Americans actually live in Russia, although they think they live in Sweden. And they would like to live on a kibbutz. This isn’t the set-up for some sort of politically incorrect Catskills stand-up joke circa 1960. It is the takeaway from a remarkable study by Michael Norton and Dan Ariely on how Americans think about income inequality.

The right likes to argue that income inequality as an issue doesn’t win elections because Americans don’t begrudge the rich so much as they want to join them. The Norton and Ariely study suggests otherwise. Given a choice, the authors find, Americans would prefer to live in a society more equal than even highly egalitarian Sweden.

Another popular view is that income inequality isn’t experienced as acutely by most Americans as the numbers suggest because of how much can be “consumed” by the lower rungs of the nation’s socioeconomic ladder. No less a figure than Alan Greenspan, the maestro himself, once made this case at the Federal Reserve’s annual Jackson Hole conference, presenting data on the consumption of dishwashers, microwaves and clothes dryers showing that if measured by the possession of these goods – as opposed to the huge and growing income divide — inequality was decreasing.
[…]
Americans are mistaken about income inequality because of national self-confidence and the lottery effect.




  1. nilum says:

    And if we measured income inequality based on healthcare, education, local infrastructure, and local crime rates…

    Howabout if we measure income inequality based on shoe size or average height. It makes about just as much sense.

  2. msbpodcast says:

    Americans are people who never listen to the lyrics of the song they are listening to beyond the bridge.

    How else can we explain the jingoistic knee-jerk responses to songs like “Bruce Springstein‘s “Born in the USA“, a song which is a scathing inditement of being an American?

    99% of the population couldn’t give you the lyrics apart from the catchy title of the song because they never actually hear anything else.

    Same thing goes for “Claude “Curly” Putman Jr.‘s “Green, Green Grass of Home“. I got that crap pulled from Armed Forces Radio in Germany.

    Do you really want you troops singing about their own demise? “as they lay me neath the green, green grass of home. indeed.

  3. msbpodcast says:

    The lack of understanding and the general confusion between economic systems and political systems by Americans reflects a naiveté, a lack of sophistication and an eminently exploitable disposition which makes them prey to every con-man, shill and huckster out there.

    There is such a vast gulf between the reality of the distribution of wealth and the fragile fiction that the average American must live out that I can only ascribe it to a kind of mental illness.

    This is induced, perpetrated and perpetuated by the 60 or so families who own 80%+ of everything, leaving the other 99.9% of us to scramble for the other <20%.

    The mantra that the United States is a democracy flies in the face of the evidence of the senses.

    The United States is a fascist oligarchy.

    Its always been a fascist oligarchy overlaid with a veneer of democracy, but as the election of 2001 showed you, its not a democracy, it is a republic founded by and for an small group of oligarchs.

    Furthermore the costs of holding an election should clue you in to the fact that its a fascist enterprise.

  4. The_Tick says:

    @ #3, Seems like a song about some whiny prick crying about being executed, would be a military favorite. Good thing all those enlisted sissies had you there to save them from those awful words. As for the article, the whole issue regarding the economic devide can be…. Hey look, a shiny thing!!!!

  5. msbpodcast says:

    In #1, nilum proved my point about the naiveté and general ignorance as regards political and economic systems of the typical American citizen.

    As Chris Rock would say: Dumb … real dumb.

    If anyone uses words of more than two syllables when addressing him. he throws his hands up in exasperation and learn nothing.

  6. msbpodcast says:

    In #4, The_Tick said: As for the article, the whole issue regarding the economic devide can be…. Hey look, a shiny thing!!!!.

    I rest my case.

    Make sure to buy the lube they sell you at highly inflated prices when they fuck you up the ass, otherwise you might bleed into your shorts.

  7. TheTick says:

    @ #6, Not surprising that you use any excuse to move the conversation to man on man anal, must be army. But, it’s sad you automatically assume the position of catcher in your hypothesis. The military has made you strong indeed.

  8. Wrigsted, the Dane says:

    Sweden are gay….

  9. MikeN says:

    >Americans would prefer to live in a society more equal than even highly egalitarian Sweden.

    Not surprising at all. The idiocy is the rest of the article, which just assumes the author is right, and tries to figure out why the rest of the country is wrong.

  10. hhopper says:

    The story was boring, but the photo was excellent.

  11. atlassheepdog says:

    msbpodcast – Message ; If you live your life in a rant over what others have and want to force compliance to your wishes alone you expose your simpleminded jealous fantasy and you will live a truly empty existence. The rich and poor cross economic quintiles throughout their lives and most of the super rich are at the top only a short while. Fascist Oligarchy my arse. Go get your own, you tool….

  12. TooManyPuppies says:

    “dishwashers, microwaves and clothes dryers”

    I don’t “consume” or own any of these. They’re included with my apartment, so is central heating and AC.

  13. patrick_wilson says:

    yes, but nobody in their right mind would entrust our government to institute policies intended to achieve this result

  14. nilum says:

    msbpodcast, I’m not sure what you’re problem is with my critique on the Greenspan quote, but you obviously just like being antagonistic about things.

    I didn’t say I was disagreeing with the article, but I was disagreeing with Greenspan’s take on income inequality. This should have been obvious since I did not deviate from that particular point.

    Who is ignorant again?

  15. Fotie Nein Sense says:

    Yo! ‘Merica! We be SMART, dawg!


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