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2024 | OriginalPaper | Chapter

8. Financial Literacy, Economic Inequality, and Trust in Government

Author : Alina R. Oxendine

Published in: Financial Inclusion

Publisher: Springer Nature Switzerland

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Abstract

United Nations (UN) Sustainable Development Goals associated with economic empowerment, financial inclusion, and reducing inequalities are fundamental and timely. This chapter analyzes the political implications of attitudes related to financial literacy, especially as they connect to the global challenge of growing economic inequality. Existing public opinion research suggests that exposure to high inequality influences people’s attitudes toward politics. This discussion analyzes the relationship between inequality and trust in government and how financial literacy shapes these political beliefs.

Data were collected from approximately 1200 adults living in the United States using Amazon Mechanical Turk (MTurk) during January and February 2021. The survey instrument measures people’s perceptions of their finances, financial literacy, trust in government, political efficacy, views about economic inequality, and demographic backgrounds. Results suggest that financial literacy strongly and positively connects to attitudes widely considered healthy in democratic contexts, including confidence in government and political efficacy. Financial literacy also moderates economic inequality’s influence on people’s trust in government. In addition to evaluating connections between inequality, trust, and financial attitudes, this discussion explores the potential long-term consequences of sustainability initiatives and other public policies that address economic injustices.

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Title: Financial Literacy, Economic Inequality, and Trust in Government
Author: Alina R. Oxendine
Publisher: Springer Nature Switzerland
Book: Financial Inclusion
Print ISBN: 978-3-031-68802-7

Electronic ISBN: 978-3-031-68803-4

Copyright Year: 2024
DOI: https://doi.org/10.1007/978-3-031-68803-4_8

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