Inequality Delusions
Via the FT, a new study compares perceptions of inequality across advanced nations. The big takeaway here is that Americans are more likely than Europeans to believe that they live in a middle-class society, even though income is really much less equally distributed here than in Europe. Ive truncated the table to show the comparison between the U.S. and France: the French think they live in a hierarchical pyramid when they are in reality mostly middle-class, Americans are the opposite.
As the paper says, other evidence also says that Americans vastly underestimate inequality in their own society and when asked to choose an ideal wealth distribution, say that they like Sweden.
Why the difference? American exceptionalism when it comes to income distribution our unique suspicion of and hostility to social insurance and anti-poverty programs is, I and many others would argue, very much tied to our racial history. This does not, however, explain in any direct way why we should misperceive real inequality: people could oppose aid to Those People while understanding how rich the rich are. There may, however, be an indirect effect, because the racial divide empowers right-wing groups of all kinds, which in turn issue a lot of propaganda dismissing and minimizing inequality.
Interesting stuff.
http://krugman.blogs.nytimes.com/2014/08/20/inequality-delusions/
Perhaps American delusions have changed with the campaign of Bernie.