Failure to Respond to Rising Income Inequality: Processes That Legitimize Growing Disparities

Abstract

Why is there not more public outcry in the face of rising income inequality? Although public choice models predict that rising inequality will spur public demand for redistribution, evidence often fails to support this view. We explain this lack of outcry by considering social-psychological processes contextualized within the spatial, institutional, and political context that combine to dampen dissent. We contend that rising inequality can activate the very psychological processes that stifle outcry, causing people to be blind to the true extent of inequality, to legitimize rising disparities, and to reject redistribution as an effective solution. As a result, these psychological processes reproduce and exacerbate inequality and legitimize the institutions that produce it. Finally, we explore ways to disrupt the processes perpetuating this cycle.