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Americans' Social Policy Preferences in the Era of Rising Inequality

Published online by Cambridge University Press:  19 August 2009

Leslie McCall
Affiliation:
Northwestern University. E-mail: l-mccall@northwestern.edu
Lane Kenworthy
Affiliation:
University of Arizona. E-mail: lane.kenworthy@arizona.edu
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Abstract

Rising income inequality has been a defining trend of the past generation, yet we know little about its impact on social policy formation. We evaluate two dominant views about public opinion on rising inequality: that Americans do not care much about inequality of outcomes, and that a rise in inequality will lead to an increase in demand for government redistribution. Using time series data on views about income inequality and social policy preferences in the 1980s and 1990s from the General Social Survey, we find little support for these views. Instead, Americans do tend to object to inequality and increasingly believe government should act to redress it, but not via traditional redistributive programs. We examine several alternative possibilities and provide a broad analytical framework for reinterpreting social policy preferences in the era of rising inequality. Our evidence suggests that Americans may be unsure or uninformed about how to address rising inequality and thus swayed by contemporaneous debates. However, we also find that Americans favor expanding education spending in response to their increasing concerns about inequality. This suggests that equal opportunity may be more germane than income redistribution to our understanding of the politics of inequality.

Information

Type
Research Article
Copyright
Copyright © American Political Science Association 2009
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Figure 1 Possible reactions to rising inequality

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Figure 2 Income inequalityNote: Vertical axis is truncated. Years for which data on attitudes toward inequality are available—1987, 1992, 1996, and 2000—are highlighted with the diamond markers. The unit is households. The income measure is posttransfer-pretax. The Gini coefficient ranges from zero to one, with larger numbers indicating greater inequality.Source: U.S. Census Bureau, www.census.gov/hhes/www/income/histinc/h04.html.

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Figure 3 Public opinion: Income differences in America are too largeNote: For data definitions, see appendix table A1.

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Figure 4 Distribution of inequality index by yearNote: For data definitions, see appendix tables A1 and A2. Predicted means and 95% confidence intervals in brackets are from pooled regression with control variables held constant across years.

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Figure 5 Public opinion: Government assistance to the poor and government spending on welfareNote: Probabilities are calculated from appendix table A3, panel I.D, Model 3 for the question on whether to spend more on assistance to the poor with all control variables held constant at their cross-year mean. Outcome categories include too little” spending, “about right” spending, and “too much” spending. Only probabilities for the “too little” spending category are shown here. The effect of the inequality index is not significantly different across years (i.e., the year-by-inequality index terms are not significant).

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Figure 6 Public opinion: Taxes for those with high incomesNote: Probabilities are calculated from the same model as in appendix table A3, panel II.A, Model 4 for the question on taxes on high incomes, except that the outcomes were collapsed from five to three to be consistent with other figures. Outcome categories include “much too low”/“too low”, “about right”, and “too high”/“much too high”. Only probabilities for the combined “much too low” and “too low” categories are shown here. All control variables are held constant at their cross-year mean. The effect of the inequality index is significantly lower in 1996 at p < .10 and higher in 1992 at p < .05.

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Figure 7 Public opinion: It is the responsibility of government to reduce differences in income between people with high incomes and those with low incomesNote: Probabilities are calculated from appendix table A4, panel A, Model 3 for the question on whether to redistribute income between high and low income groups with all control variables held constant at their cross-year mean. Outcome categories include five categories from “strong agreement” to “strong disagreement”. In this graph, strong agreement and agreement are combined. Only probabilities for total agreement are shown here. The effect of the inequality index is not significantly different across years (i.e., the year-by-inequality index term is not significant). This graph does not indicate differences across years in the mean value of the inequality index. When mean changes are taken into consideration (and all other variables are held constant at their means), the predicted probability of agreeing to this question is highest in 1996 (.335), followed by 2000 (.311), 1992 (.282), and 1987 (.236).

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Figure 8 Public opinion: Government spending on educationNote: Probabilities are calculated from appendix table A4, panel B, Model 4 for the question on whether to spend more on improving the nation's education system with all control variables held constant at their cross-year mean. Outcome categories include “too little” spending, “about right” spending, and “too much” spending. Only probabilities for the “too little” spending category are shown here. The effect of the inequality index is significantly greater in 1996 at p = .014.

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Table 1 Education spending “too little” by inequality attitudes index, predicted probabilities from ordered logistic regression model

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Figure 9 Public opinion: Government spending on healthNote: Probabilities are calculated from appendix table A4, panel E, Model 3 for the question on whether to spend more on health with all control variables held constant at their cross-year mean. Outcome categories include “too little” spending, “about right” spending, and “too much” spending. Only probabilities for the “too little” spending category are shown here. The effect of the inequality index is not significantly different across years (i.e., the year-by-inequality index terms are not significant).

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Figure 10 Public opinion: Government spending on social securityNote: Probabilities are calculated from appendix table A4, panel F, Model 3 for the question on whether to spend more on social security with all control variables held constant at their cross-year mean. Outcome categories include “too little” spending, “about right” spending, and “too much” spending. Only probabilities for the “too little” spending category are shown here. The effect of the inequality index is not significantly different across years (i.e., the year-by-inequality index terms are not significant).

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Figure 11 Public opinion: Should the minimum wage be increased?

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Table A1 Table A1: Questions in the GSS/ISSP on inequality and support for redistributive policies and government spending

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Table A2 Table A2: Descriptive statistics for three question index and all control variables

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Table A3 Table A3: Trends in support for transfers to poor and progressive taxation, ordered logistic regression coefficients

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Table A4 Table A4: Trends in support for social policies not targeted to the poor or rich, ordered logistic regression coefficients