Mar 4, 2020

Faux Nobility

Eventually, Capitalism comes down to rich people spending less time doing the actual work, and more time concocting a reasonable-sounding rationalization for being self-centered rent-seeking assholes.



Veronika Tait, PhD - Psychology Today:

Republicans and Democrats explain wealth in different ways. In a survey by Pew Research Center, participants were asked why a person is rich. The majority of Republicans said a person is rich because they worked harder, whereas most Democrats said that it was because they had advantages in life. On why a person is poor, most Republicans attributed it to a lack of effort, whereas the overwhelming majority of Democrats said it was because of circumstances beyond control. So which is it?

Recent findings show that only half of today’s 30-year-olds earn more than their parents. However, 90% of children born in 1940 earned more than their parents. Rather than the ‘rags to riches’ fairytale so many of us want to believe in, opportunities vary widely depending on the occupations of one's parents. Researcher Michael Hout found that social mobility is far from the norm.

Some may argue that the current generation experiences lower ambition and greater entitlement compared to generations past. However, the data indicates that millennials earn 20% less than baby boomers did at the same stage of life, despite achieving higher levels of education. While business leaders work hard, it’s difficult to defend the jump in the ratio of pay between a company’s CEO and their average worker at 30:1 in 1978, skyrocketing to 299:1 in 2014.

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With ideals of meritocracy reinforced in American culture, it is tempting to assume that those who are wealthy have worked hard and fairly earned their affluence. But that wouldn’t tell the whole story. One study from 2017 found that 60% of wealth is inherited rather than worked for. There are also stories of executives exploiting workers, such as Jeff Bezos, who recently purchased the most expensive home in California and whose workers reported peeing in plastic bottles because they could not use the bathroom during their shift. 

Some advantages had by the successful are less visible. For example, I worked hard to receive academic scholarships and ultimately earned a Ph.D. in Social Psychology with no debt. However, it would be unfair for me to not also acknowledge my own privilege at play in my accomplishments. My parents never handed me a wad of cash, but they did raise me with clean water and sanitary living conditions, adequate nutrition, a stable environment, a strong support system, quality healthcare, and a lack of childhood trauma.

Evidence suggests that simply having wealth, whether earned or by luck, increases one’s justification for it. Also known as
the Just-World Fallacy, those who are on top of the social ladder, that is, those with money, power, and influence, believe the world is just. Those in the middle think the world is somewhat just, and those at the bottom believe the world is unjust.

Researcher Paul Piff cleverly demonstrated this by giving some participants a clear advantage in a game of Monopoly such as giving them extra money. When he asked participants why they (inevitably) won, they described how they had made smart decisions, and downplayed their privileged position.

Those who believe the world is just, that is, believe you get what you work for, are more likely to justify inequality and victim-blame. If those who are wealthy are automatically seen as good, it is assumed that the poor must have done something to deserve their misfortune.

Sarah Kendzior:"When wealth is passed off as merit, bad luck is seen as bad character. This is how ideologues justify punishing the sick and the poor. But poverty is neither a crime nor a character flaw. Stigmatize those who let people die, not those who struggle to live."
 

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