Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Jan 19, 2026 1:45 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 Privilege of Responsibility
This past weekend in Chicago a luncheon was held for the kickoff of college football’s Big 10 Conference. Michigan State University quarterback, Kirk Cousins, was featured at the conference, giving an honorary talk on his journey through four years in college football, and the important lessons he took away from his experience. Cousin’s stresses the opportunity given to him at MSU was one of privilege. Unlike most haughty star athletes, Kirk Cousins seem to understand what it truly means to...
The Patriot Act and the Threat to the Rule of Law
Three of the Acton Institute’s core values are dignity of the person, the rule of law and the subsidiary role of government.The Patriot Act, passed in 2001, violates these fundamental principles. In the United States and elsewhere, freedom and protection against unreasonable government intrusion have been considered essential to a democratic society.Near the start of the American Revolution, the Founding Fathers and the American colonists had grown tired of English interference. A particularly inflammatory usage of law was “the British...
Rev. Sirico: The Church as the Bride of Caesar
From the “What Would Jesus Cut” campaign to the Circle of Protection, Jim Wallis’s liberal activism rooted in his “religious witness” has grabbed headlines across the nation . Wallis advocates for the “protection” of the poor and vulnerable by pushing for expansive government welfare programs. However, has Wallis effectively analyzed all of the programs for efficiency before advocating for their preservation? In the National Review Online, Rev. Sirico raises many concerns about the Circle of Protection campaign underway by Wallis...
Circling the Sacred Debt Wagons
In my mentary addressing the nation’s debt crisis I included words from Admiral James B. Stockdale. The full es from an essay on public virtue from the book Thoughts of A Philosophical Fighter Pilot. In his 1988 publication, Stockdale declared: Those who study the rise and fall of civilizations learn that no ing has been surely fatal to republics as a dearth of public virtue, the unwillingness of those who govern to place the value of their society above personal...
What the Common Good Isn’t
It looks like Congress will vote later today or this evening to raise the debt ceiling and avert a possible default by the United States Treasury. How the debt promise will fair when measured against Acton’s Principles for Budget Reform it is too early to know, but one thing is certain: if the deal contains a single budget cut for even the most ineffective of social programs, we’ll hear screams of protest from Jim Wallis and his Circle of Protection....
Rev. Sirico: Wealth Creation, Not Wealth Redistribution
Does the Circle of Protection actually help the poor? What may be surprising to many of those who are advocating for the protection of just about any welfare program is that these may not alleviate poverty but only redistribute wealth. Rev. Sirico explained in an interview with the National Catholic Register how the discussion should be about wealth creation, not wealth redistribution: Father Robert Sirico, president of the Acton Institute, a conservative think tank based in Grand Rapids, Mich., suggested...
Call of the Entrepreneur Continues to Air on BIZ TV
Acton Institute would like to invite you to tune into BIZ TV for showings of The Call of the Entrepreneur, the first documentary released by ActonMedia. BIZ TV will be presenting the film today (July 29) at 5:00 pm EST, tomorrow (July 30) at 8:00 am EST, and Sunday, July 31 at 7:00 pm EST. BIZ TV is a network focused on airing inspirational true stories and informative talk shows that educate and motivate America’s entrepreneurs and small business owners,...
John Locke and a Chinese Investiture Controversy
Acton’s Director of Research Dr. Samuel Gregg has two new pieces today, in Public Discourse and The American Spectator. The first is a response to Greg Forster’s“Taking Locke Seriously” on June 27 in First Things. In that article, Forster took issue with Gregg’s June 22 Public Discourse piece, “Social Contracts, Human Flourishing, and the Economy.” Gregg argues, in a July 29 response to Forster titled “John Locke and the Inadequacies of Social Contract Theory,” that Locke’s political thought is based...
Circle of Protection Ads: A Telling Distortion of Scripture
The Circle of Protectionradio advertisementsbeing broadcast in three states right now make their arguments, such as they are, from a quotation of the Bible and a federal poverty program that might be cut in a debt promise. But the scriptural quotation is a serious misuse of the Book of Proverbs, and the claims about heating assistance programs are at best overblown: the ads are really no better than their goofy contemporary piano track. The Circle of Protection, of which the...
Fertile Ground for Farm Subsidy Cuts
Here’s the piece I contributed to today’s Acton News & Commentary: Fertile Ground for Farm Subsidy Cuts By Elise Amyx With debt and budget negotiations in gridlock, and a growing consensus that federal spending at current levels is unsustainable, political support for farm subsidies is waning fast. What’s more, high crop prices and clear injustices are building bipartisan support for significantly cutting agricultural subsidies in the 2012 Farm Bill. The New Deal introduced an enormous number of agriculture subsidy programs...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved