How equal do we want the world to be? You'd be surprised | Dan Ariely

Summary

This talk explores the subjective nature of our perceptions, using the analogy of beer tasting to illustrate how our preconceived notions can skew our understanding of inequality. The speaker discusses large-scale surveys that reveal a significant gap between the public's perception of wealth distribution and the reality, as well as their desired levels of inequality. By applying philosopher John Rawls' 'veil of ignorance' concept, the speaker demonstrates a desire for a more equitable society, suggesting that addressing the knowledge and desirability gaps is crucial for effecting change. The talk concludes with a call to consider the implications of inequality in various aspects of life and the importance of acting on these insights.

Takeaways

• 👓 The concept of 'color-tinted glasses' is used to illustrate how our preconceived notions and expectations can bias our perceptions and decisions.
• 🍺 A blind taste test with beer shows that without branding or appearance, most people cannot distinguish between different beers, highlighting the impact of external factors on our sensory judgments.
• 💊 The placebo effect is demonstrated through a study where people reported more pain relief from expensive pain medication, showing that expectations can influence physiological responses.
• 🏈 Sports fans' bias is used as an example of how our allegiances can skew our view of events, such as games, based on our team preferences.
• 📊 Large-scale surveys reveal a significant gap between the public's perception of wealth distribution and the actual reality, indicating a lack of awareness about economic inequality.
• 🤔 The idea of a 'veil of ignorance' from philosopher John Rawls is introduced as a thought experiment to consider what kind of society one would want to join without knowing one's position in it, aiming for a more objective view on inequality.
• 🌍 Surveys across different demographics, including liberals, conservatives, rich, poor, and various nationalities, show a consensus on the desired level of wealth distribution, suggesting common values regarding equality.
• 👶 There is a particular aversion to inequality in areas affecting those with less agency, such as children and infants, indicating a societal preference for fairness in opportunities and basic needs.
• 🔍 The script identifies three gaps in society's approach to inequality: a knowledge gap about the current state of inequality, a desirability gap between what is considered just and the current state, and an action gap in translating awareness into change.
• 🍻 The speaker concludes by encouraging the audience to reflect on their experiences and decisions, both in everyday life and in broader policy issues, to consider the role of expectations and the reality behind them.

Q & A

What is the metaphor of 'color-tinted glasses' used in the script to represent?

The 'color-tinted glasses' metaphor is used to represent the preconceived notions and biases that influence our perception and judgment of situations, preventing us from being objective.

How does the beer tasting experiment illustrate the impact of expectations on perception?

In the beer tasting experiment, when participants taste beers without knowing their brands, most beers are perceived similarly, showing that without preconceived notions, our ability to distinguish between them is diminished, except for distinctive ones like Guinness.

What is the role of expectations in the effectiveness of pain medications as mentioned in the script?

The script explains that when people are told they are receiving expensive pain medication, they experience more pain relief than those told it is cheap, indicating that expectations can influence the physiological response to medication.

How does the script use sports fandom as an example of subjective perception?

The script uses sports fandom to illustrate how our allegiance to a team affects how we perceive and interpret the game, showing that our preconceived notions can color our view of events.

What did the large-scale surveys conducted in the U.S. and other countries aim to discover?

The surveys aimed to discover whether people are aware of the current levels of inequality and what levels of inequality they would prefer to have.

What is the 'veil of ignorance' concept introduced by philosopher John Rawls, as discussed in the script?

The 'veil of ignorance' is a concept by John Rawls where one would design a just society without knowing their own position in it, ensuring fairness as all aspects are considered impartially.

How do the results of the 'veil of ignorance' experiment differ from the actual wealth distribution in the U.S.?

In the 'veil of ignorance' experiment, participants wanted a more equal distribution of wealth, with the bottom 20 percent receiving about 10 percent of the wealth, whereas in reality, they have only 0.1 percent.

What is the significance of the knowledge gap and desirability gap mentioned in the script?

The knowledge gap refers to the difference between what people think exists and the reality, while the desirability gap is the difference between what is considered ideal and what currently exists. These gaps highlight the need for education and a change in societal preferences regarding inequality.

How does the script suggest addressing the gaps in knowledge and desirability regarding inequality?

The script suggests addressing the knowledge gap through education about inequality and its consequences, while the desirability gap might be tackled by considering the 'veil of ignorance' approach to encourage more equitable societal preferences.

What is the implication of the script's discussion on inequality in health and education?

The script implies that people are not only averse to wealth inequality but also to the inequality in health and education that results from wealth disparities, indicating a broader concern for social equity.

Outlines

00:00

🍺 Perception and Reality of Inequality

The speaker begins by discussing the subjective nature of human perception, using the example of tasting beer to illustrate how our preconceived notions can affect our judgments. They then transition into the topic of inequality, questioning how well people understand the current levels of wealth distribution and what they would ideally prefer. Through large-scale surveys, it's revealed that there's a significant disparity between what people believe about wealth distribution and the actual statistics. The speaker highlights the stark contrast between the perceived 58% wealth share of the richest 20% and the actual 84-85%. This discrepancy underscores the importance of challenging our assumptions and understanding the reality of social and economic conditions.

05:04

🌐 Bridging the Gaps in Wealth and Perception

In the second paragraph, the speaker delves into the concept of a just society as proposed by philosopher John Rawls, emphasizing the idea of a 'veil of ignorance' where decisions are made without personal bias. Using this framework, the speaker presents findings from surveys that asked participants to allocate wealth under these conditions, revealing a preference for a more equitable distribution than currently exists. The discussion expands to include not only wealth but also other areas such as health, education, and life expectancy, where inequality is similarly unwelcome. The speaker identifies three key gaps: knowledge, desirability, and action, and suggests that focusing on the most vulnerable—children and infants—might be a catalyst for change. The talk concludes with a call to reflect on personal experiences and expectations, and to consider their broader implications for policy and societal decisions.

Keywords

💡Objective

Objective refers to a state of being unbiased or based on facts, rather than personal feelings or opinions. In the video, the speaker discusses the importance of being objective in life to accurately perceive situations. The concept is illustrated through the example of beer tasting, where a blind taste test removes personal bias and allows for a more objective evaluation of the beers.

💡Color-tinted glasses

This metaphorical term refers to the preconceived notions or biases that people have, which can distort their perception of reality. The speaker uses this term to describe how people's expectations and beliefs can affect their interpretation of the world around them, leading to subjective rather than objective views.

💡Blind taste

A blind taste is a method of evaluating something, such as food or drink, without any prior knowledge of its identity. This concept is used in the video to demonstrate how removing external influences can lead to more objective judgments. The speaker suggests that a 'blind taste' approach could be applied to evaluating inequality to achieve a more objective understanding.

💡Inequality

Inequality refers to the unequal distribution of resources, opportunities, or privileges among a population. The video discusses the concept of inequality in terms of wealth distribution, and how people's perceptions of inequality differ from the actual reality. It also explores the gap between what people believe is just in terms of inequality and the current state of inequality.

💡Expectations

Expectations are beliefs about what will happen or what is typically the case. The speaker explains how expectations can influence people's experiences, such as the perceived effectiveness of pain medication. This concept is used to show how subjective expectations can alter perceptions and outcomes.

💡Physiology

Physiology is the study of the functions and mechanisms which work together to keep the body alive. In the context of the video, the speaker discusses how people's expectations can actually change their physiology, such as in the case of the placebo effect with pain medications.

💡Social Justice

Social justice refers to the fair and just relations between the individual and society. This concept is integral to the video's discussion on inequality. The speaker explores how people's understanding and desires regarding social justice may differ from the current state of affairs and how this gap can be addressed.

💡Wealth Distribution

Wealth distribution is the way in which wealth is divided among the members of a society. The video uses the example of wealth distribution to illustrate the discrepancies between what people think the distribution is and the actual distribution. It also discusses what people believe the ideal distribution should be.

💡John Rawls

John Rawls was a philosopher who is mentioned in the video for his concept of a just society. Rawls proposed that a just society is one that individuals would choose to be a part of if they were unaware of their own position within it, a concept referred to as the 'veil of ignorance.' This idea is used to explore how people might think about inequality differently if they were considering it from an impartial perspective.

💡Veil of Ignorance

The 'veil of ignorance' is a hypothetical scenario proposed by John Rawls where individuals make decisions about how society should be structured without knowing their own position in that society. The video uses this concept to explore how people's views on inequality might change if they were considering it from an impartial standpoint.

💡Knowledge Gap

A knowledge gap refers to the difference between what people know and what they need to know to make informed decisions. In the video, the speaker discusses the knowledge gap regarding inequality, highlighting the discrepancy between people's perceptions of inequality and the actual facts.

💡Desirability Gap

The desirability gap is the difference between what is considered desirable or ideal and what currently exists. The video discusses this gap in the context of inequality, noting that there is a significant difference between the level of inequality people believe is right and the level of inequality that exists in reality.

Highlights

The concept of objectivity in life is challenged by our inherent biases.

Blind taste tests can reveal our inability to objectively judge things like beer.

Expectations can alter our physiology, as seen in the effectiveness of expensive vs. cheap pain medication.

Preconceived notions and expectations can significantly color our view of the world.

Large-scale surveys were conducted to understand perceptions of wealth inequality.

There is a significant discrepancy between perceived and actual wealth distribution.

The bottom 20% of the U.S. population actually holds only 0.1% of the wealth.

People's desired wealth distribution is more equal than the current reality.

John Rawls' 'veil of ignorance' concept was used to explore ideal societal structures.

Under the 'veil of ignorance', people倾向于 a more equal distribution of wealth.

There is a knowledge gap between current wealth distribution and what people believe it to be.

Desirability gap exists between what people think is right and the current state of inequality.

Inequality in health and education, which are outcomes of wealth, are particularly concerning.

People are more accepting of changes in equality for those with less agency, like children.

The importance of addressing the knowledge gap through education on inequality.

The desirability gap suggests a need for rethinking what we truly want in society.

The 'veil of ignorance' approach can help remove selfish motivations from decision-making.

An action gap exists between recognizing inequality and taking steps to address it.

Focusing on those with less agency, like young children, may be a key to addressing inequality.

The talk concludes with a call to reflect on personal experiences and their implications for policy decisions.

Transcripts

It would be nice to be objective in life,

in many ways.

The problem is that we have these color-tinted glasses

as we look at all kinds of situations.

For example, think about something as simple as beer.

If I gave you a few beers to taste

and I asked you to rate them on intensity and bitterness,

different beers would occupy different space.

But what if we tried to be objective about it?

In the case of beer, it would be very simple.

What if we did a blind taste?

Well, if we did the same thing, you tasted the same beer,

now in the blind taste, things would look slightly different.

Most of the beers will go into one place.

You will basically not be able to distinguish them,

and the exception, of course, will be Guinness.

(Laughter)

Similarly, we can think about physiology.

What happens when people expect something from their physiology?

For example, we sold people pain medications.

Some people, we told them the medications were expensive.

Some people, we told them it was cheap.

And the expensive pain medication worked better.

It relieved more pain from people,

because expectations do change our physiology.

And of course, we all know that in sports,

if you are a fan of a particular team,

you can't help but see the game

develop from the perspective of your team.

So all of those are cases in which our preconceived notions

and our expectations color our world.

But what happened in more important questions?

What happened with questions that had to do with social justice?

So we wanted to think about what is the blind tasting version

for thinking about inequality?

So we started looking at inequality,

and we did some large-scale surveys

around the U.S. and other countries.

So we asked two questions:

Do people know what kind of level of inequality we have?

And then, what level of inequality do we want to have?

So let's think about the first question.

Imagine I took all the people in the U.S.

and I sorted them from the poorest on the right

to the richest on the left,

and then I divided them into five buckets:

the poorest 20 percent, the next 20 percent,

the next, the next, and the richest 20 percent.

And then I asked you to tell me how much wealth do you think

is concentrated in each of those buckets.

So to make it simpler, imagine I ask you to tell me,

how much wealth do you think is concentrated

in the bottom two buckets,

the bottom 40 percent?

Take a second. Think about it and have a number.

Usually we don't think.

Think for a second, have a real number in your mind.

You have it?

Okay, here's what lots of Americans tell us.

They think that the bottom 20 percent

has about 2.9 percent of the wealth,

the next group has 6.4,

so together it's slightly more than nine.

The next group, they say, has 12 percent,

20 percent,

and the richest 20 percent, people think has 58 percent of the wealth.

You can see how this relates to what you thought.

Now, what's reality?

Reality is slightly different.

The bottom 20 percent has 0.1 percent of the wealth.

The next 20 percent has 0.2 percent of the wealth.

Together, it's 0.3.

The next group has 3.9,

11.3,

and the richest group has 84-85 percent of the wealth.

So what we actually have and what we think we have

are very different.

What about what we want?

How do we even figure this out?

So to look at this,

to look at what we really want,

we thought about the philosopher John Rawls.

If you remember John Rawls,

he had this notion of what's a just society.

He said a just society

is a society that if you knew everything about it,

you would be willing to enter it in a random place.

And it's a beautiful definition,

because if you're wealthy, you might want the wealthy

to have more money, the poor to have less.

If you're poor, you might want more equality.

But if you're going to go into that society

in every possible situation, and you don't know,

you have to consider all the aspects.

It's a little bit like blind tasting in which you don't know

what the outcome will be when you make a decision,

and Rawls called this the "veil of ignorance."

So, we took another group, a large group of Americans,

and we asked them the question in the veil of ignorance.

What are the characteristics of a country that would make you want to join it,

knowing that you could end randomly at any place?

And here is what we got.

What did people want to give to the first group,

the bottom 20 percent?

They wanted to give them about 10 percent of the wealth.

The next group, 14 percent of the wealth,

21, 22 and 32.

Now, nobody in our sample wanted full equality.

Nobody thought that socialism is a fantastic idea in our sample.

But what does it mean?

It means that we have this knowledge gap

between what we have and what we think we have,

but we have at least as big a gap between what we think is right

to what we think we have.

Now, we can ask these questions, by the way, not just about wealth.

We can ask it about other things as well.

So for example, we asked people from different parts of the world

about this question,

people who are liberals and conservatives,

and they gave us basically the same answer.

We asked rich and poor, they gave us the same answer,

men and women,

NPR listeners and Forbes readers.

We asked people in England, Australia, the U.S. --

very similar answers.

We even asked different departments of a university.

We went to Harvard and we checked almost every department,

and in fact, from Harvard Business School,

where a few people wanted the wealthy to have more and the [poor] to have less,

the similarity was astonishing.

I know some of you went to Harvard Business School.

We also asked this question about something else.

We asked, what about the ratio of CEO pay to unskilled workers?

So you can see what people think is the ratio,

and then we can ask the question, what do they think should be the ratio?

And then we can ask, what is reality?

What is reality? And you could say, well, it's not that bad, right?

The red and the yellow are not that different.

But the fact is, it's because I didn't draw them on the same scale.

It's hard to see, there's yellow and blue in there.

So what about other outcomes of wealth?

Wealth is not just about wealth.

We asked, what about things like health?

What about availability of prescription medication?

What about life expectancy?

What about life expectancy of infants?

How do we want this to be distributed?

What about education for young people?

And for older people?

And across all of those things, what we learned was that people

don't like inequality of wealth,

but there's other things where inequality, which is an outcome of wealth,

is even more aversive to them:

for example, inequality in health or education.

We also learned that people are particularly open

to changes in equality when it comes to people

who have less agency --

basically, young kids and babies,

because we don't think of them as responsible for their situation.

So what are some lessons from this?

We have two gaps:

We have a knowledge gap and we have a desirability gap

And the knowledge gap is something that we think about,

how do we educate people?

How do we get people to think differently about inequality

and the consequences of inequality in terms of health, education,

jealousy, crime rate, and so on?

Then we have the desirability gap.

How do we get people to think differently about what we really want?

You see, the Rawls definition, the Rawls way of looking at the world,

the blind tasting approach,

takes our selfish motivation out of the picture.

How do we implement that to a higher degree

on a more extensive scale?

And finally, we also have an action gap.

How do we take these things and actually do something about it?

I think part of the answer is to think about people

like young kids and babies that don't have much agency,

because people seem to be more willing to do this.

To summarize, I would say, next time you go to drink beer or wine,

first of all, think about, what is it in your experience that is real,

and what is it in your experience that is a placebo effect

coming from expectations?

And then think about what it also means for other decisions in your life,

and hopefully also for policy questions

that affect all of us.

Thanks a lot.

(Applause)