Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Apr 6, 2026 4:33 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
5 facts about Inauguration Day
Tomorrow is Inauguration Day, a day of ceremonies to mark the peaceful transition of federal executive power within the United States government. Here are five facts should know about the most important date (after Election Day) on the political calendar: 1. Inauguration Day used to be held on March 4. That was the original date (March 4, 1789) when the Confederation Congress, which operated under the Articles of Confederation, handed off power to the new constitutional government. When the new...
Explainer: What you should know about ‘school choice’
In honor of the seventh annual National School Choice Week, here are some facts you should know about school choice in America. What does “school choice” mean? The term “school choice” refers to programs that give parents the power and opportunity to choose the schools their children attend, whether public, private, parochial, or homeschool. Why is school choice necessary? While there are some excellent public schools in America, many students are trapped in schools with inadequate facilities, substandard curriculum, and...
How to pray for President Trump
At noon today, Donald J. Trump was sworn in as the 45th President of the United States. Whether you supported or opposed him, as Christians we have a specific duty to our new president: to pray for him. The Apostle Paul urges us to make “petitions, prayers, intercession and thanksgiving” for “for kings and all those in authority, that we may live peaceful and quiet lives in all godliness and holiness” (1 Timothy 2:1). When we fail to pray for...
Samuel Gregg on Tocqueville and democracy’s fall in America
Image from Wikimedia ‘Democracy in America’ by Alexis de Tocqueville is a 19th century book that serves as a guide to explain how the American political system has evolved into its current state. In this book, Tocqueville describes what he noticed about American democracy when he traveled through the country in 1831. Acton Institute Director of Research, Samuel Gregg gives insight in a new article at Public Discourseof what Tocqueville noticed about American democracy and how it might be susceptible...
Video: Rev. Sirico on religion and the inauguration of President Trump
Acton Institute President Rev. Robert A. Sirico joined host Neal Cavuto this morning on Fox News Channel’sCost of Freedom to mentary on the national prayer service held today at the Washington National Cathedral as part of the activities surrounding the inauguration of President Donald Trump, and to examine the role the civil religion has played throughout American history. You can view the interview below. ...
Video: Avik Roy on the end of cultural conservatism as we know it
BillBuckley and Russell Kirk were leaders in buildinga movement of cultural conservatism to counter the dominant strain of liberalism that governed American politics following World War II. Thismovement would eventually lead to the presidency of Ronald Reagan and the end of the Cold War, as well as the riseof Republican congressional leadership in the 1990s and following. But with the fall munism and a changing American society, cultural conservatism finds itself at a crossroads. Avik Roy, president ofThe Foundation for...
Called to the coalfields: How an Appalachian church is spurring economic action
Due to a rapidly changing economy and a range of excessive regulations from the federal government, the American coal mining industry is facing serious challenges. For states like West Virginia, the effects are particularly painful, as mining towns munities struggle under a projected 23% decline in related jobs in recent years, leading vast numbers of residents to leave the state altogether. Yet for Travis Lowe, pastor of Crossroads Church in Bluefield, West Virginia, the severe economic losses and doom-and-gloom forecasts...
How information and incentives solve economic problems
Note: This is post #18 in a weekly video series on basic microeconomics. To solve economic problems we need to solve information and incentive problems. In this video, Alex Tabarrok looks at how Nobel Prize-winner Friedrich Hayek described the price system and its approach to solving the information problem. In this video, we take a look at how Nobel Prize-winner Friedrich Hayek described the price system and its approach to solving the information problem. (If you find the pace of...
Audio & Video: Sirico & Bonicelli on the Trump Administration
As the Trump Administration begins its work this week, the media continues to call on the Acton Institute for analysis mentary, both in the US and abroad. Internationally, Acton Director of Programs and Education Paul Bonicelli joined hostAlex Jensen ontbs eFM 101.3’s “This Morning” program in Seoul, South Koreaon January 22ndto discuss the economic challenges facing the ing administration, and the likelihood of potential trade conflicts between the United States and other nations down the road based on the protectionist...
Explainer: What you should know about the Trans-Pacific Partnership (TPP)
Earlier today, President Trump took action to formally abandon the Trans-Pacific Partnership. Here is what you should know about the agreement and why it matters. What is the Trans-Pacific Partnership? Five years in the making, the Trans-Pacific Partnership (TPP) was a trade agreement between the United States, Australia, Canada, Japan, Malaysia, Mexico, Peru, Vietnam, Chile, Brunei, Singapore, and New Zealand. The twelve countries in the proposed prise roughly 40 percent of global G.D.P. and one-third of world trade. The purpose...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved