A recent New York Times article points out that economic inequality in the U.S. is at its highest level since the 1930's. Yet, many Americans do not appear deeply concerned by this issue. Why? One theory is that Americans accept such inequality because they misperceive the actual level of economic mobility.
Two independent research teams recently determined that Americans across the economic spectrum severely misjudge the amount of societal upward mobility. Interestingly, overestimating upward mobility supports satisfaction among rich and poor alike. For those who consider themselves rich, perceptions of substantial economic mobility help to justify their wealth. For the poor, exaggerated perceptions of social mobility create hope for a brighter economic future.
A study led by Cornell psychologist Thomas Gilovich found that members of ethnic minority groups tend to overestimate upward mobility more than others. Some conclude that addressing the rising economic gap between rich and poor will therefore not only require us to deal with policy, but also with biases in our collective psychology.
