Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Jan 14, 2026 12:26 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 Challenge to ‘Work-Life Balance’
Upon the recent birth of our third child, I took a brief “vacation” from “work” (quotes intended). The time spent with family was special, joyous, and fulfilling, yet given the extreme lack of sleep, the sudden rush of behavioral backlash from Toddler Siblings 1 and 2, and a host of new scarcities and constraints, it was also a whole heap of work. Needless to say, when I arrived back at the office just a week later, I felt like I...
Why is the State of the Union Always ‘Strong’?
I have a can’t miss prediction: tonight, when President Obama gives his sixth State of the Union address, he will describe the state of the union as “strong.” Admittedly, predicting that the state of our union will be described as “strong” is about as safe a bet as you can make when es to politics. Over the last hundred years presidents have described the State of the Union (SOTU) in various ways — Good (Truman), Sound (Carter), Not Good (Ford)....
Pete Seeger, 1919-2014
Pete Seeger performing the Woodie Guthrie song “This Land is Your Land” at President Obama’s “We Are One” Inaugural Concert, January 19, 2009. Environmentalist, agent provocateur, leftist activist, recovering Communist and ardent redistributionist – all apply to the folksinger who died Monday in New York at the age of 94. Pete Seeger, for better or worse, answered to all of the above adjectives but it’s his legacy as a songwriter and performer for which this writer prefers to remember him....
Evaluating Net Neutrality via Walter Eucken
On January 14, as Brad Chacos so perfectly put it for PC World, “a Washington appeals court ruled that the FCC’s net neutrality rules are invalid in an 81-page document that included talk about cat videos on YouTube.” Reactions have been varied. Joe Carter recently surveyed various arguments in his latest explainer. For my part, I mend the German, ordoliberal economist Walter Eucken as a guide for evaluating net neutrality, which as Joe Carter put it, “[a]t its simplest …...
Poverty, Development, and the Idealist
In the latest EconTalk podcast, Nina Munk, journalist and author of The Idealist: Jeffrey Sachs and the Quest to End Poverty, talks about how she spent six years following Jeffrey Sachs and the evolution of the Millennium Villages Project — an attempt to jumpstart a set of African villages in hopes of discovering a new template for development. Munk details the great optimism at the beginning of the project and the discouraging results after six years of high levels of...
Actually, We Won the War on Poverty
“Why, if we have made such great strides reducing poverty,” asks Scott Winship, “is there such widespread belief that, to quote Ronald Reagan, ‘We fought a war on poverty, and poverty won’?” We won the War on Poverty in the sense that the prevalence of material hardship has declined. According to Meyer and Sullivan, just 8 percent of Americans live at the low standard of living endured by a third of Americans in 1963. But it was a limited and...
Economic Facts: More Gut-Wrenching Than ‘Fun’
gives us a list of “fun” facts about the economy. Of course, “fun” is used in an ironic way, which e clear when you look at just how dreary these facts are: $1.8 Trillion: Cost Of ObamaCare’s Coverage Provisions From 2014 To 2023 (CBO, 7/30/13)$1 Trillion: The Total Student Debt Held By Americans. (Josh Mitchell, “Student-Loan Debt Slows Recovery,” The Wall Street Journal’s Real Time Economics, 12/30/13) $174 Billion:Federal Budget Deficit For The First Three Months Of FY2014. (U.S. Treasury...
‘The Monuments Men:’ Art Matters
Robert M. Edsel’s The Monuments Men: Allied Heroes, Nazi Thieves, and the Greatest Treasure Hunt in History is a terrific book regarding a part of World War II history that few are aware of. One of Hitler’s goals was to amass great art for his personal collection, and to build a museum and a cathedral in Linz, Austria. What Edsel calls a “backwater of factories and smoke” would e, in Hitler’s vision, a cultural center to rival anything Europe had...
Acton University 2014 Speaker Spotlight: Ross Douthat
The core economic challenge facing the American experiment is not e inequality per se, but rather stratification and stagnation —weak mobility from the bottom of the e ladder and wage stagnation for the middle class. These challenges are bound up in a growing social crisis— a retreat from marriage, a weakening of religious munal ties, a decline in workforce participation— that cannot be solved in Washington D.C. But economic and social policy can make a difference nonetheless, making family life...
Presuming the Best
Kierkegaard once wrote, “The majority of men are subjective toward themselves and objective toward all others, terribly objective sometimes–but the real task is in fact to be objective toward one’s self and subjective toward all others.” In this week’s Acton Commentary, “Discounting the Unseen,” I explore our responsibility to presume the best of others, particularly with regards to what remains unknown or assumed about them. This is a significant task given our natural propensity to excuse ourselves and to condemn...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved