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Thom Scott-Phillips's avatar

"..according to a study I just came across, voters have no idea how unequal their country is, whether inequality has been rising or falling, or where they are in the income distribution. It’s hard to see how rising inequality could shape political outcomes if nobody is aware of it. Am I missing something?"

Yes, I think you are missing things. I think inequality can easily affect politics without citizens having clear ideas about levels of inequality.

At a macro level, one way it can happen is for inequality to impact on asset prices (super rich people = high demand for assets with good returns). This can in turn make, for instance, house prices more expensive than people think they should be. That can be a political issue in and of itself, and can also trigger overt populism, if populists start blame immigrants etc for rising house prices.

At a micro level, people may not have any clear idea of levels of inequality but they can perceive, even if only tacitly, that some people have much, much more than they do. And they might quickly infer attitudes of snobbery etc even if those attitudes are not actually present. The perception that "they look down on us" can easily impact politics in turn.

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Persnickety Poore's avatar

Perhaps populism is caused by a combination of rising employment precarity, failure to achieve life goals your parents achieved much earlier in life, and perceived injustice. Favoring blacks, gays, immigrants etc. over poor hardworking citizens can be perceived as injustice and may have a higher weight than inequality.

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