Wednesday, April 1st, 2015
Stephan: Part of our social stability, I think, depends on the ignorance most people share about the true measure of economic inequality in the U.S. A definition of the one per cent:
"they have median annual household income of $750,000, median assets of $7.5 million, and there are 1.2 million of them across the country."
That's a lot of money, but at that level you are still living in a universe that can be recognized by the 99 per cent. When you get above that by perhaps three times you to move into another realm.
And when you are a hundred times that, as are the uber-rich, you may occupy tangential geography, but you live in another world. Why wouldn't you want to avoid all the unpleasant inconvenience of modern air travel for instance if you could move through the world more effortlessly than the 99 per cent move through neighborhoods. It changes the scale of your thought, but it also blurs perception of what life is really like for most people.
According to Pew Research, most Americans believe the economic system unfairly favors the wealthy, but 60% believe that most people can make it if they’re willing to work hard.
Credit: Allan Danahar via Thinkstock
In a candid conversation with Frank Rich last fall, Chris Rock said, “Oh, people don’t even know. If poor people knew how rich rich people are, there would be riots in the streets.” The findings of three studies, published over the last several years in Perspectives on Psychological Science, suggest that Rock is right. We have no idea how unequal our society has become.
In their 2011 paper, Michael Norton and Dan Ariely analyzed beliefs about wealth inequality. They asked more than 5,000 Americans to guess the percentage of wealth (i.e., savings, property, stocks, etc., minus debts) owned by each fifth […]