The Color of Disparity: Racialized Income Inequality and Support for Liberal Economic Policies

A corpus of research on the effect of exposure to income inequality on citizens’ economic policy preferences renders inconclusive results. At the same time, a distinct body of work demonstrates that ethnic fragmentation within a polity reduces government spending, presumably due to opposition among the public to spending believed to benefit stigmatized ethnic minorities. Focusing on the American context, this short article ties these two bodies of work together by arguing that the effect of routine exposure to income inequality should depend on the racial composition of the have-nots, with citizens being most likely to support liberal economic policies in the face of pronounced inequality only when potential beneficiaries are not a highly stigmatized minority group, such as Black Americans. Using geocoded survey data, we find that exposure to local economic inequality is only systematically associated with increased support for liberal economic policies when the respective have-nots are not Black.