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The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies
Published on: August 25, 2023
A choice mind-set increases the acceptance and maintenance of wealth inequality
Krishna Savani1, Aneeta Rattan
1Management Division, Columbia Business School, 3022 Broadway, Uris Hall 7L, New York, NY 10027, USA. ks2884@columbia.edu
Abstract:
Wealth inequality has significant psychological, physiological, societal, and economic costs. In six experiments, we investigated how seemingly innocuous, culturally pervasive ideas can help maintain and further wealth inequality. Specifically, we tested whether the concept of choice, which is deeply valued in American society, leads Americans to act in ways that perpetuate wealth inequality. Thinking in terms of choice, we argue, activates the belief that life outcomes stem from personal agency, not societal factors, and thereby leads people to justify wealth inequality. The results showed that highlighting the concept of choice makes people less disturbed by facts about existing wealth inequality in the United States, more likely to underestimate the role of societal factors in individuals' successes, less likely to support the redistribution of educational resources, and less likely to support raising taxes on the rich-even if doing so would help resolve a budget deficit crisis. These findings indicate that the culturally valued concept of choice contributes to the maintenance of wealth inequality.
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