Psychosocial consequences of perceiving the role of money in politics: Mobilization and democratic erosion

Mounting evidence suggests that extreme economic inequality can undermine democratic functioning, particularly when the ultra-wealthy exert disproportionate influence over political decision-making. Public awareness of this issue is growing, with the role of money in politics now ranked among the most pressing concerns in the U.S. As these dynamics become more visible in public discourse, they raise critical questions about how individuals psychologically and behaviorally respond to the perceived overlap between concentrated wealth and political power. Such perceptions may trigger divergent consequences: they could motivate citizens to engage in efforts to reduce inequality, but also foster disillusionment and democratic erosion.
We report findings from a series of studies examining the psychosocial consequences of perceiving that economic inequality extends into the political domain. Study 1 (N = 493) and Study 2 (N = 495) were preregistered cross-sectional studies conducted with North American samples. Both studies showed that perceived overlap is associated with a dual pattern of responses: on one hand, greater support for redistribution, collective action, and petition signing; on the other, greater perception that economic inequality threatens democracy, lower satisfaction with democracy, reduced political efficacy, and diminished trust in government institutions. These findings suggest that perceiving economic-political concentration can simultaneously activate civic engagement and democratic erosion.
Study 2 also tested a mediation model, revealing that the perception that economic inequality poses a threat to democracy plays a central role in linking perceived overlap to mobilization. This suggests that concern for democratic ideals—widely shared and normatively valued—may be a key psychological mechanism driving support for actions to reduce economic inequality when this enters the political arena. Exploratory analyses further indicated that ideological justifications for the overlap may buffer individuals from democratic concern and reduce mobilization.
To test causality, a preregistered experimental study, Study 3, is currently underway. In this study, we manipulate perceived overlap between economic and political power to assess its causal impact on attitudes and behaviors aimed at reducing inequality, but also on outcomes related to democratic erosion.
Together, these studies illuminate a complex psychological landscape: perceiving concentrated wealth and power can fuel political engagement aimed at restoring fairness, but may also erode democratic functioning. Understanding these dynamics is essential in a time when economic inequality and its political implications are increasingly visible and consequential.