Perception of Wealth Inequality in the United States

Perception of Wealth Inequality in the United States Sociology Chapter 11: Social Class in the United States Society: The Basics Chapter 8: Social Stratification

How much inequality do people think exists in the U. S. ? 20 Fourth. Poorest 20 percent Third 20 3% 6% percent 12% Richest 20 percent 59% Second 20 percent 20% Perceived Wealth Distribution The estimates of wealth distribution were consistent regardless of gender, income level, or political party identification.

How much inequality do people think should exist in the U. S. ? Fourth 20 percent, 15% Poorest 20 percent, 7% Richest 20 percent, 36% Third 20 percent, 20% All categories, including the wealthiest, desired a more equal distribution of wealth than what they estimated the current United States level to be, and all categories also desired some inequality, even the poorest respondents. -- Norton & Ariely, 2011 Second 20 percent, Ideal Wealth Distribution 22%

How much inequality actually exists in the U. S. ? Fourth 20 Second 20 Third 20 percentpercent 2. 6% 0. 5% 9. 4% Richest 20 Poorest 20 percent 88. 9% -1. 4% Actual Wealth Distribution In reality, the bottom 20% of U. S. families are in debt and the bottom 80% have barely ten cents of every dollar of wealth in the U. S.

How do these compare? Third 20 percent 12% 20 Fourth Poorest 20 percent 3% 6% Fourth 20 percent 15% Richest 20 percent 59% Poorest 20 percent 7% Third 20 percent 20% Richest 20 percent 36% Second 20 percent 20% Perceived Wealth Distribution Second 20 percent 9. 4% Third 20 Fourth 20 percent 2. 6% 0. 5% Richest 20 Poorest 20 percent 88. 9% -1. 4% Actual Wealth Distribution Ideal Second 20 Wealthpercent Distribution 22%

How do these compare? Poorest 20 percent Actual Middle 60 percent Richest 20 percent 12. 5% 88. 9% -1. 4% Perceived 3% Ideal 7% -50% 38% 59% 57% 0% 36% 50% Percentage of All Wealth 100%

Discussion Questions What distribution of wealth do you find fair? What share of wealth would you give to each quintile of families? What policies would you support to reduce economic inequality? Would you focus on “growing the economy” so average people have more economic opportunity (as Republicans tend to do) or taxing the rich and increasing government funded programs to assist lower-income people (as Democrats tend to do)? Why?