Home
/
RELIGION & LIBERTY ONLINE
/
What Every Christian Should Know About Income Inequality
What Every Christian Should Know About Income Inequality
May 27, 2026 1:19 AM

In his recent State of the Union address, President Obama has signaled that e inequality will be his domestic focus during the remainder of his term in office. The fact that the president considers e inequality, rather than employment or economic growth, to be the most important economic issue is peculiar, though not really surprising. For the past few years the political and cultural elites have e obsessed with the issue.

But what should Christians think, and how should we approach the issue? Should we also be concerned? And if so, what should we do about it?

Here are ten points about e inequality that every Christian should understand:

1. es are measured in money — and money is not wealth.

e inequality is not in itself an economic problem. The simplest way to illustrate this point is to provide a simple “solution”, for there is a simple method that would lead to perfect e equality.

The first step is to calculate the number of earners and rank their es from lowest to highest. For example, let’s say a country has 100 million workers, with the lowest workers paid $10,000 a year and the highest earning an annual salary of $1 million a year.

The second step would be for the government to print enough money to equalize all the es. For instance, a worker who was making $10,000 a year would get a check from the government for $990,000 while the person making $1 million would get no check at all. Everyone else would get a check for the difference between their e and $1 million dollars.

The result is that all 100 million workers would then have an e of $1 million – the problem of e inequality would be solved!

If that seems a bit too easy, it’s because (a) e inequality is not in itself an economic problem, and (b) es are measured in money, and money is not wealth. A country’s primary economic goal is not to make sure everyone has an equal amount of money, but to improve people’s standards of living.

“The money itself is not wealth,” says Don Boudreaux, “Otherwise the government could make us all rich just by printing more of it. From the standpoint of a society as a whole, money is just an artificial device to give us incentives to produce real things — goods and services.”

2. The existence of e inequality is generally a sign of a fair distribution of es.

Would it be fair if, as in the example above, every worker earned $1 million? Most people (except mitted Marxists) would admit that it would not be fair to pay everyone the same despite differences in such factors as experience, productivity, and work ethic. The existence of some e inequality is therefore a sign of a fair distribution of es.

While this may seem obvious, it’s necessary for understanding that discussions about e inequality are never really about equalizing some or even most es. Rather they are, as we’ll discuss in #8, an attempt to justify wealth redistribution.

3. Both low and high rates of e inequality can be signs of unfairness.

e inequality is usually measured by the Gini coefficient, which measures the inequality among values of a frequency distribution for various levels of e. A Gini coefficient of zero expresses perfect equality, where all values are the same (as in our first example where everyone has the same e). A Gini coefficient of one (or 100%) expresses maximal inequality among values (for example where only one person has all the e).

As we’ve shown, it would be as unfair (and counterproductive) for everyone to make the same e as it would be for only one person to make all the e. So what would be the ideal Gini coefficient? There isn’t one, for that number alone tells us nothing about the living standards of a country.

For example, in 2010 both Bangladesh and the Netherlands had an e Gini index of 0.31. Yet while they had the same level of e equality, there is a vast difference between their per capita es: $1,693 in Bangladesh and $42,183 in the Netherlands. By itself e inequality doesn’t tell us anything about economic flourishing. A country’s Gini coefficient could fall and yet the poor get poorer, or the Gini coefficient could rise while everyone is getting richer

4. e inequality is not the same as economic inequality

Some people confuse these two terms but they are not interchangeable. As economist Scott Sumner explains, you could have no economic inequality and still have enormous e inequality.

5. Measures of e inequality are meaningless because es are not zero-sum

At the popular level, almost all discussions of e inequality are based on the zero-sum fallacy.

“The Zero Sum Game is one of the great economic fallacies,” as Samuel Gregg explains. “It assumes that if one person gets rich, it must mean that someone else gets poorer. That’s reliant upon a static view of wealth. It’s like a pie; the idea that there’s just one pie, and the pie can’t grow.”

“In market economies and dynamic, open economies what you’ll find is that the pie grows. This is very important, because what that means is that everyone can start to get out of poverty.”

Imagine a country in which in Year #1 100 workers made $50,000 a year. In Year #2, however, 99 workers made $50,000 a year and 1 worker – let’s call him Bill Gates – made $1 million a year. For zero-sum e inequality thinkers, this is not possible. For Bill Gates to make $1 million, the 99 other workers would have to earn less since the economic pie is static.

Of course, that is not the way it works in the real world. Bill Gates didn’t take e away from other people, he created new wealth for both himself and millions of other people.

Unfortunately, many people base their opposition to e inequality on zero-sum thinking. Even worse, though, many economists and politicians exploit this particular form of ignorance for their own purposes (mainly #8).

6. e inequality and poverty are separate issues.

The most charitable interpretation for why Christians believe that e inequality is an important issue is because they assume it is a proxy for poverty. If this were true, Christians would indeed need to be concerned about e inequality because concern about poverty is a foundational principle of any Christian view of economics.

Fortunately, there is neither a necessary connection nor correlation. A country could have absolutely no poverty at all and have extremely e inequality. The reason is because e inequality (measured by the Gini coefficient), measures relative, not absolute, e.

There are many Christians, however, who mitted to alleviating poverty who think e inequality is a non-issue (see point #10). While a high level of e inequality might (in theory) tell us something about the level of poverty, it more often than not tells us nothing at all about the material condition of the poor.

7. No one in America is really concerned about absolute e inequality.

If your e is $50,000 a year, you are making twice the level of e of a family at the poverty threshold. If you were to redistribute $12,500 to the poor family, you would then achieve a level of e equality between the two families since you both would have $37,500. Why then don’t more middle-class earners ask the government to redistribute 25 percent of their annual e to the poor?

The reasons are numerous and varied, but they reveal that most people are not truly interested in reducing absolute e inequality – or even e inequality relative to themselves. What they want is for the e of earners who make more money than they do to be redistributed.

8. Discussions of e inequality are almost always about redistribution of e.

Redistribution of money from the vaguely defined rich to the poor has always been a standard feature of egalitarian-based politics. That has been particularly true in America from the mid-1940s to 2014. Until about 1975, though, it mon for political liberals to propose both the problem e inequality) and the solution e redistribution) together.

However, after 1975 we see a shift in the rhetoric. While talk about e inequality continued to increase, discussing the solution — e redistribution — was significantly downplayed. The likely reason for the shift, as we see in point #7, is that the idea of having the middle-class e redistributed to the poor is very unpopular. But if e inequality is a problem, what other possible solution remains?

As we’ve found on the issue of taxes, there are not enough “rich” people to take money from. So e inequality is really a stalking-horse for policies that money away from worker on the middle and upper ends of the economic spectrum and redistribute them to those on the bottom (or, more often than not, to the middle-man: the government).

9. The only real threat caused by e inequality are problems caused by envy

e inequality is increasingly described as a threat both to our country’s economic well-being and to democracy itself. But you rarely hear explanations for why exactly it’s perceived as a threat. The reason is because concerns about e inequality are primarily driven by envy. Envy is generated by positional concerns only when the individual’s current situation is below his or her own aspiration level. That is a fancy way of saying that the “threat” of e inequality derives from the fact that some people want what other people have.

Christians, of course, should recognize this is a problem that is rooted in the human heart and not the Gini coefficient. Even if we reduced the level of e inequality it would not reduce the level of envy for our neighbor’s wealth.

Here’s a thought experiment to prove the point. Imagine you are presented with two possible worlds. In world A, you earn $110,000 a year while colleagues earn $200,000. In alternative world B, you earn $100,000 a year but your colleagues earn only $85,000. Which would you choose?

World A seems to be the better option since, in absolute terms, you have more money to spend. But studies have shown that about 50% of people prefer world B. Relative position in a social group proved to be more important than absolute e.

As long as we think we deserve more, we will e envious of those who have what we want.

Since concerns about e inequality are generally motivated by envy, it’s not surprising that the group who are most envious of the “rich” are the “near rich.” For example, a study found that of the Occupy Wall Street protestors — a group obsessed with inequality — over a third had household es over $100,000. Said one of the authors of the study, Ruth Milkman, “It’s a pretty affluent demographic and highly educated. Many were the children of the elite, if you will.”

10. The focus on e inequality is at best, useless, and, at worst, immoral.

Because it is often rooted in personal envy or based on concerns about what will happen if envious people don’t get what they want, Christians should be very hesitant about legitimizing the issue of e inequality. Our primary economic concerns should be for the well-being of the poor and for the creation of conditions that lead to greater human flourishing for all our neighbors. Focusing on e inequality does neither. In fact, the focus on e inequality has e a distraction that has hampered our search for solutions to our true economic problems.

As with every aspect of economics – and indeed in all areas of life – it is not enough to support issues because they make us feel good about ourselves or acceptable in certain social circles. As followers of Christ we must champion economic policies and principles that are rooted in biblical virtues and beneficial to the flourishing of our fellow man. To do that we must refocus on what matters and stop ing distracted by envy-driven concerns that some people are earning more money than we are.

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
Rauschenbusch, Christianity and the Social Crisis
Readings in Social Ethics: Walter Rauschenbusch, Christianity and the Social Crisis.References below are to page numbers. This year marks the 100th anniversary of the first publication of Christianity and the Social Crisis, and a new centenary edition has been released this month by HarperSanFrancisco and includes responses to each chapter from figures such as Jim Wallis, Tony Camplo, Cornel West, Richard Rorty, Stanley Hauerwas, and others.R’s introduction to the American situation: “We have now arrived, and all the characteristic conditions...
Usury and Market Failure
When the sign for one of those payday lending stores went up on the corner a block away from my house, I have to say I was less than enthusiastic. The standard response in a market economy to “market failure” is for a nonprofit to fill the gap in services or meet the need. Today’s NYT reports on efforts in the short-term loan industry to meet that need. As it stands in the market system, “Payday loan stores, which barely...
Economics and the Evangelical Mind
Hunter Baker has a new column at named “Evangelical Minds,” and in it he examines issues of evangelical interest in academics and higher education. Today’s piece quotes me at some length on the question of evangelicals and economics, related to the firing of a professor at Colorado Christian University (scroll down to the final section titled, “Christian Economics?”). This piece is the third installment of the feature, and you can check out the first two here and here. ...
Global Warming Consensus Alert – There is Broad, Strong Agreement Based on Solid, Incontrovertible Science
Here’s your broad, strong agreement among scientists: In 2004, history professor Naomi Oreskes performed a survey of research papers on climate change. Examining peer-reviewed papers published on the ISI Web of Science database from 1993 to 2003, she found a majority supported the “consensus view,” defined as humans were having at least some effect on global climate change. Oreskes’ work has been repeatedly cited, but as some of its data is now nearly 15 years old, its conclusions are ing...
Socialism is the American Way in Krugman’s America
There are a number of problems with Paul Krugman’s NYT piece earlier this week, “A Socialist Plot.” pares the American educational system to its healthcare system, arguing that because Americans aren’t inclined to disparage the former as a socialist threat, we likewise shouldn’t consider universal healthcare as a “socialist plot.” “The truth is that there’s no difference in principle between saying that every American child is entitled to an education and saying that every American child is entitled to adequate...
Poverty Rate Drops First Time Since 2000
Fox News reports: The nation’s poverty rate dropped last year, the first significant decline since President Bush took office. The Census Bureau reported Tuesday that 36.5 million Americans, or 12.3 percent — were living in poverty last year. That’s down from 12.6 percent in 2005. The median household e was $48,200, a slight increase from the previous year. But the number of people without health insurance also increased, to 47 million. The last significant decline in the poverty rate came...
Outlawing Baggy and Saggy Pants Won’t Work
The City of Atlanta, and several other cities, have been debating whether or not to pass a law prohibiting saggy pants. Here’s the story from the Atlanta Journal-Constitution: Atlanta officials did not decide Tuesday whether they should e fashion police. However, they did agree to continue to debate whether the city should regulate whether folks can walk around Atlanta with saggy pants and exposed undies. Council members expect to create a 10- to 12-member task force soon to further the...
Job Licensing and ‘The Children’
Do you ever walk into a business and see a license on the wall and wonder if that specific industry really needs to be licensed by the state? I know I have thought that, if just a few times. John Fund of the Wall Street Journal looks at how licensing laws hinders low prices petition in the marketplace. In a piece titled, License to Kill Jobs, Fund also explains how over regulation has stymied job growth and the ability of...
Food, Animals, and the Flood
The relation of the creation account and the narrative of the flood in Genesis is plex one. One of these es in the similarities of the mandates set forth by God in both accounts. The sixteenth-century reformer Wolfgang Musculus identifies three mandates in the creation account (in addition to the specific prescription regarding the tree of life). The first of these is the procreation mandate: “Be fruitful and increase in number.” The second is the dominion mandate, flowing from the...
And I Still Haven’t Seen Dime One From Exxon…
It’s been at least a few months since I admitted abandoning all of my principles and ethics in favor of rolling around in great piles of filthy Exxon lucre, and I’ll be honest with you here – I haven’t even gotten so much as a thank you note from Rex Tillerson. Meanwhile, Al Gore appears to have offset his carbon emissions by planting a forest of magical money trees, and it’s HARVEST TIME, BABY! Not too long ago, a premier...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved