Americans favor more income equality

By Chrystia Freeland
November 30, 2010

Behavioral economist Dan Ariely of Duke University came into Reuters today to talk to Chrystia about his new book and some of his recent research on income inequality.

[yospace_video ratio="16:9"]13023957[/yospace_video]

Ariely, along with Michael Norton of Harvard Business School, conducted a survey to determine what level of inequality Americans tolerate if their incomes were randomly assigned, an equilibrium that philosopher John Rawls called the “just society.” The duo asked nearly 6,000 Americans to guess what percent of wealth they thought was owned by each of the five quintiles of income levels in the United States and what their ideal level of income distribution would be. Then, Ariely and Norton presented the respondents with three unlabeled charts showing–unbeknownst to them–the distribution of income in a perfectly equal society, the United States, and Sweden, respectively, and asked which society they would choose to live in.

The results were quite shocking:

First, respondents vastly underestimated the actual level of wealth inequality in the United States, believing that the wealthiest quintile held about 59% of the wealth when the actual number is closer to 84%. More interesting, respondents constructed ideal wealth distributions that were far more equitable than even their erroneously low estimates of the actual distribution, reporting a desire for the top quintile to own just 32% of the wealth

[...]

The (unlabeled) United States distribution was far less desirable than both the (unlabeled) Sweden distribution and the equal distribution, with some 92% of Americans preferring the Sweden distribution to the United States.

He summarized his research findings for Chrystia in the following way:

I think what politicians often do is cover things with layers of words that in many ways obscure the topics. ‘What about taxes?  And what’s your opinion about abortion and social mobility?’ But when you look deep down, it turns out Americans really believe in much more equality than we currently have. And this kind of gives me hope that as long as we can get a discourse to be more about the beliefs, we might get something better.

Posted by Peter Rudegeair.

No comments so far

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

[...] Re: why the poor and middle class need to pay more taxes Originally Posted by TurtleDude more idiocy we are talking about individuals and the top 1 percent of taxpayers make 22% of the income yet pay 40% of the income tax Please refute each point I made before calling it "more idiocy." Wealth inequality is real, please look here, heree and here [...]

[...] Americans long for more evenly shared prosperity, and a new wave of economic research suggests that more gain-sharing [...]

[...] Americans long for more evenly shared prosperity, and a new wave of economic research suggests that more gain-sharing [...]

[...] Americans long for more evenly shared prosperity, and a new wave of economic research suggests that more gain-sharing [...]

[...] Americans long for more evenly shared prosperity, and a new wave of economic research suggests that more gain-sharing [...]

[...] Americans long for more evenly shared prosperity, and a new wave of economic research suggests that more gain-sharing [...]