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Economic inequality cannot be explained by individual bad choices, study finds (phys.org)

submitted 1 year ago by [email protected] to c/[email protected]

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A global study led by a researcher at Columbia University Mailman School of Public Health and published in the journal Scientific Reports finds that economic inequality on a social level cannot be explained by bad choices among the poor nor by good decisions among the rich. Poor decisions were the same across all income groups, including for people who have overcome poverty.

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[–] [email protected] 4 points 1 year ago (16 children)

I have a friend that believes she is entitled to nice things, even though her income cannot accommodate it. She gets a new car every other year, wears name brand clothing, and 'upgraded' to a house that costs $120k more than her previous home. We earn similar income, I drive used cars, wear clothes from Target, am content with my 3 BR home, and have steadily invested in mutual funds. I will be able to retire at 60, she will work until the day she dies.. We've made different decisions, there will be different outcomes.

[–] [email protected] 5 points 1 year ago* (last edited 1 year ago) (13 children)

I get what you’re saying, but this is what they call anecdotal evidence. Plus, the article doesn’t claim that a person’s choices can not affect their financial outcome, it says that [edit: “biased decision-making”] alone do not account for the amount of income inequality prominent in the countries studied.

What you’re saying may be true, but if a terrible fate befell one of you, you would both have the assets to weather it. However, someone in the lower income bracket would not, no matter what choices they made, for reasons many times beyond their control.

[–] [email protected] 3 points 1 year ago (12 children)

Jerome and Tina attend ACME High School. Jerome spends his evenings studying for tests and completing homework assignments. Upon graduation, Jerome enrolls in college and eventually gets a degree in Mechanical Engineering. Shortly after leaving college, Jerome obtains employment as an engineer and is prudent with his financial decisions, positioning himself to enjoy a comfortable life.

Tina and Jerome made different decisions, there are different outcomes.

Anecdotal Evidence can certainly have value. Suppose I am sitting in a room with an empty box on the floor, and I notice a snake crawled into it. Then you enter the room and reach down to examine the contents of the box. I caution you that you may get bitten if you proceed....now, there hasn't been a scientific study completed on the box contents....so will you ignore my warning? I mean, it's anecdotal, after all..

[–] [email protected] 2 points 1 year ago (1 children)

Jerome and Tina attend ACME High School. Jerome spends his evenings studying for tests and completing homework assignments. A year before graduating, Jerome's parents die in an accident leaving Jerome to look after his 4 younger siblings with no income or no family. Shortly after the crash, Jerome has to stop going to college to be able to work in 3 different jobs to look after his siblings, Jerome can't obtain employment as an engineer because he was not able to finish college nor do any internship without financial support and since all the entry level jobs require at least 3 years of experience, his temporary jobs become permanent and he never finds time to finish his college. and he can't be prudent with his financial decisions since he never makes enough money to save or invest.

Tina spends her evenings smoking pot and hanging out downtown with her friends. She thinks being successful in school is for suckers, and chooses to live in the moment. Thanks to today's lax education standards, she 'graduates' with effectively no marketable skills. One day, Tina and her friends make a video for fun and become internet sensations. Tina continues to make videos for fun because she also thinks working is for suckers. Suddenly, marijuana becomes completely legal across all of United States for both recreation and medical use which causes a huge marijuana boom. One of the industry leaders in cannabis production makes a deal with Tina to become her sponsors, positioning Tina to enjoy a comfortable life.