Americans acknowledge the large gap between rich and poor, but are they aware of its growth? This article examines how public perceptions develop regarding rising income inequality. It argues that people rely on basic economic information to form opinions about inequality gaps, yet geographic context — specifically American states — significantly shapes these views.

Using a novel measure tracking state-level perceptions over 25 years, the research explores whether objective changes in inequality influence public attitudes. Time-series cross-sectional analyses reveal that public awareness of growing inequality is heavily influenced by state economic indicators and political ideology.

The findings suggest several implications: first, despite media attention to inequality gaps, many Americans may not fully grasp its expansion; second, state context plays a crucial role in shaping perceptions; third, understanding these patterns can help policymakers better anticipate public reactions to expanding income differences. This work contributes to ongoing debates about economic justice and democratic accountability by clarifying how ordinary citizens develop opinions on complex economic issues.