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This article takes advantage of a unique historical opportunity, the transformation of Central-East Europe with the collapse of Communism, to address a fundamental question in the social justice-equity-legitimation research tradition: how strong is the link between a nation’s economy and its citizens’ normative judgments concerning income inequality? We argue: (1) that the transition from a socialist economy to a free market economy should increase normative support for income inequality; (2) that to the extent that people perceive differences in pay actually to be large, they will believe more inequality to be morally legitimate; and (3) that normative support for income inequality will be higher among better educated people and among those in higher status jobs. We find that normative support for inequality increased dramatically. In Communist times the Polish and Hungarian publics favored less inequality than …