SoylentNews is people
SoylentNews
Income inequality in America has been growing rapidly, and is expected to increase [PDF]. While the widening wealth gap is a hot topic in the media and on the campaign trail, there's quite a disconnect between the perceptions of economists and those of the general public.
For instance, surveys show people tend to underestimate the income disparity between the top and bottom 20% of Americans, and overestimate the opportunity for poor individuals to climb the social ladder. Additionally, a majority of adults believe that corporations conduct business fairly despite evidence to the contrary and that the government should not act to reduce income inequality.
Even though inequality is increasing, Americans seem to believe that our social and economic systems work exactly as they should. This perspective has intrigued social scientists for decades. My colleague Andrei Cimpian and I have demonstrated in our recent research that these beliefs that our society is fair and just may take root in the first years of life, stemming from our fundamental desire to explain the world around us.
http://theconversation.com/lifes-not-fair-so-why-do-we-assume-it-is-45981
(Score: 2) by TheRaven on Friday September 11 2015, @09:29AM
sudo mod me up
(Score: 2, Insightful) by termigator on Friday September 11 2015, @02:20PM
Many people are lousy managing their money. Combine that with humans being social animals, with most concerned about their social status, many will live beyond their means to gain social status.
I find it amusing that those lower on the ladder are expected to be more disciplined and responsible than those higher up. It easy for higher-ups to tout financial discipline when they do not have the same financial and social pressures as those on the lower end of the income ladder.
As for savings, the system is rigged that basic savings actually loses value over time. Therefore, folks have to put money in investment products, like 401k and IRAs, which allows the wealthy to get their cut of folks money via fees and transaction costs.