Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Dec 13, 2025 3:55 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
John Wesley teaches us the true value of money
Many believe that money is the root of all evil, when in fact the Bible says “love of money” is the root of all evil. But a healthy e, even wealth, can also be a blessing that enables us to bless others. Read More… John Wesley, the father of Methodism, defended a rigorous and intentional plan for Christlikeness that would touch every aspect of a believer’s life. Caring intensely for the poor, he endeavored to create short, easy-to-read “penny pamphlets”...
An economist’s summer reading list
Between raging inflation and declining markets, consumers have much to worry about. What they shouldn’t worry about is whether there are answers at hand. Some new books provide hope. Read More… If you attended Acton University, you saw the treasure trove of books for sale. Several of those books made it onto both my credit card and my summer reading list. Even if you weren’t able to join us at AU, you can still find most of the books here....
Twenty-five years after promising autonomy, China has turned Hong Kong into China
Xi Jinping’s recent victory lap in Hong Kong does not bode well for the future of civil rights and freedoms there, as the “one country, two systems” agreement made with Great Britain in 1997 appears irreparably broken. Read More… On January 1, 1997, Hong Kong, effectively seized by Great Britain in war a century before, reverted to Chinese rule. Only recently liberated from the madness of Mao Zedong’s rule, Beijing promised to preserve Hong Kong’s separate “system” for 50 years....
Does The Godfather believe in America?
Mario Puzo and Francis Ford Coppola’s cinematic masterpiece shines a light on how attempts to subvert American institutions in the name of a higher, personal justice can fail calamitously. In the end, human nature will not be subverted. Read More… This month the Tribeca Film Festival celebrated the 50th anniversary of the premiere of The Godfather, an important movie, a movie we at some point got in the habit of calling iconic, and we might remember it made stars of...
Tony Sirico, 1942-2022
Requiescat in pace. Read More… Tony Sirico, the renowned actor and older brother of Acton Institute co-founder and president emeritus, Rev. Robert A. Sirico, passed away on July 8, 2022. He was 79 years old. Watch the livestream of the funeral of Tony Sirico on Wednesday, July 13, at 10:30am ET here: Sirico was best known for his role as “Paulie Walnuts” Gualtieriin HBO’sThe Sopranos, for which he won twoScreen Actors Guild Awards for Outstanding Performance by an Ensemble in...
How Frederick Douglass found hope on the Fourth of July
On July 5, 1852, nearly a decade before the start of the Civil War, Frederick Douglass, a freed slave and statesman-abolitionist, offered a profound speech on seeing the Fourth of July through the eyes of a slave. The speech monly known as “What to a slave is the 4th of July?” — illuminates the drastic disconnect between ourfounding principles and the severe oppression of slavery that somehow managed to endure. While the specific evils in question have thankfully been abolished,...
Yes, abortion is about race, but not in the way progressives think
Roe v. Wade has been overturned and bad arguments in defense of unrestricted abortion abound. What everyone needs now is a little history lesson. Read More… As I was watching a film with my son the other day, we began to hear chanting below us. We looked out the window and saw protesters marching in the streets shouting, “Hey Hey! Ho Ho! The white man has got to go!” The protesters were themselves white. The protest was in response to...
The ground is shifting under Francis Fukuyama’s feet
In his new book, the author of The End of History attempts to explain how liberalism is threatened by illiberal elements on the left and right. But flaws in his analysis almost guarantee that this is not the end of the discussion. Read More… In Liberalism and Its Discontents, Francis Fukuyama aims to defend liberal political ideas and institutions against rising and now entrenched detractors from the postliberal left and the right. As he notes, “liberalism is under severe threat...
Supernatural thriller Stranger Things shows the all-too-human evil of communism
Season 4 of the Netflix mega-hit still focuses on the reality of supernatural evil, but has added a dose of natural evil as well. But where’s the supernatural good? Read More… The final installment of the fourth season of Netflix’s Stranger Things was released on July 1. According to Variety, season 4’s first installment “of the Duffer Brothers’ hit sci-fi series was viewed for 287 million hours during the week of May 23–29, landing in the No. 1 position.” The...
Income inequality is not a problem for government to fix
Taxing the rich to make others richer is a recipe for e stagnation, petition. Read More… Implicit in concerns about rising e inequality is a critique of the underlying system that generated that inequality: a free market regulated petition. In a free market, people are rewarded with earnings that correspond to the value they create for others. For this to happen, however, everyone ideally has an equal opportunity to earn an ever expanding e. The perceived problem is that such...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved