Home
/
RELIGION & LIBERTY ONLINE
/
Income Inequality and Legal Plunder
Income Inequality and Legal Plunder
Jul 1, 2025 1:47 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
Lessons from the Puritans for a post-COVID world
As we think about how to rebuild from the COVID-19 pandemic and all of the social ills it revealed and exacerbated, the Puritans offer a model for cultural renewal. Read More… America is still slowly reopening and recovering from the COVID-19 pandemic, lockdowns, and restrictions. Over the past year, our nation’s divisions were amplified. Polarization reared its ugly head, manifesting deep-seated hostilities across and among families, churches, and political parties. In the wake of such conflict, one wonders: How can...
How fatherhood leads to flourishing
Changing the conversation about the value of settling down and pursuing a meaningful family can illuminate hard questions. Sacrificing one’s personal desires for a wife and children is a crucial step on the path to human flourishing. Read More… America reigns supreme in the number of single parent households. Every June, we gather with our friends and family to celebrate Father’s Day, yet one in four of children do not have a father. It’s a sobering statistic that deserves attention....
Train a child, secure the future: Educating our kids about the free market
Train up a child in the way he should go; even when he is old he will not depart from it. – Proverbs 22:6 Read More… Like most children, I had training wheels when I first learned to ride my bike. Before riding without them, I needed to learn a few key fundamentals – how to peddle, how to steer, how to coordinate my hands and feet. Once I mastered the basics, I was ready to go. In many ways,...
In celebrating American liberty, let’s not forget the role of religion
Religion is critical to a free society because it provides the moral and ethical structure to guide people to act as they ought in a state where the government allows them to act as they want. Read More… On July 4, 1776, the Continental Congress officially endorsed the Declaration of Independence. Parades, public readings, and bonfires ensued. These spontaneous celebrations developed into the Independence Day traditions that Americans still enjoy today. The United States has retained many of these festivities...
Society must balance the paradox of human nature
Ignoring either the inherent goodness or the fallenness of man leads us to either utopia or authoritarianism. If man is endowed with human dignity and also perfect, there is no need for laws. If man is corrupted and is not inherently valuable, then even the harshest laws have no downside. Read More… A debate is brewing over the thousands of inmates who were allowed to return home due to the health risks of the COVID-19 pandemic. They could soon be...
A country for old men: Why American communities need the elderly
For those in their twilight years, work has not reached its culmination, but its exaltation. munity life continues to decline, America needs the leadership of older generations. Read More… America is facing a crisis munity. The prevalence of social media is threatening human relationships. Religious detachment is leading to declining civic participation. Politicians and central planners are increasingly expanding their reach in munities. As the nation desperately searches for solutions to the problem, our leaders may be overlooking our nation’s...
How a Christian restauranteur navigated the pains of a pandemic
As “executive stewards,” Christian business owners are called to weigh market forces and seek a profit, but we are also tasked with stewarding much more. Read More… The pandemic-era lockdowns caused immeasurable pain to countless businesses, with restaurants experiencing disproportionate levels of pain and suffering. According to the National Restaurant Association, food-service industry sales “fell by $240 billion in 2020 from an expected level of $899 billion,” and by the end of 2020, “more than 110,000 eating and drinking places...
Government shouldn’t be the one leading our communities – we should
After a year of lockdowns, Americans have a unique opportunity to reclaim their freedom and promote a conservative ideal munity life and leadership. Read More… As our lives begin to crank back up after over a year of turmoil, we have to ask the question: es next for society? As usual, politicians have their own answer, eager to wade into new spheres during times of crisis. True to form, the federal government has already gleefully claimed the job of reorganizing...
Are billionaires evil?
Our attitudes about the ultra-rich largely depend on our views about wealth and how it’s created. By viewing the market through a lens of collaboration and growth, we can more clearly and accurately assess the contributions of the wealthy. Read More… Criticizing billionaires has e a popular cultural trend, based on anti-rich sentiment that was recently exacerbated by a ProPublica report that leaked the tax returns of the 25 wealthiest Americans. The report’s findings were interesting but not particularly surprising,...
The moral weight of taxation
Whether or not we view taxation as having moral downsides and bearing a moral weight has significant implications for the proper size of government and can make a world of difference in public policy decisions. Read More… As Congress works on a $6 trillion spending bill that would be funded by higher taxes and increasing the national debt, Americans should be asking themselves: When is taxation morally permissible? Taxation is justified only when the moral benefits of the programs these...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved