Contrary to popular belief – making more money doesn’t necessarily mean you’ll be happier in life. The same can be said for societies as a whole, especially when it comes to countries with lopsided wealth distribution leading to high levels of inequality. So what are the connections between that inequality,people’s general wellbeing, and politics?

Keith Payne is a professor of psychology and neuroscience at UNC Chapel Hill. His books, Good Reasonable People: The Psychology Behind America's Dangerous Divide and The Broken Ladder: How Inequality Affects the Way We Think, Live, and Die explore the science behind inequality and the far-reaching impact it has on modern society.

Keith and Greg discuss how inequality affects subjective wellbeing and societal outcomes, the connection between inequality and political polarization, strategies to mitigate psychological harm of inequality, and how understanding these psychological mechanisms can improve cross-party dialogues and reduce divisiveness.

*unSILOed Podcast is produced by University FM.*

Episode Quotes:

Why facts don’t win arguments

51:42: Starting with the goal of understanding is important, and then when we're actually engaging with the other person, we have this tendency , as soon as they say something is true, we say, well, that's not true, and here are my facts and figures. And so we need to stop trying to bludgeon the other person into agreeing with us by citing facts and better evidence. That may sound counterintuitive, especially in the academic world where I live, because, but that's the currency, right, for argumentation. That's not where most people are coming from. I mean, they care about the facts, but only as tools to defend their social identities. And so, I think a better question to ask is, well, not why do you believe that in terms of why are you wrong about the facts, but what is believing that doing for your psychological bottom line? How is that serving your sense of identity and your group loyalties?

Status is more than your paycheck

12:50: We need to find ways to judge our status not purely in terms of wealth or income, and to make those richer kind of social connections, as a source of status. Because those are things we have more control over than how rich the 1% is.

What shapes our political beliefs

06:39: It is perceived inequality that makes a big difference. And you have to see the wealth around you. And usually, that's not comparing ourselves to the top one-tenth of 1%, because we don't see the billionaires. Even if you live in Manhattan and are surrounded by billionaires, you still don't see it much, right? People like that live in gated communities, surrounded by privacy-insuring mechanisms and stuff. What we see is maybe the top 20% who are driving expensive cars and showing off their vacation pictures on Facebook. So, for the psychological comparisons, you do have to have some visible inequality there. But there's other ways that extreme levels of inequality affect society through non-visible means. [07:34] When it comes to the day-to-day psychological experience of living in an unequal society, the blatant visibility or invisibility of wealth has a lot to do with it.

How inequality reshapes our behavior

37:07: We found that in high inequality countries, and in high inequality states within the United States, people are engaged in more risky financial behavior — whether that's buying lottery tickets, or not investing for retirement, going to check cashing places rather than traditional banking, et cetera. So that all happens more in high inequality places, and you can see the same sort of patterns with regard to non-financial risk taking around health, like drug use, cigarette smoking — things that are high risk but immediate reward in terms of hedonic or affective reactions — are better predicted by inequality than by poverty as well.

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064. Built for the Speed of Life | "The Yeti"