Indeed, many people are surprised the relationship with inequality is complicated. I don’t work on this, but my understanding it matters whether you see inequality in your society as a sign of unfairness and the system being broken (Europe) or you see it as a sign of opportunity to succeed (developing world). I’ve heard researchers say that don’t find such an affect of inequality in the US because really believe in the American Dream and thus don’t mind it. As I say, I’m no expert on this but I’d be keen for someone to look into it in more detail.
On your questions 1) the effect will be due to social comparison. Unclear if secret cash transfers would be possible—people buying new roofs for their houses—and whether this would then reduce the increase to the recipients if they can’t ‘show off’.
2) there is evidence on unemployment. In areas where unemployment is really high (20+%), individuals who are unemployed don’t show such a reduction in life satisfaction -there’s not such a social penalty if everyone else is unemployed.
I’m pretty sceptical on basic income. I would rather use that money—which would be huge—to provide mental health treatment to everyone who needed it. People are atrocious as converting money into happiness.
Indeed, many people are surprised the relationship with inequality is complicated. I don’t work on this, but my understanding it matters whether you see inequality in your society as a sign of unfairness and the system being broken (Europe) or you see it as a sign of opportunity to succeed (developing world). I’ve heard researchers say that don’t find such an affect of inequality in the US because really believe in the American Dream and thus don’t mind it. As I say, I’m no expert on this but I’d be keen for someone to look into it in more detail.
On your questions 1) the effect will be due to social comparison. Unclear if secret cash transfers would be possible—people buying new roofs for their houses—and whether this would then reduce the increase to the recipients if they can’t ‘show off’.
2) there is evidence on unemployment. In areas where unemployment is really high (20+%), individuals who are unemployed don’t show such a reduction in life satisfaction -there’s not such a social penalty if everyone else is unemployed.
I’m pretty sceptical on basic income. I would rather use that money—which would be huge—to provide mental health treatment to everyone who needed it. People are atrocious as converting money into happiness.