Clayton

“Intuitively, it would be good to know whether someone’s income comes down to influential connections or chance – in which case the beneficiary has done nothing to deserve it and the redistribution ought to be total (a tax rate of 100 percent). Many people share this point of view. Even the most conservative American Republicans, who are opposed to many redistributive policies, think disabled people are not responsible for their condition and society should help them. But if, on the contrary, income is the result of an effort or an investment, there is a convincing argument for a tax rate that leaves room for incentives. The problem is that we have only a vague idea of what generates financial success: Is it effort or circumstances? On this question, economists, sociologists, and psychologists have discovered an astonishing phenomenon: 29 percent of Americans believe that poor people are caught in a poverty trap, and 30 percent believe that success is due to chance and not to effort or education; for Europeans, the figures are 60 percent and 54 percent, respectively.52 Similarly, 60 percent of Americans (including a large proportion of the poor) and only 26 percent of Europeans answered “yes” to the question: Are poor people poor because they are lazy or lack determination?”
― Jean Tirole, Economics for the Common Good