Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Jan 11, 2026 8:21 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
A Culinary Introduction to the Devout Life
Want to be more disciplined in your spiritual life? Chow down with the saints. Taste and see that it is good. Read More… es a time when you yearn to live out your faith more deeply. This can mean different things for different believers, but it usually entails taking up a variety of personal disciplines, returning to tradition, mitting oneself to prayer and introspection. For harried souls making our way in a hectic, secularized world, an idealized spiritual life is...
Was the British Empire Evil?
It’s a given among most academics today that Britain’s empire and economic success was the result of the depredation of native cultures and gross exploitation. But what if it’s not true? Read More… There is edy sketch from British television, now made immortal by the internet, in which a Nazi soldier, waiting for Russian troops to advance on his army’s position, uneasily examines the skull insignias on his uniform and wonders if they might, in fact, be the baddies. Today...
Freedom of Religion Is Inherently Good
In many parts of the world, and even among some thinkers in the United States, freedom of conscience is seen as a threat to order and decency. But free choice, especially in religion, aligns perfectly with our free wills and is necessary for true human flourishing. Read More… Growing up in Yemen, a conservative branch of Islam was ‎very popular in my household, school, and mosque. Freedom of ‎religion was a myth frowned upon. It was thought that Islam ‎is...
There Are No Alternatives to Free Market Capitalism
Exploring Catholic social teaching in relation to economics is fine, but if we’re too open-minded about seeking a new mon good” capitalism, our brains might fall out. Read More… Alexander William Salter’s new book, The Political Economy of Distributism: Property, Liberty, and the Common Good, is an odd fish. It begs questions, contains numerous chapters that consist mostly of lengthy quotations, and at times seems to contradict itself, yet in the end it affirms an essential truth that we may...
Spreading the Flame: The Pioneering Ministry of William Grimshaw
The 18th-century evangelical revival is believed to have saved England from a revolution akin to France’s. Among the lesser-known names who brought gospel hope to classes alienated from the church was a man whose tenacity at saving souls made almost as many enemies as friends. Read More… We have discussed so far the nature of the 18th-century evangelical revival in Britain through the eyes of the most well-known names, John and Charles Wesley and George Whitefield. From the 1740s munities...
European Union Demands Immediate Release of Jimmy Lai
Growing concerns over deteriorating human rights situation in Hong Kong, and the persecution of political dissidents, prompt EU’s call for immediate action. Read More… The European Parliament condemned the persecution of jailed newspaper publisher and pro-democracy activist Jimmy Lai, calling for his immediate and unconditional release from prison and the repeal of Hong Kong’s national security law (NSL), in a resolution passed on June 15, according to Voice of America. The resolution passed with 483 votes in favor, 9 against,...
Jimmy Lai Appeals National Security Committee Decision—Again
Lai’s legal team is arguing that mittee’s decision, which directly affects his personal freedoms and the rights of Hong Kong citizens, should be subject to judicial review. Read More… Jimmy Lai, the imprisoned Hong Kong media mogul and pro-democracy activist, has lodged an appeal after his previous attempt to challenge a decision made by the National Security Committee was rejected, according to the Hong Kong Free Press. The high-profile entrepreneur and former Apple Daily publisher is seeking to overturn mittee’s...
Bridging the Church-State Divide
This sixth installment of a short history passionate conservatism explores what it meant to finally get into the White House and see policies implemented. Skepticism was not in short supply. Read More… In 2000, I didn’t realize until it was too late that my astronomically exaggerated proximity to presidential candidate George W. Bush would make me a target. For example, I had said in 1998 that women volunteers had run charitable enterprises in the 19th century, so women’s entrance into...
Can Fraternities Save America?
There’s a movement afoot to abolish Greek life nationwide. But what if frats are actually great places to form virtue and character in young men and not just reboots of Animal House? Read More… Dr. Anthony Bradley is on a quest to make fraternities virtuous again. “This is the craziest thing I’ve ever done,” he tells me. “I’m essentially bailing out water on the sinking Titanic.” The problem he’s confronting is well engrained in American culture and media: a quick...
This Fathers’ Day, Remember that Property Is Holy
What can a Christian socialist teach us about being a father and faithful steward of God the Father’s gifts? Plenty. Read More… The French Revolution of 1848, which began on February 22 in Paris, led to the fall of the July Monarchy in France, the founding of the Second Republic, a wave of democratic revolutions across Europe, a revival of European liberalism, and the spread of various forms of socialism. Once again, just as in 1789, the old order of...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved