Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Mar 11, 2026 12:16 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
On the Universal Common Good
Today at Ethika Politika, I examine the longstanding claim of the Roman Catholic Church that the universal character of mon good in our present era necessitates a world political authority. The problem, I argue, lies in the tradition’s too closely identifying the good of munities with mon good. The recently canonized Pope John XXIII, for example, states that “[p]ublic authority” is “the means of promoting mon good in civil society” (Pacem in Terris, 136, emphasis mine). And Pope Benedict XVI...
Video: Rev. Sirico on Papal Economics, Vatican Bank
Acton Institute President and co-founder, Rev. Robert Sirico was recently interviewed on both Bloomberg TV as well as Fox & Friends’ Varney & Co. Sirico spoke with Trish Regan on Bloomberg’s “Street Smart” about financial reform in the Vatican: On Fox, Sirico discussed millennials, Cardinal ments on the free market and the Virginia primary: ...
David Brat’s Views on God, Mammon, and Economics
Last night, economics professor David Bratsurprised everyonein defeating House Majority Leader Eric Cantor (R., Va.) in a primary challenge for Virginia’s 7th congressional district. Predictably, the media is now a-buzz about Brat, rapidly catching up on his beliefs, his plans, and so on. Time will tell as for whether Brat is successful as a politician, and whether he is, in fact, a strong conservative alternative to his predecessor.But one item that sticks out in Brat’sacademic CVis his unique interest in...
The Power of Pentecost in Vocation and Globalization
Given the dynamics of the information age and ever-accelerating globalization, humanity faces a variety of new opportunities and challenges when es to creating, collaborating, and consuming alongside those from vastly different contexts. Although Pentecost Sunday has already past, Pentecostal theologian Amos Yong wrotesome related reflectionson this very question, particularly as it relates to Christian vocation.As Yong notes, “location and situatedness matter, and do so across many registers — religious/theological, ideological, socio-economic, political, educational, linguistic, geographical, cultural, ethnic, racial, and experiential.”...
Calvin Coolidge at Acton University
Next week at Acton University I am giving a lecture titled, “Calvin Coolidge and his Foundational Views on Government.” One of the great things about studying Coolidge is that he is extremely accessible. Coolidge noted during his political career that practicing law was valuable for munication skills that promote brevity and clarity in speech. The Coolidge lecture at Acton University will attempt to do likewise. He’s a president that probably would have little trouble with the 140 character limit on...
Explainer: What’s Going on in Iraq?
What just happened in Iraq? Conflicts in Syria and Iraq have converged into one widening regional insurgency and Iraq risks a full-scale civil war after an al-Qaeda-linked militant group called ISIS quickly seized a large section of the country’s northern region. The group has already taken Mosul, the country’s second largest city, and is within striking distance of Baghdad. Insurgents stripped the main army base in the northern city of Mosul of weapons, released hundreds of prisoners from the city’s...
What Christians Should Know About Money
Note: This is the latest entry in the Acton blog series, “What Christians Should Know About Economics.” For other entries inthe series seethis post. The Term: Money What it Means: In economics, money is a broad term that refers to any financial instrument that can fulfill the functions of money (more on that in a moment). There are three basic ways to exchange goods and services: gifting (e.g., I give you a banana, expecting nothing in return); barter (e.g.,...
Global Religious Hostility Continues To Increase
, Pew Research says this is a global issue. The Americas are the only region not seeing a noted increase. A third (33%) of the 198 countries and territories included in the study had high religious hostilities in 2012, up from 29% in 2011 and 20% as of mid-2007. The sharpest increase was in the Middle East and North Africa, which still is feeling the effects of the 2010-11 political uprisings known as the Arab Spring.There also was a significant...
Feel-Good Taxation and the Monkey’s Paw
File under allegory: An Austin, Texas, resident whose property tax bill has her “at the breaking point.” As noted by Katherine Mary Ham at HotAir, the resident in question, Gretchen Gardner, deems the $8,500 bill for which she’s on the hook a wee tad cumbersome. “It’s not because I don’t like paying taxes,” she said. “I have voted for every park, every library, all the school improvements, for light rail, for anything that will make this city better. But now...
Got Religion? Bringing Back The Youth
I met Naomi Schaefer, not yet Riley, while she was editor of “In Character” and just about to have her first book “God on the Quad” published. I invited her to be a speaker at a Catholic business conference that I was involved with in southern California. The following week she married Jason Riley. The writing career continues to produce good stuff. And there are three kids now and a house in the burbs. Good stuff all around. Her latest...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved