Social Networks Shape Economic Inequality Perceptions

Research suggests that the visibility of extreme wealth within a person’s social circle influences their support for economic redistribution. However, this influence often leads to political polarization and personal dissatisfaction.

A recent study published in PNAS Nexus used computational modeling and online experiments to investigate how network structures impact individual perceptions of inequality. The researchers found that individuals who associate with others sharing similar economic backgrounds struggle to perceive the true extent of economic disparity.

In segregated networks, poor participants underestimated the potential benefits of redistribution, while wealthy participants felt no pressure to share their wealth. Conversely, in networks where the wealthy were highly visible, poor participants voted for significantly higher tax rates and experienced intense polarization.

Interestingly, the study discovered that poor participants in segregated networks reported higher levels of satisfaction despite remaining the poorest in absolute terms. However, those in “rich visible” networks felt dissatisfied due to relative deprivation.

The study’s findings suggest that breaking down information silos can increase support for redistribution, but this approach risks exacerbating polarization and reducing the subjective well-being of disadvantaged individuals. Future research is needed to explore how these dynamics play out in cultures with different attitudes toward inequality.

Source: https://www.psypost.org/whom-you-observe-in-your-daily-life-alters-your-willingness-to-tax-the-rich