What do New Zealanders think about inequality?

I’ve been reviewing the evidence on New Zealanders’ views about economic inequality. I’ll publish a full report in time, but for the moment, here are some initial conclusions.

·       Concern about inequality, belief that it has increased, and belief that it damages society are all at high (70-80%) levels (UMR, 2014). People want a much more equal wealth distribution

·       Certain policy proposals (higher taxes on the very rich, minimum wage rises) are popular. There is also a view, in some surveys, that high earners are significantly overpaid. People also feel the rich should be more grateful for the social support they receive. However, these proposals are “popular” only in an abstract sense. People say they want/are open to these things – but this support may decrease when other factors are introduced.

·       Belief that inequality overall should be tackled, however, can be muted by the ‘middle’ effect: everyone thinks they are average, and that “those in the middle” are having an especially hard time in New Zealand today. Tackling inequality would thus mean raising the undeserving poor above them. This sentiment – “I want more equality, but not if it harms me personally” – leads to political caution in addressing inequality. Louise Humpage’s work shows that while many people say they want a more equal distribution, they are often unsure or confused as to how this might be achieved (or whether it is possible).

·       Also muting the desire to tackle inequality is the familiar moral worldview that rich and poor deserve their station. In particular, people think the poor are lazy. This view would lead to a belief that even if inequality exists and is damaging, it may be inevitable.

·       Blame for child poverty is often put on bad parents (40%) (CPAG, 2014). Even the structural explanation (40%) is about jobs, etc – not government action directly.

·       People continue to believe that opportunities are open to all or most New Zealanders, even if they understand that life is tough for poor children. They also tend to think that inequalities resulting from skill, effort, etc, are more valuable than greater equality.

·       People’s views about government are mixed. Many surveys show falling or low support for the idea that it should tackle inequality, though that support has increased in recent years.

·       If people are sceptical that politicians are competent, or that policy mechanisms will be effective, this may reduce support for tackling inequality. A strong belief in market logic may be having the same effect. In Peter Skilling’s 2014 focus groups, even people who strongly supported a more equal distribution of earnings seemed persuaded by the argument that “it’s just not possible” because of the unchangeable laws of the market.

·       There is a strong view that people who are poor need to take more responsibility.

·       Related to this, the idea that inequality is a result of society being “unfair” has fallen to very low levels. This is in keeping with what social psychologists have termed “system justification theory”: the finding that people are loathe to accept that the (economic-political) systems that they live within are fundamentally unfair.

·       People do not feel they have much in common at all with the poor/beneficiaries.