Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Oct 6, 2024 11:22 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
Easy Cases Make Bad Law
Earlier this week the University of Oklahoma chapter of Sigma Alpha Epsilon was caught on video engaging in a racist chant. The video shows several men wearing tuxedos and riding on a charter bus singing that black students, which the men refer to with a racial slur, could never join their fraternity. The chant also alluded to lynchings. Language warning: The video below contains offensive and racist language. The reaction to this vile, disgraceful video was swift and, for the...
No, Snowflake, We’re Not Responsible for Your Student Loan Debt
“No snowflake in an avalanche ever feels responsible,” said Stanisław Jerzy Lec. Whether that is true in nature, it’s certainly seems to be true for many of the precious little snowflakes who find themselves, after making poor educational decisions, buried under anavalanche of student loan debt. Consider, for instance, this op-ed by Tad Hopp, a student in “his last semester in the MDiv program at San Francisco Theological Seminary.” Before we delve into what will be one of the worst...
How to find joy and meaning in your work
One of our favorite coffee shops when we lived in Washington, D.C. in the 1980s was The Daily Grind. The name’s humorous wordplay about everyday work and the delicious fresh-roasted coffee made us smile. But too many of God’s people are not smiling as their alarms sound and they head to their daily tasks. Recent surveys reveal their deep dissatisfaction in their jobs, with few finding joy and significance in their efforts. Last year, Barna Group reported 75 percent of...
Peace and Provision at a Pizza Shop
Rosa’s Fresh Pizza in Philadelphia has now given away more than 10,000 slices of pizza, using a unique “pay-it-forward” system where “customers can pre-purchase $1 slices for those in need.” The story is inspiring on a number of levels, illuminating the powerof business to channel the best of humanity toward plexneeds in new and unexpected ways, often quite spontaneously. The owner, Mason Wartman, left his job on Wall Street to start the restaurant, following his vocational aspirations and bringing a...
Acton Commentary: ‘Christ and Crisis’ Today
Charles Malik. Photo credit: LIFE Magazine. In today’s Acton Commentary, I highlight a little book by the Lebanese diplomat, philosopher, and theologian Charles Malik, Christ and Crisis (1962). With regard to its continuing relevance, I write, Malik would urge us to have the courage to take up our crosses today, each in our own capacities petencies, putting the life of the spirit first, not settling for easy answers and scorning all distractions. “There are three unpardonable sins today,” wrote Malik...
7 Figures: Global Violence Against Women
The United Nations’ Commission on the Status of Women recently released a report that includes data on gender-based violence. Here are seven sets of figures on violence against girls and women that are based on their data: 1. Recent global estimates show that 35 percent of women worldwide have experienced either physical and/or sexual intimate partner violence or non-partnersexual violence in their lifetime. While there is some variation across regions, all regions have unacceptably high rates of violence against women....
God, Reason, and Our Civilizational Crisis
The way that a culture understands the nature of God shapes its conception of man, reason, and society, says Acton Institute Director of Research Samuel Gregg. Though this presents enormous challenges for the Islamic world, it also has significant implications for the sustainability of Western civilization: In 1992, the political scientist Samuel Huntington ignited a debate among scholars of politics and international affairs when he proposed that civilizational differences would be an increased source of conflict in a post-Cold War...
Interview: High School ‘Acton Club’
Members of the “Acton Club” of West Catholic High School Culture has either an overly optimistic view of youth culture, or an overly dour and depressing one. However, neither view is entirely true, nor are such disparate opinions very helpful. The unavoidable truth is this: younger generations will have to bear increasingly more difficult levels of financial, and societal responsibility in ing years. To put it mildly their future will not be an easy walk in the park. However, in...
Did Cardinal Turkson Lift The Curtain On Upcoming Ecology Encyclical?
There has been much speculation regarding Pope Francis’ ing encyclical on ecology. Will he side with those who raise the alarm on climate change? Is he going to choose a moderate approach? Will the encyclical call for changes to help the poor? Commonweal’s Michael Peppard seems to think Cardinal Peter Turkson, the Ghanaian prelate and President of the Pontifical Council for Justice and Peace, has lifted the curtain on the pope’s ing encyclical. Cardinal Turkson gave a lecture last week,...
No, Socialism Wouldn’t Succeed ‘If Only Men Were Angels’
When arguing about the merits of a free economy, its defenders often give way to apeculiar line of reasoning that goes something like this: “Socialism would be wonderful if it actually worked, and it could actually work if only men were angels.” Such claims are meantto framesocialists as foolish idealists obsessed with their sillyutopias. But for those of us who believe there’sa certain idealism to thefree society, it’s a rather appalling concession. Indeed,the fundamental problem with socialism isn’t so much...
Related Classification
Copyright 2023-2024 - www.mreligion.com All Rights Reserved