Class, affinity bias, and the myth of meritocracy

3 min read · July 21, 2023
New Power Labs

Tl;dr: Perceptions of affinity are often based on class, impacting our perception of risk and merit when making decisions around access to capital. 

It’s likely that you gravitate towards people like you, whether that’s the camaraderie of a childhood friend you shared a neighbourhood with or the barista wearing a baseball hat from the team you also root for. This type of affinity bias is what bonds us in community and helps build social connections. 

Affinity bias is the tendency to favour people who share similar interests, backgrounds, and experiences with us. This includes class, which is typically defined by one's socio-economic status and which interplays with other facets of identity, such as race, gender, and geography, among others.

The flip side of affinity bias can be a discomfort around those that don’t signal our class, a signalling which often happens within 60 seconds of interaction.

Class bias is particularly notable when it comes to wealth inequality, wherein an initial lack of capital can trap an individual in a poverty cycle as they face higher scrutiny, unfavourable savings and tax rates, and are deemed less creditworthy than those from higher socioeconomic classes. The myth of meritocracy perpetuates existing disparities around class, and can influence the perception of risk among investors and financial institutions. 

Class structures are inherently tied to issues of access, privilege, and power, and conversations around it can challenge deeply held beliefs and norms about fairness, merit, and the nature of success.

Recognizing and openly discussing the role of class in shaping trust and capital flow is essential to address the systemic biases that contribute to inequality, creating a society where access to capital is not disproportionately influenced by one's economic class. 

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