Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Jan 1, 2026 5:19 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
Justice Alito exposes the hypocrisy of liberal double-standards
You probably haven’t even heard about it, but yesterday there was an exchange in the Supreme Court that future generations will regard as one of the most significant revelations of our political era. The case of Minnesota Voters Alliance v. Mansky concerns a Minnesota statute that broadly bans all political apparel at the polling place. When Andrew Cilek went to vote in 2010, he wore a shirt bearing the image of the “Don’t Tread on Me” flag and a button...
Oscar-winner ‘Coco’ is a free-market family gem
Last night, Coco joined the elite group of animated films to win a “grand slam”: the Golden Globe, BAFTA, theAnnie Award,andan Oscar. Neither of the victories at last night’s 90th annual Academy Awards came as a surprise – fans have dubbed the Best Animated Feature Film category “the Pixar award” – but the blockbuster’s plot touches on how the free market rewards or rebuffs unethical practices, how technological progress brings justice, and the eternal significance of vocation and memory. The...
How budget constraints affect consumer choices
Note: This is post #70 in a weekly video series on basic microeconomics. There are numerous variables that determine the price of goods and services—including your willingness to pay the price. Because we have choices in what we buy, the price is relative to other goods. For example, one pizza may cost the equivalent to two cups of coffee so we have to make tradeoffs between goods. We also have budget constraints, which are a crucial variable in helping you...
Milton Friedman debates President Trump on trade
Many of us thought it was empty rhetoric or that an advisor who had read an economics textbook would talk him out of it. But yesterday President Trump announced he’ll keep his campaign promise to start a trade war by slapping tariffs of 25 percent on foreign-made steel and 10 percent on aluminum. On Twitter, the president followed up with the bafflingly, ment that, When a country (USA) is losing many billions of dollars on trade with virtually every country...
6 Quotes: William F. Buckley, Jr. on collectivism, freedom, and power
Today is the tenth anniversary of the death of William F. Buckley, Jr., founder of National Review and the father of postwar American conservatism. In his honor, here are six quotes by the inimitable writer on collectivism, freedom, and power. On government power (I): “The government can’t do anything for you, except in proportion as it can do something to you.” On government power (II): “[A] democracy can itself be as tyrannical as a dictatorship, since it is the extent,...
Radio Free Acton: Yuval Levin on finding solidarity in the Age of Trump; Upstream on ‘Black Panther’
On this episode of Radio Free Acton, Marc Vander Maas, audio/visual manager at Acton, speaks with Yuval Levin, Vice President of the Ethics and Public Policy Center, on finding solidarity in the “Age of Trump,” what it means, how it came about, and then touch on the history of political polarization in America. On the Upstream segment, Caroline Roberts has a discussion with Julian Chambliss, professor of history at Rollins College, on Marvel’s new hit movie, “Black Panther.” Check out...
Black Panther has something important to offer
In this week’s Acton Commentary I examine the dynamics of marginalization and solidarity in the blockbuster phenomenon Black Panther. As so mentators have suggested, there’s a lot to this film, and one of the important things it has to offer is a valuable perspective on the underlying unity amidst diversity in humanity. Another aspect of the film worth highlighting is that it presents Wakanda, and Africa more generally, as having something positive to offer the world; advanced technology and rare...
Keeping warm during the ‘Beast from the East’? Thank energy investors
As the UK beds down for the night, it is blanketed with government alerts that traveling out into the snow-covered landscape might prove deadly – as it already has for 10 people ranging in age from seven to 75. The snowfall may total more than 19 inches, as Storm Emma collides with the “Beast from the East.” Subzero temperatures also strained energy supplies on Thursday, triggering the largest spike in consumer demand in eight years. While far from perfect, the...
Work as flourishing in prison: The power of a ‘triple bottom line’ business
For much of his life, Pete Ochs was a successful investment banker in Wichita, Kansas. Yet having started his own business and created significant wealth through a series of investments, he struggled to see the value and purpose of it all. When the market took a turn for the worse, he realized that something needed to change. “After 9/11, our business dropped 50%, and I looked at God and said, ‘don’t you understand what I’ve done for you?’” he explains....
Alex Chafuen awarded for an exemplary career in defense of freedom
Today The Instituto Juan de Mariana has awarded the “Premio Juan de Mariana” to Acton’s Director of International Outreach Alex Chafuen. This award recognizes an exemplary career in the defense of freedom and liberty. The Juan de Mariana Prize is presented at the Freedom Dinner as a part of Freedom Week. Chafuen was recognized especially for his work at the Atlas Network. During 26 years with Chafuen in a leading role, Atlas brought together more than 450 institutions from almost...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved