiseworthy, such as ACCION International, to the rather more questionable, like Ceres, whose claim to fame on the list is that “after joining Ceres, Dell agreed to support legislation to require electronics recycling,” to the downright stultifying, such as TransFair USA, the certifying body for the...
The State Which Would Provide Everything
is the title of an insightful article by Fr. James Schall over at the Ignatius site. An analysis of the political contribution of Deus Caritas Est, Benedict XVI’s first encyclical, ments: The Second half of the encyclical is a brilliant treatise on the nature and limits of the State and what lies beyond it. "We do not need a state which regulates and controls everything," Benedict writes, "but a State which, in accordance with the principle of subsidiarity, generously acknowledges...
Hugh Hewitt and the Mormon Question
In a plenary address a couple weeks back to the Evangelical Theological Society, law professor and journalist Hugh Hewitt spoke about the religious affiliation of political candidates and to what extent this should be considered in the public debate (Melinda at Stand To Reason summarizes ments here). In advance of his ing book, A Mormon in the White House?: 10 Things Every Conservative Should Know about Mitt Romney, Hewitt used Massachusetts Governor Mitt Romney as an example as to why...
Immigration Policy and the Future of Free Market
I have been quite concerned for some time about the shrill debate over illegal immigration and its potential fallout for free trade. I have argued, at Acton events and elsewhere, that no long-term solution to the flow of illegal immigration from Mexico is possible, without significant economic growth in Mexico. U.S. per capita GDP is 6.5 times greater than the Mexican per capita GDP. The public service infrastructure in the US is far superior to that in Mexico. Taken together,...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved