Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Jan 2, 2026 10:40 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
The nation-state and security of freedom
In a recent article for Law and Liberty, Samuel Gregg, Acton’s Director of Research, reviews French political scientist Gil Delannoi’s new book Le nation contre le nationalisme. “Since 2016,” Gregg writes, “it has e evident that millions of people are not content to be herded, sheep-like, by intellectuals, techno-utopians, and supranational bureaucrats down the path of global governance. Their discontent is being expressed through a renewed emphasis upon the nation and an associated stress on nation-state sovereignty.” This emphasis on...
What exactly is the unemployment rate?
Note: This is post #98 in a weekly video series on basic economics. If someone has a job, they’re defined as “employed.” But does that mean that everyone without a job is unemployed? Not exactly. For the official statistics, you have to meet quite a few criteria to be considered unemployed in the U.S., explains economist Alex Tabarrok. In this video by Marginal Revolution University, Tabarrok explains how unemployment is officially defined by the federal government. (If you find the...
Why we have a moral obligation to promote innovation
Note:This article is part of the ‘Principles Project,’ a list of principles, axioms, and beliefs that undergirda Christian view of economics, liberty, and virtue. Clickhereto read the introduction and other posts in this series. The Principle:25A — We have a moral obligation to promote innovation. The Definitions: Innovation –Something (i.e., an idea, method, process, product, service, tool, etc.) that isnew, original, or improved which creates value and is uniquely useful. (Source) Human flourishing – A holistic concern for the spiritual,...
Rev. Tim Keller on the myth of omnicompetence
One of the dangers of forming a modern identity around achievement is what Rev. Tim Keller calls “the success-failure whiplash.” Succeeding in one area can cause people to believe they have the skills and inner qualities to do anything, and everything, alone – that they are petent. Keller discussed the process in his address to the Acton Institute’s 2018 annual dinner, which he titled “Identity, Business, and the Christian Gospel”: If your identity has e your business and your profession,...
The spiritual core of political hate
“A new study confirms that creeping tribalism has Americans bitterly divided, acrimonious, and dismissive of others based on political differences,” says Rev. Ben Johnson in this week’s Acton Commentary. “Behind this animosity lies a spiritual principle that Rev. Timothy Keller touched on during his address at this year’s Acton Institute annual dinner.” The problem, Keller said, is that people chose a “modern identity” by defining pletely with one, selected characteristic or feeling. Often, it is a profession, especially high-status careers...
The spiritual core of political hate
A new study confirms that creeping tribalism has Americans bitterly divided, acrimonious, and dismissive of others based on political differences. Behind this animosity lies a spiritual principle that Rev. Timothy Keller touched on during his address at this year’s Acton Institute annual dinner. Keller, pastor of Redeemer Presbyterian Church in Manhattan, offered his insights in a lecture he titled “Identity, Business, and the Christian Gospel” – but its lessons go to the heart of every human being. Who am I?...
Radio Free Acton: Hot, dirty, noisy: Purposeful work at Kerkstra Precast; Media blackout on Gosnell movie
On this episode of Radio Free Acton, award winning news anchor Anne Marie Schieber speaks with James Morgan about his job at Kerkstra Precast, an industrial plant. We get a look into James’ daily work and how he finds meaning and motivation in what he does. Then, Caroline Roberts talks to Phelim McAleer, co-producer of the newly released film “Gosnell: The Trial of America’s Biggest Serial Killer,” successful with audiences but since it’s release the film has faced harsh backlash,...
Manna and the land: God’s methods of miraculous provision
Throughout the Bible, we see miraculous moments of God’s immediate provision. He provides manna and quail for the Israelites in the wilderness (Ex. 16). For Elijah, he uses ravens to deliver bread and meat and later supplies daily meal and oil (1 Kings 17). He provides wine for the wedding at Cana (John 2). He multiples loaves and fishes among Jesus’ disciples to feed a crowd of five thousand (Matthew 14). Yet if God is able to intervene and provide...
Rev. Tim Keller on how the modern identity presents problems for life and business
On October 17, Rev. Timothy Keller delivered a keynote speech to a sold-out audience at the Acton Institute’s 2018 Annual Dinner. In his address, Keller explains the concepts of “traditional identity” and “modern identity” and their prevalence in present-day culture. Modern identity, claims Keller, presents serious problems for the contemporary business world. Keller presents the Gospel as the answer to modern issues of identity. From engaging work by scholars such as Charles Taylor to reciting lyrics from Disney’sFrozen, Keller’s municates...
The enduring influence of Russell Kirk’s ‘The Conservative Mind’
This is the seventh in a series celebrating the work of Russell Kirk in honor of his 100th birthday this October. Read more from the serieshere. Back in the glory days of the Reagan years, I considered myself a rather hard-core libertarian. My mom—one of the most brilliant and well-read persons I have ever known (and ever will)—was a devout Goldwaterite and munist. She read everything under the sun, and she encouraged me to do the same, never censoring anything....
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved