Read The Times Australia

Daily Bulletin

Distress, status wars and immoral behaviour: the psychological impacts of inequality

  • Written by: Nick Haslam, Professor of Psychology, University of Melbourne
image

It is well known that economic inequality is rising. In most industrialised nations the distribution of wealth and income is becoming increasingly concentrated. In the United States, the top 10% of earners make more than nine times as much on average as the remainder, and in Australia the ratio approaches five.

It is also well known that rising economic inequality is associated with a range of economic and social ills. More unequal societies tend to have worse health, more obesity, more violent crime, more political instability, and more institutional corruption.

Psychological effects

What is less well known is that economic inequality also has psychological effects. For example, there is evidence that people in more unequal societies tend to have lower levels of life satisfaction and higher rates of depression. These and other psychological effects on individuals may help to explain the larger scale social effects of inequality.

An important new review article makes a strong case for the explanatory role of two phenomena in particular. Nicholas Buttrick and Shigehiro Oishi argue economic inequality breeds mistrust and status competition. These have downstream effects on health and well-being in more unequal societies.

Mistrust

Buttrick and Oishi demonstrate that inequality is associated with a generalised distrust of other people. People who see large economic disparities tend to believe the economic system is unfair and others are advancing themselves by questionable means.

This lack of trust is amplified by high levels of class-based segregation in unequal societies, which reduces opportunities for people to interact outside their socioeconomic bubbles. The combination of distrust and unfamiliarity contributes to a lack of social cohesion and a sense that socioeconomic divides are deep and inevitable.

Mistrust undermines social connection and civility. Studies comparing US states find that residents of more unequal states are less likely to participate in social groups, a form of disengagement associated with poorer health outcomes according to Australian research. Wealthy residents of these states are also less likely to contribute to charity.

People in more unequal American states even show differences in their personality and willingness to engage in immoral behaviour. One study found they score relatively low on agreeableness – a trait that includes tendencies to be friendly and cooperative.

Another revealed that people from these states were more likely to conduct Google searches for academic cheating aids.

Diminished trust in economically unequal societies may have large social effects. Low generalised trust partially accounts for the relationship between inequality and mortality observed in a sample of 33 countries, which endures even when public health expenditures are statistically controlled. It also partially explains the link between inequality and homicide rates in those countries.

In short, a society where people do not trust one another is at risk of ill health and violent crime. Such societies tend to have relatively large economic disparities.

Status competition

According to Buttrick and Oishi, mistrust is only one of the psychological processes that account for inequality’s adverse social effects. The other is status competition. People in highly unequal societies are more concerned with where they stand on the status hierarchy.

Status anxiety may appear as fears of losing one’s economic standing or concerns about how others perceive it. That concern may manifest itself in consumerism. Residents of more unequal US states engage in more searches for high status consumption items, such as luxury brands.

This preoccupation with displaying high standing may even influence people’s sense of self. In a study led by my research group, people from more economically unequal countries were most likely to see themselves as above average on desirable characteristics. “Self-enhancement” of this sort is a key ingredient of narcissism.

Cause or effect?

Research on inequality paints a grim picture of its psychological implications. However, does the unequal distribution of income or wealth cause these implications? Perhaps inequality, mistrust, status anxiety, ill health and social disconnection are all merely symptoms of an underlying disease of the economic system.

This alternative account cannot be dismissed in full, but it is clearly not the whole story. Causal links between inequality and its supposed effects can be demonstrated by longitudinal and experimental research.

For example, a recent study tracked national income inequality and life satisfaction from 1984 to 2012 in a large representative survey of Germans. In years when inequality was relatively high, life satisfaction tended to be lower. This relationship was completely accounted for by higher levels of economic worry in more unequal years.

Experiments also demonstrate inequality can cause ill effects. In one study, participants engaged in a public goods game in which they could make mutually beneficial contributions to neighbours or free-ride on them. Subsequently they could decide whether to maintain or break their links to those neighbours.

Participants were randomly assigned to begin the game under conditions of equality, or medium or high inequality. The study found when inequality of wealth was visible, higher inequality had adverse consequences.

Under these conditions, richer participants were less likely to contribute to poorer ones and behaved in a self-interested way to retain their wealth. Overall cooperation among participants dropped, the network of social connections thinned out and opportunities for wealth creation were missed.

Findings such as these indicate economic inequality has very real psychological and social consequences. Understanding how inequality affects mind and behaviour will be crucial if we are to make adequate sense of its broader social effects.

Authors: Nick Haslam, Professor of Psychology, University of Melbourne

Read more http://theconversation.com/distress-status-wars-and-immoral-behaviour-the-psychological-impacts-of-inequality-75183

Business News

Is Your Brand Showing Up in AI Search? Most Melbourne Brands Aren't.

The New Front Door Nobody Told You About Something changed. Quietly. Without a press release. The way buyers find businesses in Australia has been rewired. Not replaced, rewired. Google isn't dead...

Daily Bulletin - avatar Daily Bulletin

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

Portable Toilet Hygiene Standards Explained: Clean vs Sanitised vs Disinfected

In portable toilet servicing, the words clean, sanitised, and disinfected often get used as if they mean the same thing. They don’t. And that difference matters because a unit can look tidy and still ...

Daily Bulletin - avatar Daily Bulletin

Options Available When a Company Faces Financial Distress

Financial distress can develop gradually or arrive suddenly, and when it does, the decisions made in the early stages often determine what options remain available later. Directors who act promptly ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...