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SOCI 201

SOCIAL PROBLEMS in the 21st Century

Professor Kurt Reymers, Ph.D.

Artist: DubFX

Song: Love Someone

Album: Everythinks A Ripple

It’s possible to love someone And not treat them in the way that you want It’s possible to see your eyes Be the devil in disguise with another front

And, it’s possible to change this world Revolutionize the boys and girls It’s possible to educate The next generation that will rule the world someday … Creating a world for the open minded A unique perception of truth inside it I know we could find it It’s just a matter of where and when we collectively decide it The world is not a vicious place It’s just the way we’ve been raised Discovering time and space I know that we could make a change Rearrange the way that we appreciate the world today

…It’s possible to love someone… Is it luck that I love this crazy place, the human race? Don’t get me wrong I still think we could change But this life and the fact that time exists And were here and we don’t come equipped with it all Half the fun is learning and I’m having a ball While the world keeps turning my role is small But I’ll make a change I hope you’re feeling the same way I hope you’re seeing what I say

You say you want a revolution Well you know we all wanna change the world You tell me that it’s evolution Well you know we all wanna change the world But when you talk about destruction Don’t you know that you can count me out You say you got a real solution Well you know we’d all love to see the plan Don’t ya know it’s gonna be alright... You ask me for a contribution Well you know we’re all doing what we can But if you want money for people with minds that hate All I can tell you is brother you have to wait You say you’ll change the constitution Well you know we all wanna change your head You tell me it’s the institution Well you know you better free you mind instead But if you go carrying pictures of chairman Mao You ain’t gonna make it with anyone anyhow

Artist: The Beatles

Song: Revolution

Album: (White Album)

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Standing in line marking time Waiting for the welfare dime ’Cause they can’t find a job. The man in the silk suit hurries by As he catches the poor old ladies’ eyes Just for fun he says “Get a job.” That’s just the way it is Some things will never change That’s just the way it is But don’t you believe them They say hey little boy you can’t go Where the others go ’cause you don’t look like they do Said hey old man how can you stand To think that way, Did you really think about it Before you made the rules

Artist: Bruce Hornsby

Song: The Way It Is

Album: The Way It Is (1986)

Now look at them yo-yo's that's the way you do it

You play the guitar on the MTV

That ain't workin' that's the way you do it

Money for nothin' and chicks for free

Now that ain't workin' that's the way you do it

Lemme tell ya them guys ain't dumb

Maybe get a blister on your little finger

Maybe get a blister on your thumb

We gotta install microwave ovens

Custom kitchen deliveries

We gotta move these refrigerators

We gotta move these colour TV's

Artist: Dire Straits

Song: Money for Nothing

Album: Sultans of Swing

The Bias in the System

Us and them And after all we're only ordinary men. Me and you. God only knows it's not what we would choose to do. … Down and out It can't be helped but there's a lot of it about. With, without. And who'll deny it's what the fighting's all about? Out of the way, it's a busy day I've got things on my mind. For the want of the price of tea and a slice The old man died.

Artist: Pink Floyd

Song: Us & Them

Album: Dark Side of the Moon

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Artist: The Mammals

Song: Satisfied Mind

(orig. by Johnny Cash)

Album: Departure

How many times have you heard someone say, “If I had his money I’d do things my way.” But little do they know that it’s so hard to find one rich man in a hundred with a satisfied mind.

Once I had money, I had fortune and fame, oh lord I had everything, even had a nice name, then suddenly it happened, I lost every dime, I’m richer by far, with a satisfied mind…

For money can’t buy back your youth when your old, nor a friend when your lonely, nor a love that’s grown cold.

The wealthiest person is a pauper in size, compared to the man with a satisfied mind.

Theme: Money and Happiness

- Chapters 2 and 7, Social Problems textbook - The Communist Manifesto (Marx, Squashed Edition)

- Capitalism and Freedom (Freidman, summary) - Crash Course in World History#3 (video)

- 2011 U.S. Census report on poverty (Figures 1-10)

- "The Uses of Poverty," by Herbert Gans (1971)

- "The Super Rich" by Stephen Haseler

- Talk by Prof. Stephen Haseler (video)

- "Some Principles of Stratification” (Davis and Moore, 1944) - “Some Principles of Stratification: A Critical Analysis” (Tumin, 1953) - Recommended: A summary of these two articles - The Corporation, Parts 1-8 (video)

- Recommended: The Corporation, Parts 9-23 - Recommended: Volscho, The Rise of the Super Rich - Recommended: Meadowcroft, Greed and the Market

Topic A: Economic Inequality Readings

Social Class is a function of the type of Political-Economy a society supports.

1. Types of Political Economies: a. Capitalism

i. Private ownership of property Key concept of capitalism

ii. Pursuit of personal profit Simply a “matter of doing business”

iii. Free competition The “invisible hand” (cf. Adam Smith) is at work so leave “the

market” alone

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1. Types of Political-Economies:

b. Socialism

i. Collective ownership

Limits the right to own property;

Forms a classless society

ii. Pursuit of collective goals

Pursuit of profits stands at odds with goals

iii. Government control of the economy

Centrally controlled economy;

Consumers should not drive economy

A. Economic Inequality

A. Economic Inequality

ECONOMIC PRODUCTIVITY

GDP is $13,500,000,000,000

ECONOMIC EQUALITY

More income disparity

OVERALL WELL-BEING

A high quality of life for some, but greater disparities

PERSONAL FREEDOMS

The heart of capitalist systems; need creative forces

ECONOMIC PRODUCTIVITY

GDP is $5,000,000,000,000

ECONOMIC EQUALITY

Less income disparity;

OVERALL WELL-BEING

Lower standards of living, but less disparity;

PERSONAL FREEDOMS

Stress is placed upon freedom from basic needs.

Some socialist economies have failed due to: - underproduction - largely ineffective central governments - low living standards - overly rigid control of personal freedom.

Advantages of Each Type Capitalism Socialism

2. Poverty

a. The “Poverty Line” Figured by taking what it costs to feed a family and multiplying that times a factor of three - $23,050 today for a family of four in 2013. http://aspe.hhs.gov/poverty/12poverty.shtml

In 2011, 46.2 million people were poor, up from 39.8 million in 2008 and 37.3 million in 2007. The nation's official poverty rate in 2009 was 14.3 percent, up from 13.2 percent in 2008 — the second statistically significant annual increase in the poverty rate since 2004. (Census Bureau 2010a p.13)

The poverty rate in 2011 (15%) was the highest since 1994, but was 8.1 percentage points lower than the poverty rate in 1959, the first year for which poverty estimates are available. The number of people in poverty in 2009 is the largest number in the 51 years for which poverty estimates are available. (Census Bureau 2010a p.13)

From: http://www.worldhunger.org/articles/Learn/us_hunger_facts.htm

A. Economic Inequality

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2. Poverty b. Groups hit hardest Children suffer disproportionately

- Over 25 percent of America’s children go to bed hungry, live in poor housing, and suffer more from disease

Women, especially single mothers - The fastest growing group of poor

- Elderly women are the hardest hit, even with increases in social security

- There is a “feminization of poverty” today

Racial and ethnic minorities - One-third of blacks and Hispanics live in poverty

A. Economic Inequality

2. Poverty c. Institutional discrimination creates poverty:

Unfair prejudice or discrimination against individuals as a result of the way an organization or social group is organized.

Poverty is linked to institutional discrimination in the following ways:

Lack of Educational Opportunity: most good paying jobs require a college degree, but the poor cannot afford to send their children to college;

Dead-End Employment: low-end jobs pay low wages so that the poor have no way to improve their conditions;

Political Inaction: The poor do not represent a strong lobby in Washington because they lack the resources to “grease the wheels” of Congress.

A. Economic Inequality

Who’s Responsible for Poverty?

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2. Poverty – Deficiency Theory

d. The Culture of Poverty (NPR news story)

Who’s to blame for poverty?

The real question is how cyclical is poverty? Is there a culture of dependency?

We should treat both the poor AND the rich by the same assumptions (c.f. "corporate welfare").

Cohen: The underlying conditions of poverty are STRUCTURAL.

Research is very careful to recognize MANY factors. Note: Inner city poverty is declining. Rising poverty is in rural, isolated areas and the suburbs - also, areas of business that are not paying a living wage are growing (Wal-Mart, Home Depot, big box McDonaldized corporate businesses, and healthcare system).

People get caught in a "false dualism": Either people are lazy or there are no jobs. BUT NO: it's a much more complex problem.

A. Economic Inequality

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Upper Class

Middle Class

Working Class

Lower Class

3. Growing Inequality in the U.S. a. The U.S. Social Classes

i. The Upper Class = 5% of the population Old Money vs. New Money; Income ~ $250K+; national political

connections (the power elite); high prestige (private school is a must)

ii. The Middle Class = 40% and shrinking White/Gray Collar workers; Income ~ $50K- $250K; Local political connections; Education (prestige) is important;

iii. The Working Class = 30% and growing The old “industrial class”; Blue Collar workers; Income ~ $20K-$50K;

Prestige not as important (pride in work)

iv. The Lower Class (or “Underclass”) = 25% Working poor; Low level service work > $20K; Welfare poor – no work

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Average U.S.

Annual Income,

1980-2006 (in 2006 dollars,

adjusted for inflation)

The gap between high-

income and low-income

families is wider today than it

was in 1980.

Source: U.S. Census Bureau (2007).

Society: The Basics, 10th Edition by John Macionis Copyright 2009 by Pearson Education, Upper Saddle River, NJ 07458. All rights

reserved.

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Distribution of Income and Wealth in the United States Income, and especially wealth, is divided unequally in U.S. society.

Sources: Income data from U.S. Census Bureau (2007); wealth data based on Keister (2000), Bucks et al. (2006),Wolff (2007), and author estimates.

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3.b. How are the classes perpetuated (or made to continue, like castes)?

i. Wealth and power is highly concentrated in

the upper class Example: A very small percentage of the population still controls over half of the

corporate stock. Inheritance laws keep money in the upper class.

ii. The law favors the rich Access to legal representation for the poor has been disabled; The “average” American still cannot use the legal system to the same as extent as

the rich.

iii. The educational system reproduces class inequality Example: Average income of the family of Harvard student: $150,000 vs.

U.S. Average family income: $50,000

iv. Some ascribed statuses lead to different treatment:

Women and people of color are victims of status discrimination

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3.c. The Super Rich i. Video: Prof. Stephen Haseler

3:00 1960-70s: Freedom vs. Equality – Freedom wins! YAY! Reagan, Thatcher legacy 4:00 Redistribution and equality is gaining "renewed interest"? Give examples (Occupy, Pres Obama "Hope and Change", etc)

4:30: THESIS: The fragmentation and end of the Western middle class 6:00 Researched the U.S. in mid-1990s: “American wages as a percentage of income have stayed virtually the same since 1973. The rewards for working are much less than the rewards of inheritance, capital, and profit. 7:00 This is a killer for any Western economy that hopes to expand; decreases incentive to work” 8:45 Reason for devaluation of work is the hijacking of the economy and political world by the financial system.

10:00 Undermining the middle class is flirting with democracy itself. The mega-rich control the political system. 11:30 The super rich class buys public opinion. Who owns the media? In England, almost ALL the owners of British media outlets live outside of England. 13:00 Not a moral argument against the super rich: it is a "prudential" one. Increased "pauperization" is going to undo the economic and political system. "Plutocracies with a large and decaying middle class has shown a history of leading to extremism, bitterness and polarization." 14:00 A plutocracy together with a decaying middle class is asking for trouble.

A. Economic Inequality

Jeffrey C. Barbakow, Tenet Healthcare $22,785 per hour $116.4 million for 2002. Doesn't include new stock options with potential value of $72.4 million. Tenet's 2002 stock price change: +63.8%

Michael S. Dell, Dell Computer $16,100 per hour, $82.3 million for 2002. Doesn't include new stock options with potential value of $37.5 million. Dell's 2002 stock price change: -13.2%

3.c. ii. CEO Salaries Unprecedented increases in the last 20 years

I've reduced these three CEOs' compensation in 2002 to hourly rates. What their hourly pay would be if they worked 14-hour days every day of 2014?

Scott G. McNealy Sun Microsystems $5,053 per hour $25.8 million for 2002. Doesn't include new stock options with potential value of $61.2 million. Sun's 2002 stock price change: -68.1%

Median CEO pay at a large company:

$1,017 per hour, $5.2 million for 2002

Others' hourly pay: President Obama: $200.00 Army Gen. Tommy Franks: $69.10 Physician: $60.14 Grade-school teacher: $28.01 Firefighter: $17.16

Average worker: $16.23 Taxi driver: $8.67

Source: USA Today

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3.d. Theories of Stratification Types:

Functional Theory vs. Conflict Theory i. Functionalists believe that stratification is a function of

social values. Functionalism was the dominant perspective in sociology in the first half of the 20th century. The Argument: Society values some positions more than others (for example doctors vs. maintenance workers). But many have been quick to point out that these values do not always function well for society. For example, compare celebrity salaries to those of hard working, important people like the President. Social Class in America – 1957 (1 of 2)

ii. Conflict theorists believe that social stratification is based on how power is distributed throughout society. Conflict theory became the dominant theory in the second half of the 20th century. Karl Marx argued that in capitalist nations, power is represented by ownership. Who owns American society? (Carlin) How do the elite maintain their power? (Chomsky)

2 Groups: The Political Class (20%); Everyone Else (80% Obedient Workers)

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3e. Factors in Urban Poverty

i. The principal effect of the city as a built environment is population concentration. This also creates concentration of social problems, like poverty

ii. Urban populations recently have been disproportionately affected by social forces stemming from other countries - immigration brings with it specific problems, as does “job migration” (jobs moving overseas).

A. Economic Inequality

3e. Factors in Urban Poverty

iii. Changes in the global cycle of investment have had large consequences for ALL classes.

For example: after the stock market crash in 1987, 100,000 people were laid off from brokerage and financial services nationwide. In the 2008 crash, jobs did not recover despite the finance and mortgage industries being bailed out. This intensifies middle class struggles, as Stephen Haseler suggests.

iv. Patterns of differential resource allocation - i.e., uneven development, may be accentuated in cities.

For example, “food deserts” are locations where only fast/junk food is available within walking distance.

- Big cities are now major financial centers - this brings extreme wealth and its attendant signs and symbols; nearby, however, are also those who suffer in complete poverty.

- Large differences in class situations may lead to class

conflict.

A. Economic Inequality

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4. Corporations and Globalization

Corporation: An organization with a legal existence, including rights and liabilities, separate from those of its members

a. Corporate Globalization has created: i. Economic concentration In 2012, Exxon-Mobil was the largest with $442 billion in revenues

Next are Wal-Mart ($405b.), Chevron ($263b.) and ConocoPhillips ($200b.)

ii. Conglomerates & mergers Merger: Strategy for diversification of assets (protectionism); Mergers create Interlocking directorates

Same network of people serving as board members for many corporations

iii. Lack of Competition - Monopoly: Domination of a market by one corporation; - Oligopoly: Domination of a market by a few corporations.

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Anthropology, Tenth Edition by Carol R. Ember, Melvin Ember, and Peter

N. Peregrine © 2003 Prentice Hall. A Division of Pearson Education. All rights reserved.

4. Corporations and Globalization

Global Distribution of

Economic Activity

(1991, 2000)

4. Corporations and Globalization

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4. Corporations and Globalization

4. Corporations and Globalization

iv. Corporate globalization has impacted indigenous peoples (like the Kalahari San “Bushmen” of Botswana and South Africa)

The San and “salvage ethnography” Richard Lee presents a 1969 view of the Bushmen, shown living similarly to the way they did 10,000 years ago. Are these the “true” San?

YouTube1 – Tourist Video | YouTube2 – Nat. Geo. | YouTube3 – Wild Kingdom

In fact, more and more throughout the 20th century, modernization has deeply impacted previously isolated cultures like the Kalahari San.

YouTube3 – End of a Myth | YouTube 4 – People & Power

Other examples exist… (Brazilian example) – (Borneo/Penan Pts.1 - 2 - 3 - 4 - 5 - 6 - 7) (Indonesian example) – (Australian example - Banjo Clarke )-- (New Guinea example -Trip Jennings, Epicocity)

A. Economic Inequality