copyright © allyn & bacon 2010 wealth and poverty: u.s. and global economic inequalities this...

Copyright © Allyn & Bacon 2010

Chapter Two:Wealth and Poverty:

U.S. and Global Economic Inequalities

This multimedia product and its contents are protected under copyright law. The following are prohibited by law:

• any public performance or display, including transmission of any image over a network;• preparation of any derivative work, including the extraction, in whole or in part, of any images;• any rental, lease or lending of the program.


Chapter Two Outline• Quality of Life Indicators• Life chances• Absolute Poverty

Global Perspective

•Social Stratification•Wealth vs. Income•Class divisions

U.S. Class Inequality

•Poverty Rate and Poverty Line•Who are the Poor?•Consequences of Poverty

Poverty in the U.S.

•Welfare state•Explanations of Poverty•Solutions to Poverty?

Social Welfare


Land of OpportunityAmerica has been called the “Land of

Opportunity” due to:Possibility of achieving “The American Dream”

Each generation can potentially have a higher standard of living than those that came before.

Possibility of social mobility: Upward or downward movement in a class system

A class system is a system of social inequality based on ownership and control of resources


Global PerspectiveThere is economic disparity both between

nations and within nations of our world.Nations can be ranked into 3 categories:

High-income nations

• Highly industrialized economy

• High national and per capita income

• Ex: U.S., Canada, Japan

Middle-income nations

•Transforming from agrarian to industrial economy•National and per capita income is somewhat low•Ex: Colombia, Guatemala, Poland

Low-income nations

•Primarily agrarian economy•Very low levels of national and per capita income•Ex: Sub-Saharan Africa


Global DisparityGap between richest and poorest nations is

increasing.

Quality of Life indicators (life expectancy, health, sanitation) show that there is disparity in life chances of individuals around the world.Life chances: having access to important resources

(food, shelter, health care, clothing).

Unequal access to resources leads to 1.3 billion people who live in absolute poverty:Inability to secure most basic necessities of life.


U.S. Class InequalityU.S. has significant social stratification:

Hierarchy of social groupsSome groups control more resources than others

U.S. stratification system has changed over time:Gap between “haves” and “have nots” is

increasing.Life chances for poor in America are decreasing.


Measuring Social ClassKarl Marx (1818-1883) takes a unidimensional

approach.

Class position determined by relationship to means of production in capitalist society:Bourgeoisie: own means of production Proletariat: work for those who own means of

production

Bourgeoisie exploit workers leading to inequality and poverty in society.


Measuring Social Class cont.Max Weber (1864–1920) takes a multidimensional approach

Wealth: Value of economic assetsPower: Achievement of goals despite oppositionPrestige: Respect and esteem from others

The interplay between these factorsdetermines one’s position

Wealth

Prestige

Power


Measuring Social Class cont.Erik O. Wright (1997)

Recent theory of class has 4 criteria for placement with corresponding class distinctions:

Criteria for placement: Class:

Ownership of means of production

Capitalist class

Purchase of labor of others Managerial class

Control of labor of others Small business class

Sale of one’s own labor Working class


Wealth vs. Income InequalityWealth Income

Value of all economic assets

Wealth more unevenly distributed than income

Poorest 20% of U.S. families have NO wealth

Minorities have accumulated less wealth than whites

Economic gain from salaries and wages

Big gap between highest and lowest income earners in the U.S.

Median income for Blacks and Hispanics remains lower than that of Whites


Class Divisions in U.S.Upper Class:

Wealthiest and most powerfulMade up of investors and heirs

Upper-middle class: Control production in societyMade up of professionals (doctors, attorneys,

stockbrokers)

Middle class:White collar workers, middle management


Class Divisions in U.S. cont:Working Class:

Semiskilled workers in industry and nonmanual positions

Made up of daycare workers, cashiers

Working Poor:Work full time Made up of unskilled and lowest paid service positionsRemain at edge of poverty

Chronically Poor:20% of U.S. populationNegative net worth (owe more than they own)


Poverty in the U.S.Poverty Rate: % of population below governmentally defined

poverty line.Fluctuates from year to year12.3% (36.4 million people) in 2006


Poverty in the U.S. cont:Poverty Line:

Established in 1965 by Social Security Administration

Formula takes market basket (low cost, nutritional food budget) and multiplies by 3 (for non food costs).

Adjusted each year for inflationTakes into account family sizeSome believe it is out of date as formula is

based on 1960’s standards.


Who are the poor?Characteristics associated with greater poverty

risk:Gender:

2/3 of adults in poverty are women Households headed by women are fastest growing

segment of poor Feminization of poverty: trend where women are

disproportionately represented by those in povertyAge:

Children under 18 make up 40% of those in poverty (but only 25% of overall population)

1 in 6 kids lives in poverty, if under age 6 then 1 in 4 kids live in poverty. (2006)


Who are the poor? cont:Race:

Minorities are very overrepresented in poverty


Consequences of povertyLimited access to health care

Inadequate nutrition which leads to medical problems

Difficulty finding affordable housing

Reduced educational opportunitiesFewer years of schoolingLess likely to graduate from high school or college


Social WelfareWelfare state:

Started in 1930s under Roosevelt’s New DealAssistance programs for housing, health,

education, income

Several changes made to program over time:Economic Opportunity Act of 1964

Started “war on poverty” with Head Start, Job Corps, Manpower Development

Poverty rate dropped following new programs1996 Welfare Reform

Limited amount of time recipients can receive assistance


Explanations of poverty

Individual Explanations:Focus on lack of motivation and lazinessLack of human capital (education and experience)Seen by most sociologists as blaming the victim

Cultural Explanations:Focus on cultural deficiencyCulture of poverty theory: develop attitudes and

behaviors which keep one trapped on povertyLack of cultural capital (social assets such as

language)


Explanations of poverty cont.Structural Explanations:

Takes a macro approachChanges in economy put people in poverty

through no fault of their own Downsizing, layoffs, increase in technology


Solutions to poverty:No consensus on causes of poverty results in no consensus on solutions to poverty.

Functionalist Solutions:Strengthen social institutions (education,

family) so they can help meet the needs of poor individuals

Conflict Solutions:We must reduce gender, racial, and class

inequality before we can eliminate poverty.Symbolic Interactionist Solutions:

Reduce stigma associated with being poor by changing how we view those in poverty.

copyright © allyn & bacon 2010 wealth and poverty: u.s. and global economic inequalities this...

Documents

copyright allyn bacon

social welfare slide

class system

class inequality poverty

poverty line

copyright law

system of social inequality

class position