Our social circles are organized partly according to our own wealth - wealthier people know relatively wealthier people, poorer people know relatively poorer people - and this has an influence on how we think about income is distributed more widely across society.

Psychological scientist Rael Dawtry explains how personal wealth influences our perception of the wealth of others, why increasing economic and social segregation contribute to a skewed view of financial reality, and the political effects of a polarized population.

Rael is co-author of the study Why wealthier people think people are wealthier, and why it matters.