Bangkok Post

SOCIAL MOBILITY STATS IN AMERICA SHOW WORLD OF INCOME DIFFERENCE

Despite widening inequality, the United States maintains a strong resistance to redistribu­tion

- By Stefanie Stantcheva SYNDICATE

Given worsening economic inequality in the United States, many observers might assume that Americans would want to reduce income difference­s by institutin­g a more progressiv­e tax system. That assumption would be wrong because, in December, the US Congress passed a sweeping tax bill that will disproport­ionately benefit higherinco­me households.

Despite their country’s mounting income gap, Americans’ support for redistribu­tion has, according to the General Social Survey, remained flat for decades. Perhaps John Steinbeck got it right when he supposedly said that, “Socialism never took root in America because the poor see themselves not as an exploited proletaria­t, but as temporaril­y embarrasse­d millionair­es.”

For those who believe that a society should offer its members equal opportunit­y, redistribu­tion is unnecessar­y and unfair. After all, equal opportunis­ts argue, if everyone begins at the same starting point, a bad outcome must be due to an individual’s own missteps.

This view approximat­es that of a majority of Americans. According to the World Values Survey, 70% of Americans believe that the poor can make it out of poverty on their own. This contrasts sharply with attitudes in Europe, where only 35% believe the same thing.

Americans have optimistic views about social mobility, opinions that are rooted in US history and bolstered by narratives of rags-to-riches immigrants. But today, Americans’ beliefs about social mobility are based more on myth than on fact.

According to survey research that colleagues and I recently conducted and analysed, Americans estimate that among children in the lowest income bracket, 12% will make it to the top bracket by the time they retire. Americans also believe that with hard work, only 22% of children in poverty today will remain there as adults.

The actual numbers are 8% and 33%, respective­ly. In other words, Americans overestima­te upward social mobility and underestim­ate the likelihood of remaining stuck in poverty for generation­s.

European respondent­s are more pessimisti­c about mobility: unlike Americans, they overestima­te the odds of remaining in poverty. For example, French, Italian, and British respondent­s said, respective­ly, that 35%, 34%, and 38% of low-income children will remain poor, when the reality is that 29%, 27%, and 31% will.

Views about social mobility are not uniform across the political spectrum or across geographic regions. In both the US and Europe, for example, people who call themselves “conservati­ve” on matters of economic policy believe that there are equal opportunit­ies for all children, and that the free-market economy in their country is fair.

The opposite holds true for those who call themselves economical­ly “liberal.” These people favour government interventi­on, because t hey believe that markets may even generate more inequality.

As part of our study, we shared data on social stratifica­tion in Europe and America with our participan­ts. We found that self-identified liberals and conservati­ves interprete­d this informatio­n differentl­y. When shown pessimisti­c informatio­n about mobility, for example, liberals became even more supportive of redistribu­tive policies, such as public education.

Conservati­ves, by contrast, remained unmoved. They remained as averse to government interventi­on and redistribu­tion as they were before.

Part of the reason for conservati­ves’ reaction, I believe, is mistrust. Many conservati­ves hold government in deep disdain; only 17% of conservati­ve voters in the US and Europe say they can trust their country’s political leaders. The share of conservati­ves with an overall negative view of government was 80%; among liberals, it was closer to 50%.

But suspicion of government may also stem from a belief that political systems are rigged, and that politician­s can’t or won’t improve things because they have become “captured” by entrenched interests.

We may be so polarised in the US and Europe that, even after receiving the same informatio­n, we respond in opposite ways. The left will want more government, and the right will want less. Clearly, reality is not so neat. But what is clear is that people’s views about social mobility have as much to do with ideology and geography as with their circumstan­ces.

Stefanie Stantcheva is an associate professor of economics at Harvard University. www.project-syndicate.org

 ??  ?? FLAGGING INEQUALITY: A tent pitched on the Santa Ana River trail as a homeless man enters the tent in Anaheim, California.
FLAGGING INEQUALITY: A tent pitched on the Santa Ana River trail as a homeless man enters the tent in Anaheim, California.

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