Home
/
RELIGION & LIBERTY ONLINE
/
Untangling the roots of wealth inequality is more complex than it appears
Untangling the roots of wealth inequality is more complex than it appears
Apr 26, 2026 6:05 AM

Inequality is one of those topics that is sure to spark quick and intense debate, wherever and whenever it is raised. In any such discussion, however, facts matter. That’s one reason why my attention was recently drawn to an article published in early December at Real Clear Markets, titled “Inequality Is Decidedly Not the Problem In the U.S.” The author, Aaron Brown, writes:

There is a simple theory of inequality in which rich people have nearly all the wealth and e, and do nearly all the spending, while poor people struggle along with the minimum of those things necessary for survival. It’s understandable that some people think this way. In many places in the world today, and for plex societies in human history, the picture is accurate. Moreover, the rich elite usually hoards most of the economic opportunity, civil freedoms, political power, legal status and other good things for itself and its children.

But in the U.S. today, things are plicated. Some people have wealth, others have e and still others do the spending. These things overlap but are not identical. Wealth, e and consumption also overlap with political influence, legal favoritism, social prestige and other non-monetary assets, but the correlation with money is far from perfect.

This matters because if inequality is the problem, redistribution is the solution. The problems of the poor are caused by the hoarding of the rich. But if there are many different types of needy people due to different problems, redistribution based on wealth, e or consumption may end up taking from the needy and giving to fortable—doing considerable damage to civil rights, economic incentives and social trust along the way—and never addressing the root problems.

The whole article repays careful reading for those genuinely interested in thinking about what is (and isn’t) inequality, when it matters (and when it doesn’t matter) economically, as well as learning some of the more salient facts about inequality in America. Yes, inequality is much plicated than we realize and many of the perceived solutions turn out to exacerbate the problems.

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
‘No Higher Calling’
Courtesy of Rev. Eric Andrae, Lutheran pastor Bo Giertz offers us a great exposition of the “great cloud of witnesses” (Hebrews 12:1) and sums up the importance of the pastoral ministry. “‘It is a great thing to receive a heritage…. It is wonderful to stand in the same pulpit, to learn of [those who have gone before us,] and to carry forward the work they began. Sir…, can anything be greater than to be a pastor in God’s church?'” (Bo...
For our freedom and yours: Remembering solidarity
Today marks the 25th anniversary of the formation of Poland’s Solidarity movement. Samuel Gregg says that Solidary gives us a view of a labor union whose “stand for the truth about the human person and against the lie of Marxism contributed immeasurably to the collapse of one of the two great totalitarian evils that disfigured the twentieth-century.” Read the full text here. ...
Prayer for Labor Day
From the PowerBlog archives: Almighty God, you have so linked our lives one with another that all we do affects, for good or ill, all other lives: So guide us in the work we do, that we may do it not for self alone, but for mon good; and, as we seek a proper return for our own labor, make us mindful of the rightful aspirations of other workers, and arouse our concern for those who are out of work;...
Dunn deal: A challenge for the NFL
Pro running back Warrick Dunn, a native of Louisiana, is challenging every NFL player (other than New Orleans Saints) to donate at least $5,000 to hurricane relief efforts. “If we get players to do that, that would amount to $260,000 per team. I have heard from so many players both on my team and around the league who just want to do something. Well, this is the best thing that we can do and it’s something we should do,” he...
Robertson’s fatwa
Rev. Robert Sirico responds to Pat Robertson’s highly-publicized call for the assassination of Venezuelan president Hugo Chavez. “What is needed here, I believe, is a time of reflection. Christianity is not a national religion. It is does not regard every enemy of the nation-state as worthy of execution. It prefers peace to war. It chooses diplomacy over threat. It respects the right to life of everyone, even those who have objectionable political views,” he writes. Read the full text here....
It’s wealth not poverty that’s on the rise
The Census Bureau today released a report citing that 37 million Americans lived under the poverty line, a jump of 1.1 million from 2003. “I was surprised,” said Sheldon Danziger, co-director of the National Poverty Center at the University of Michigan. “I thought things would have turned around by now.” What’s missing are the poverty threshold numbers that reveal that a family of four is considered “poor” if family e is below $19,000. What’s actually on the rise is not...
Principled giving
The devastation that we have seen this week in the Gulf Coast region and especially New Orleans is almost beyond our capacity to understand. Our instinct is to do something – anything – to help those in need, but when the crisis is this huge, what does one do? Writing for National Review Online, Karen Woods, the Director of Acton’s Center for Effective Compassion, lays out some ways that we can most effectively use our resources to help the many...
Start where you are
Like everyone else outside the Gulf Coast (i.e., not a direct victim or a tireless rescue worker, volunteer, or military member there to help), the TV remote has e my panion. The challenges are unprecedented–which is hard to fathom after 9/11. We are all passionately concerned that Katrina victims be safely and humanely moved out of harm’s and ill-health’s way. But that is only one small step. Once the scope of disaster and the need became munities all over the...
The state of nature in New Orleans
Thomas Hobbes once described human life in the “state of nature” as that of war, in which, in addition to the lack of merce, and the arts, there is “continual fear, and danger of a violent death. And the life of man, solitary, poor, nasty, brutish, and short.” The ing out of New Orleans give us a glimpse of the truth of Hobbes’ observation. When evacuations were made mandatory prior to Hurricane Katrina’s landfall, those who were unable to leave...
Lootin’ in Louisiana
Following the devastation in New Orleans from Hurricane Katrina, bands of looters are running rampant throughout the city. Things have gotten so bad that New Orleans Mayor Ray Nagin “ordered virtually the entire police force to abandon search-and-rescue efforts and stop thieves who were ing increasingly hostile.” According to reports, “Looters used garbage cans and inflatable mattresses to float away with food, clothes, TV sets — even guns. Outside one pharmacy, mandeered a forklift and used it to push up...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved