Inequality, Information, and Political Responsiveness
P14-5
Presented by: Mads Andreas Elkjær
Rising economic inequality has raised concerns that affluence may beget political influence and led to an emerging literature that argues that rich people exert an outsized influence on public policies. Yet because affluence correlates with education and political information, it is hard to ascertain whether the observed differentials in political responsiveness reflect inequalities in substantive political representation or merely disparities in political information among income groups. In this paper, I provide the first estimates of differential political responsiveness, net of the effect of informational disparities. I do so by combining data on public support for social spending with data on actual social spending from 20 advanced democracies between 1985 and 2019. In line with most previous research, I find that the evolution of social spending since the 1980s better reflect the preferences of more affluent groups, but the differentials in political responsiveness are entirely explained by informational disparities: once informational disparities are accounted for, political responsiveness is strikingly equal. These results suggest that, by not accounting for differences in information among income groups, previous research exaggerate inequalities in political voice, and challenge the dominating narrative that 'rich people rule'.