Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Feb 13, 2026 10:50 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
Black America Is Just As Class Divided As The Rest Of America
The Pew Research Center released a new report stating: “African Americans see a widening gulf between the values of middle class and poor blacks, and nearly four-in-ten say that because of the diversity within munity, blacks can no longer be thought of as a single race.” Here are the key findings: • Asked whether blacks can still be thought of as a single race, given the increasing diversity within the munity, 53% of blacks say they can, but 37% of...
George Hearst of Deadwood: ‘The-boy-the-earth-talks-to’
In a bit of an addendum to my review of the HBO series Deadwood in the current issue of Religion & Liberty, “A Law Beyond Law: Life Together in Deadwood,” I couldn’t help thinking of this bit from Clement of Alexandria when describing George Hearst, the über-robber baron of the Old West. In that piece I write, “Hearst fancies that he is doing his fellow man a service in his devotion to mining gold, to acquiring ‘the color.'” There’s a...
A Child’s Faith
“People were bringing little children to Jesus to have him touch them, but the disciples rebuked them. When Jesus saw this, he was indignant. He said to them, ‘Let the little e to me, and do not hinder them, for the kingdom of God belongs to such as these. I tell you the truth, anyone who will not receive the kingdom of God like a little child will never enter it.’ And he took the children in his arms, put...
God Hears the Compassionate
“If a man shuts his ears to the cry of the poor, he also shall cry himself, but shall not be heard.” Proverbs 21:13 I remember being very young and hearing a minister dramatically describe the flames and fires of hell in a sermon. I know I was somewhere between the age of six and seven. At this time, I also had little knowledge of salvation in Christ, so I worried about my eternal destination. Couple this thought with a...
Reports on Globalization and National Capital
Last month the World Bank published a report titled, “Where is the Wealth of Nations?” (HT: From the Heartland). The report describes estimates of wealth and ponents for nearly 120 countries. The book has four sections. The first part introduces the wealth estimates and highlights the level position of wealth across countries. The second part analyzes changes in wealth and their implications for economic policy. The third part deepens the analysis by considering the importance of human and institutional capital,...
Rock N Roll ‘Jesus’
Last night the American Music Awards were televised on ABC. Among the big winners were alumni of the hit TV show, “American Idol,” whose stars won 3 AMAs. Kid Rock, the Rock N Roll “Jesus.” But there was another kind of “idol” on display at the AMAs, as Detroit’s own Kid Rock was a presenter and did a spoof of his fight with rocker Tommy Lee in edy bit with host Jimmy Kimmel. Kid Rock released a new album last...
Alarmism and Corruption
Regis Nicoll over at The Point notes a WaPo story that is getting a lot of play on the blogosphere about the UN’s downgrade of the estimate of the extent of the AIDS epidemic, “U.N. to Cut Estimate Of AIDS Epidemic: Population With Virus Overstated by Millions.” Nicoll writes that while of course it is good news that fewer people are infected than were previously thought, “The bad news is that previous estimates were inflated because of politics, bad science,...
No Plan? No Problem
The Cato Institute and Randal O’Toole offer an appealing new book, The Best Laid Plans—a recounting of the failures of government planning. Think of it as extensive documentation of the truth Hayek observed half a century ago: it is impossible for a central authority to collect all the information or make all the predictions necessary to foresee how economic activity will play out. Therefore, it is impossible to plan centrally the operation of major sectors of the economy such as...
Wichita Business Journal: The Call of the Entrepreneur
Pat Sangimino wrote an article for the Wichita Business Journal titled, “Documentary seeks to dispel negative images of entrepreneurs ” (subscription required). A premiere of The Call of the Entrepreneur took place in Wichita, Kan., on November 14th. Sangimino noted in his piece: Some consider Wichita to be the Midwest’s cradle of entrepreneurship. Evidence of that is the original Pizza Hut building, which was moved to the Wichita State University campus in 1984 to serve as a reminder of what...
Giuliani and the Godbloggers
After the jump is the (hyperlinked) text of a column I filed last week from GodblogCon. Here are some related items worth exploring: “Evangelicals and Evil Empires: Religious voters have long had an interest in foreign policy,” OpinionJournal (HT: CT Liveblog).“Rudy’s Gamble: Giuliani’s audacious strategy for the nomination,” OpinionJournal.“Evangelical flocks on their own at the polls,” LA Times (HT: J-Walking).“On second thought, conservatives give Huckabee an amen,” LA Times.“Clarifying Media Distortions,” Focus on the Family.“Robertson for Rudy,” God’s Politics.“The Robertson...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved