Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Apr 23, 2026 10:43 PM

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
Tiger Woods, Morality, and the Market
Via Victor Claar (follow him on Twitter here), an op-ed in The Oracle (Henderson State University’s student paper) by Caleb Taylor, “Tiger Woods and Capitalism.” A taste: “Contrary to what Michael Moore thinks, capitalism promotes moral and ethical behavior. In Woods’ case, it punishes poor behavior. Sponsors such as Nielsen, AT&T, Gillete and Gatorade have all either suspended or removed their endorsement deals with Tiger due to his moral mistakes.” ...
NIV Stewardship Study Bible: ‘A remarkable resource…’
Rev. Jerry Hoffman, Director of the Center for Stewardship Leaders at Luther Seminary, reviews the NIV Stewardship Study Bible. “What I found was a remarkable resource that leads one to see how strong the stewardship thread exists throughout scripture…. I anticipate using this resource in my writing, preaching and teaching,” he says. To keep abreast of the different resources available on stewardship, e of a fan of the NIV Stewardship Study Bible on Facebook and follow the Twitter feed @Oikonomeo,...
Read My Lips
“…we are setting an ambitious goal: all students should graduate from high school prepared for college and a career – no matter who you are or where e from.” – Barack Obama, Saturday Radio Address. A few years ago I asked a friend and business owner why he put value on a college diploma when talking with entry level talent who had majored in subjects incredibly tangential to his job descriptions. He answered, “Well, it shows they can finish something.”...
Two Cheers for the Bishops of England and Wales
Choosing the Common Good from Catholic Westminster on Vimeo. In today’s Acton Commentary, I review a new statement titled Choosing the Common Good (download it here) from the Catholic Bishops’ Conference of England and Wales. In the introductory video linked above, The Most Rev. Vincent Nichols, Archbishop of Westminster, introduces Choosing the Common Good and discusses the key themes in Catholic Social Teaching “as a contribution to the wide-ranging debate about the values and vision that underpin our society.” Here...
‘Man is man’s greatest resource’
recently asked me ment on statements made by Ettore Gotti Tedeschi, president of the Vatican bank, about the economic effects of demographic decline in Western industrialized countries. Tedeschi told the Zenit news service that the “true cause” of the financial crisis is the low birth rate in these countries. “Instead of stimulating families and society to again believe in the future and have children […] we have stopped having children and have created a situation, a negative economic context...
Saving Catholic Schools
In many urban areas, maintaining Catholic schools and maintaining some semblance of educational choice are synonymous: the old Catholic schools represent the only alternatives to a big, clumsy, and often unsatisfactory public school district. The issue is especially poignant because the student populations served by these schools are frequently the most educationally challenging populations in the nation. Thus, proponents of school choice are dismayed at the continued shuttering of dozens of major-city Catholic schools across the country. The search for...
The Scars of Ceausescu
It is a good thing from time to time to step back and remember just what it is that we who believe in the free society fight for each day. I stumbled across Michael Totten’s exploration of Romania – Twenty Years After the Fall of the Tyrant. With the passage of time, it is easy to forget – at least for those of us who never directly experienced it – just how suffocating and cruel the Communist dictatorships of the...
Caring for the Persecuted Church
Power Line has a post over at its site titled “Why Don’t Christians Care?” Glenn Reynolds at Instapundit also linked to the post today. Powerline’s question refers to the lack of concern from the “mainstream” munity on Christians being massacred by Muslims in the Middle East and Africa. It’s a great question to ask. Just for the record, we want to remind people that the Acton Institute cares. Last month I wrote a piece that received a lot of attention...
Melanchthon on the Gospel’s Social Implications
The hugely influential reformer Philip Melanchthon (1497-1560) writes in mentary on Romans 13: Meanwhile, the Gospel teaches the godly properly about spiritual and eternal life in order that eternal life may be begun in their hearts. In public it wants our bodies to be engaged in this civil society and to make sure of mon bonds of this society with decisions about properties, contracts, laws, judgments, magistrates, and other things. These external matters do not hinder the knowledge of God...
Video: Liberating Black Theology
Joseph D. Martinez, a 2008 alum of Acton’s Toward a Free and Virtuous Society program, produced a great video to introduce readers to my new book, Liberating Black Theology (now in the Acton Book Shoppe. Buy it here). Thanks, Joe! “Liberating Black Theology” book promo from Joseph D. Martinez on Vimeo. ...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved