Capitalism and the wealth gap: why does inequality make us unhappy?

Capitalism and the wealth gap: why does inequality make us unhappy?

Status anxiety, shame, and the meritocratic illusion. In the new book Extravagance and Misery by philosophers Alfred Archer, Bart Engelen, and Alan Thomas, the gap between rich and poor is examined: ‘The problem is that success is seen as the result of hard work, while luck and chance often play a much bigger role.

Alfred Archer and Bart Engelen with their new book. Image: Ton Toemen

Why Is Economic Inequality Bad for Society and Ourselves? And why does society cling to the illusion of meritocracy, a system in which social status, privileges, and opportunities are distributed based on individual merit? These and other questions are central to the recently published book Extravagance and Misery by Alfred Archer and Bart Engelen, both ethicists and political philosophers at Tilburg University, and Alan Thomas, a political philosopher at the University of York.

What Do You Investigate in the Book?

Engelen: ‘The title of our book refers to the gap between rich and poor in our society. We explain where this inequality comes from, why it is problematic, and we make a philosophical connection to justice, well-being, and happiness.

‘We also examine the capitalist system that generates this inequality and why it remains so stable. This inequality is problematic because it has a significant negative impact on citizens’ well-being. Yet people do not rise up, and the system persists. We introduce this concept through what we call the ‘emotional regime.”

What Exactly Is This ‘Emotional Regime’?

Engelen: ‘The emotional regime consists of a set of norms and cultural expectations. We tell ourselves stories about how we should feel toward others. In our society, we admire the rich and envy them. They embody ‘success,’ which they are perceived to have earned through hard work. Meanwhile, poor people are viewed with contempt. They are seen as the ‘losers’ of society, and their lack of success is often blamed on personal failure.’

Archer: ‘What stands out is the negative impact of this mindset on the poor. They feel ashamed of their situation, which can lead to social isolation. In extreme cases, shame can even negatively affect a person’s health. At the same time, admiration for the wealthy creates a dangerous dynamic, it fuels an endless status competition, where one never has enough or seems to work hard enough. This constant frustration and status anxiety are harmful to our well-being.’

Is Success Often a Matter of Luck and Chance?

Archer: ‘Yes, absolutely. The problem with meritocracy is that it presents success as something entirely based on individual effort, when in reality, luck and circumstantial factors often play a larger role. People born into wealth have better opportunities, from attending elite preschools to enrolling in top-tier schools and universities. Wealthy parents ensure that their children have the best possible chances.’

Engelen: ‘Meanwhile, people born into poverty, despite their hard work and dedication, may never access the same opportunities. Society is not truly meritocratic, but the illusion that it is makes it even more harmful.’

Does the Idea of Meritocracy Fit Within the Capitalist System?

Archer: ‘Pro-capitalist economists wouldn’t necessarily argue that capitalism is meritocratic. In a true meritocracy, everyone who works equally hard should become equally wealthy. In reality, the capitalist system does not account for this. The market revolves around supply and demand. If someone introduces a product that sells well, they become wealthy, not because they worked harder than others, but because their product happened to be popular.’

Engelen: ‘Yet society clings to the meritocratic illusion. Political parties that refuse to change this fundamental system continue to win elections worldwide. This happens even though the vast majority of people should actually oppose it—they are not part of the wealthy elite, yet they consistently vote against their own interests.’

How Can We Create a Fairer System?

Archer: ‘The ‘meritocratic’ illusion must be dismantled by telling a different story and changing dominant ideas and expectations. How can we do this? By continuously emphasizing that success is not solely dependent on ‘hard work’ but also on a significant degree of ‘luck’ and ‘chance.’ We must also reject the emotional regime by refusing to participate in the widespread admiration of the wealthy.’

Engelen: ‘But changing the emotional regime alone is not enough. Structural solutions are also needed, particularly in education. At present, children of wealthy parents have an unfair advantage—thanks to financial resources, they can afford private tutoring and elite schooling. This increases their chances of attending university, for example.

‘Meanwhile, other children must succeed without that extra support. This must change: we need to intervene and prevent the wealthy from monopolizing opportunities. Accessible, high-quality, and affordable education is a powerful tool to combat this form of ‘opportunity hoarding’, where privileged groups control resources and exclude others.’

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