Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Dec 7, 2025 8:52 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
In the ‘pressure cooker’
Video: Hundreds of protesters clashed with riot police across central Athens on Wednesday, smashing cars and hurling gasoline bombs during a nationwide labour protest against the government’s latest austerity measures. The former Development Minister Costis Hatzidakis was attacked by protesters outside a luxury hotel. He was escorted, bleeding from the scene as his attackers yelled “thieves” at him. Source: Russia Today In the Greek daily Kathimerini, Alexis Papachelas writes: There are no easy answers and, to make matters worse, we...
The Beginning and End of Christian Giving
Over at Mere Comments, and following up on this week’s Acton Commentary, “Christian Giving Begins with the Local Church,” I discuss some reasons why Christian giving doesn’t end there. It’s vitally important, I think, to distinguish between the church as institution and the church as organism. ...
Ecumenical-Industrial Complex at Work?
I assert the existence of the plex” in my book Ecumenical Babel. On that point, this bears watching: “Ecumenical news agency suspended, editors removed.” From the piece: Earlier this year the WCC, which has been ENI’s main funder and in whose headquarters the agency was based, said it was reducing its financial support for 2011 by over 50 percent. The WCC is an umbrella body linking Protestant and Orthodox churches around the globe. An acting spokesman for the organisation told...
Addendum to Loss of Institutional Faith
Here’s a final and brief follow-up to the discussion about the loss of faith in institutions over recent decades. We might observe that the increase in charitable giving to religious organizations amidst declines in charitable giving overall might show that at least there is not a corresponding loss of faith by religious people in charitable institutions. This is the implication, in fact, at least for institutions other than local churches. Overall, though, it does seem clear that “big charity” is...
Why the Nativity?
Increasingly the Nativity tends to be associated with the political, as the crèche and other overtly religious symbols are banished from the public square by public pressure or the courts. To some municates a baby savior with so little power he can’t even defeat the secular legal authorities who seek his removal. If God is out there, “He must be pretty weak,” could be mon refrain today. Likewise in some churches the Nativity is seen as an activity for the...
The WCRC and Social Justice
Rev. Daniel Meeter, pastor in the Reformed Church of America (RCA), writing in the Reformed journal Perspectives, “Observations on the World Communion of Reformed Churches”: My participation at Johannesburg is the reason I was an observer at the General Council, and why I was assigned to the General mittee on Accra (though there were many mittees and a host of workshops that interested me, from worship to theology to inter-faith dialogue). mittee was huge: sixty people or so. We eventually...
Church of Greece: Country ‘occupied’ by creditors
With the country insolvent, and streets filled with violent protests, the Church of Greece is now pointing fingers at the country’s political leadership and international “creditors” (who have just ponied up another 2.5 billion euros for the bailout). Yet Greece, the Holy Synod says, is “under occupation” by lenders, who have moved in because the politicians “undermined the real interests of the country and its people.” Here’s a report from the Athens Now site, which attributed the statement to the...
Loss of Institutional Faith
In this mentary I say that part of the reason less money is being given to local churches is that it is reflective of a broader trend of distrust towards institutions. Commentary magazine’s blog contentions has some more recent data confirming this overall shift. The post summarizes the December issue of AEI’s “Political Report” (PDF), which focuses especially on trust in the government. It finds that “contemporary criticisms of the federal government are broad and deep” and that, for instance,...
Understanding Human Behavior
In “Human Nature and Capitalism” on AEI’s The American, Arthur C. Brooks and Peter Wehner look at three different “pictures” of what it means to be human and point to the one, foundational understanding that has undergirded the flourishing American culture of democratic capitalism: “If men were angels,” wrote James Madison, the father of the Constitution, in Federalist Paper No. 51, “no government would be necessary.” But Madison and the other founders knew men were not angels and would never...
Colson: Our Work Matters to God
In this week’s “Two Minute Warning,” Chuck Colson shows that “work is something we are all called to do, using our gifts to God’s glory.” As a special offer this week, the Colson Center is giving plimentary copies of Lester DeKoster’s little classic on this subject, Work: The Meaning of Your Life—A Christian Perspective from Christian’s Library Press. Be sure to sign up at the Colson Center website for your free copy, and order a copy or two for important...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved