In the wake of the financial crisis that began in 2007, as well as the subsequent recession, there has been a great deal of attention paid to income inequality. Specifically, there was a pervasive argument among many Americans that the discrepancies in income between the top and bottom are too large, and that the fruits of economic growth are predominantly going to the highest earners (the so-called “one percent”).
Among those who believe that income inequality is too high, the solutions might include policies such as more progressive taxation, stronger regulation, and more generous policies to help lower income families. That is, they might generally support some increased role for government in addressing this issue. Insofar as individuals’ attitudes tend to respond to changes in their own circumstances (e.g., Owens and Pedulla 2013), as well as to overall economic conditions, one would possibly expect an increase in support for government efforts to reduce inequality during and after the financial crisis.
We might take a look at this proposition using a General Social Survey (GSS) question asking respondents to characterize their support (on a scale of 1-7) for the statement that the government should reduce income differences between the rich and poor. The graph below presents the average value of this scale between 1986 and 2014. Note that higher values in the graph represent greater support for government action.