[Peace-discuss] Americans Vastly Underestimate Wealth Inequality, Support More Equal Distribution Of Wealth

[C. G. Estabrook]

       William Alden Alden at huffingtonpost.com
      Americans Vastly Underestimate Wealth Inequality, Support 'More Equal 
Distribution Of Wealth': Study
      First Posted: 09-23-10

Americans vastly underestimate the degree of wealth inequality in America, and 
we believe that the distribution should be far more equitable than it actually 
is, according to a new study.

Or, as the study's authors put it: "All demographic groups -- even those not 
usually associated with wealth redistribution such as Republicans and the 
wealthy -- desired a more equal distribution of wealth than the status quo."

The report (pdf) "Building a Better America -- One Wealth Quintile At A Time" by 
Dan Ariely of Duke University and Michael I. Norton of Harvard Business School 
(hat tip to Paul Kedrosky), shows that across ideological, economic and gender 
groups, Americans thought the richest 20 percent of our society controlled about 
59 percent of the wealth, while the real number was closer to 84 percent.

More interesting than that, the report says, is that the respondents (a randomly 
selected 5,522-person sample, reflecting the country's ideological, economic and 
gender demographics, surveyed in December 2005) believed the top 20 percent 
should own only 32 percent of the wealth. Respondents with incomes over $100,000 
per year had similar answers to those making less then $50,000. (The report has 
helpful, multi-colored charts.)

The respondents were presented with unlabeled pie charts representing the wealth 
distributions of the U.S., where the richest 20 percent controlled about 84 
percent of wealth, and Sweden, where the top 20 percent only controlled 36 
percent of wealth. Without knowing which country they were picking, 92 percent 
of respondents said they'd rather live in a country with Sweden's wealth 
distribution.

As the new Forbes billionaires list, released Wednesday, testifies, the richest 
Americans are getting richer, even as the country as a whole gets poorer. After 
2005 income inequality continued to balloon.

READ the study:

http://www.huffingtonpost.com/2010/09/23/americans-support-wealth-redistribution_n_736132.html