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How Financial Markets Shape Social Values and Political Views


By Yotam Margalit, Professor, Department of Political Science, Tel Aviv University and
Moses Shayo, Pinchas Sapir Professor of Economics,Hebrew University of Jerusalem. Originally published at VoxEU
The impact of markets on participants’ values and political preferences has long been a contested issue. This column uses a large field experiment to evaluate the effects of engagement in financial markets. Participants from a national sample in England were randomly assigned substantial sums they could invest in stocks or non-financial assets over a six-week period. Results show that investment in stocks led to a more right-leaning outlook on society and economics, including issues like personal responsibility, merit, and the role of luck in economic success. It also increased support for market-friendly policies and less regulation. ....

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