Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Jan 21, 2026 7:35 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
A Rapidly Expanding ‘Sindustry’
As occurrences of preventable diseases increase and the debt deepens, some look to “sin taxes” as an easy to solution to both problems. Thirty-three states have even gone as far as to implement a soda tax in an attempt to curb obesity. At first glance sin taxes seem to be a good idea, but they can actually cause more harm than good. The Mercatus Center at George Mason University has just published a working paper on sin taxes and their...
After Pope Benedict Resigns, Fight Against ‘Dictatorship of Relativism’ Goes On
Today, Acton’s Rome office and the world were stunned by what the Dean of the College of Cardinals said was a “bolt out of the blue”: just after midday Benedict XVI informed the public that he would be stepping down as the Catholic Church’s pontiff and one of the world’s preeminent moral and spiritual leaders, effective on February 28. He will be the first pope to abdicate voluntarily the Seat of St. Peter in nearly 600 years. The last one...
Rev. Sirico on Pope Benedict XVI’s Resignation
The Rev. Robert Sirico offers his thoughts on the announcement this morning from Pope Benedict XVI that he is resigning from the papal office as of February 28. It is a sobering thought to think that the last time a Pope resigned (Pope Gregory XII in 1415), America had not yet been discovered. Yes, the possibility of a Pope’s resignation is anticipated in Canon Law (Canon 332), as long as it is disclosed “properly” and of his own free will....
Media Alert: Rev. Sirico on Real News
Rev. Sirico will be on Real News tonight between 6-7pm EST. You can find the program on Dish Network (ch. 212) and online at Glenn Beck’s internet channel, The Blaze. ...
How a Democratic Education Reformer Became a Supporter of School Vouchers
Michelle Rhee isn’t afraid of controversy. In 2007 she took the job of chancellor of Washington, D.C. public schools, one of the worst districts in the country. Given a free hand by the city’s mayor, she instituted a number of reforms that, while modest and sensible (accountability, standardized testing), were considered “radical” by many residents of D.C. Rhee even fired 266 teachers and defended her actions by saying, “I got rid of teachers who had hit children, who had had...
Pope Benedict Resigns
Shock waves went through Rome at about noon today and the rest of the Catholic, make that the entire, world, as news came that Pope Benedict XVI will resign as Pope on February 28. We’ll have much more from Rome about this tremendous, unprecedented event (Pope Gregory XII resigned in 1415 in very different circumstances). Here’s what Pope Benedict had to say about a Pope resigning in the 2010 interview Light of the World: Q:The great majority of [the sexual...
Historian David McCullough on Work and the Pursuit of Happiness
Pulitzer Prize-winning historian David McCullough is author of popular biographies such as Truman and John Adams, and at 79 years old, he’s still going strong. When asked by Harvard Business Review whether he is ready to retire, McCullough offered some interesting perspective on how he views his work through the American founders’ understanding of the “pursuit of happiness” (HT): I can’t wait to get out of bed every morning. To me, it’s the only way to live. When the founders...
Resource Page on Pope Benedict XVI’s Resignation
Today Pope Benedict XVI issued a statement that he was renouncing his ministry as the Bishop of Rome, effectively abdicating as of February 28, 2013. The Acton Institute has created a resource page that will provide news and analysis of this historic event, and the election of a new pope. You can find the current resources and follow future updates here. ...
Video: Samuel Gregg’s talk at Heritage Foundation on ‘Becoming Europe’
“We’re ing like Europe” captures many Americans’ sense that something has changed in American economic life since the Great Recession’s onset in 2008. An economy once characterized mitments to economic liberty, rule of law, limited government, and personal responsibility appears to be drifting in a distinctly “European” direction. Across the Atlantic, Americans see European economies faltering under enormous debt; overburdened welfare states; high taxation; heavily regulated labor markets; aging populations; large numbers of public-sector workers; and governments controlling close to...
Review: Marvin Olasky on Samuel Gregg’s ‘Becoming Europe’
MarvinOlasky,editor in chief ofWORLD Magazine, just listed Samuel Gregg’s ing Europe: Economic Decline, Culture, and How America Can Avoid a European Future in his mid-Winter roundup of books to read. He says: Samuel Gregg’s ing Europe: Economic Decline, Culture, and How America Can Avoid a European Future (Encounter, 2013) is a lucid account of the Europeanization of America’s political culture not only through quasi-socialistic programs but through personnel. Gregg shows how European leaders typically attend indoctrinating universities and then spend...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved