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 27, 2026 7:51 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
Ethics & Economics reviews
The Acton Institute has placed three titles from the Lexington Books Studies in Ethics & Economics series, edited by Acton director of research Samuel Gregg. The first is Within the Market Strife: American Catholic Economic Thought from Rerum Novarum to Vatican II, by Acton research fellow Kevin Schmiesing. The reviews are here. Daddypundit says, “Schmiesing has made his book accessible to persons of all faiths regardless of their own background. He has meticulously researched his book and it shows in...
A Stark contrast
Kishore has helpfully pointed out the discussions going on elsewhere about Rodney Stark’s piece and the related NYT David Brook’s op-ed. He derides some of menters for their lack of economic understanding, but I’d like to applaud menter’s post. He questions, as I do, the fundamental validity of Stark’s thesis (which essentially ignores such an important strand of Christianity as Eastern Orthodoxy). Among other astute observations, Christopher Sarsfield asks: “Was it the principles of Christianity that put the ‘goddess of...
Amy Welborn’s blog on capitalism and Catholicism
The Acton debate on the relationship has featured blog posts on Rodney Stark and David Brooks’s column on Starks. Amy Welborn’s site has more in these two posts (here and here), with a somewhat lively debate in ments sections. Several of ments regard Max Weber’s thesis on the Protestant work ethic and capitalism, and reveal a misunderstanding of what makes for economic growth in Ireland and the lack of it in Latin America. It’s pretty obvious there are few Actonites...
Public v. private services
Fast Company Now is reporting that “for the first time, customer satisfaction with federal agency Websites has surpassed offline government services,” according to an American Customer Satisfaction Index report. What is especially noteworthy, however, is that online private sector services consistently rank higher in satisfaction than their governmental counterparts. “Where the gap between offline public and private services has narrowed, the report said, e-government is trailing far behind the private sector online. That, said ACSI chief Claes Fornell, shows room...
“Brain Drain” reconsidered
A while back I mentioned a new ing out questioning conventional wisdom on the “brain drain” problem caused by emigration from developing nations. The book will not be out for a while yet, but the author, Michele Pistone, has a long post on Mirror of Justice describing her findings and how they relate to traditional moral concerns raised by Catholic social teaching. ...
The Coventry Carol
The Coventry Carol (Words Attributed to Robert Croo, 1534; English Melody, 1591). Click here for MIDI version (and sing along!) Lully, lulla, thou little tiny child, By by, lully lullay. Lully, lulla, thou little tiny child, By by, lully lullay. O sisters, too, how may we do, For to preserve this day; This poor Youngling for whom we sing, By, by, lully, lullay. Herod the King, in his raging, Charged he hath this day; His men of might, in his...
Perusing Peru
Fr. Philip De Vous, chaplain of Thomas More College in Crestview Hills, KY and an adjunct scholar of public policy at the Acton Institute, writes of a recent trip to see operations of the Doe Run Company in Lima, Peru. It seems that the Doe Run Company has been accosted by “criticism from certain journalists and certain sectors of the Catholic Church and other Christian denominations” regarding its practice of business ethics. What Fr. De Vous experienced in Peru, however,...
One more reason…
Here’s the best ad hominem (no pun intended) reason to deplore the creation of chimeras: Stalin, the self-proclaimed “Brilliant Genuis of Humanity,” wanted them. The Scotsman reports that “Soviet dictator Josef Stalin ordered the creation of Planet of the Apes-style warriors by crossing humans with apes, according to recently uncovered secret documents.” According to the documents, the order came from Stalin’s wish to create a race of super-soldiers: “I want a new invincible human being, insensitive to pain, resistant and...
Petrol-socialism
Predictions, anyone? Chavez continues to flex his socialist muscles as he has now given ExxonMobil an ultimatum: either give him the controlling interest in pany, or lose their Venezuelan operation altogether. This story is notable because ExxonMobil is the pany who has thus far refused Chavez’s “offer they can’t refuse.” Now, I don’t think anyone had any misconceptions that Chavez would be a ‘nice socialist’, but what was that proverb about being doomed to repeat history? What worries me about...
There’s no such thing as “free” health care
Remember: when you recieve a “free” service from the government, it’s not actually free. You’re paying for that service through your taxes. And when the government sets up a monopoly in an area like health care, it’s probably going to end up being more expensive and cheaper at the same time – more expensive because people are less likely to use a “free” service prudently, and cheaper because the overuse of the service will force officials to impose major restraints...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved