THE AMERICAN DREAM

Land of opportunity

Rags to Riches

We can do anything as long as we try!

Anyone can become rich and powerful!

Meritocracy: skill + effort = reward

Work hard, and you’ll make a better life for yourself and your family!

Austrian immigrant – governor of California

Grew up poor – richest women in America

Russian immigrant – fashion

billionaire

Lived in his car – billion-dollar food empire

THE DECLARATION OF INDEPENDENCE

“We hold these truths to be self-evident, that all men are

created equal, that they are endowed by their

Creator with certain unalienable rights, that

among these are Life, Liberty, and the Pursuit of Happiness.”

SOCIAL MOBILITYSOCIAL MOBILITY

DEFINITION: the movement of families up and down the economic ladder

STATISTICS:40% of incomes stay the same.Only 37 of America’s 400 wealthiest people inherited their money from their family.

20% about the same27% somewhat better39% much better

86% think they are doing the same as or better than their parents

58% agree in 198380% agree in 2005

more and more people think that you can start poor and become rich

SOCIAL STRATIFICATIONSOCIAL STRATIFICATION

DEFINITION: the study of systematic inequality between groups of people.

IN TERMS OF:

Class GenderRace

SOCIAL CLASSSOCIAL CLASS

DEFINITION: the hierarchical distinctions between individuals or groups in societies.

KEY FEATURES:

Wealth: income, savings, investments, property

Power: the ability to do what you desire, even if others opposePrestige: respect and deference for a valued position

SOCIAL CLASS: THE UPPER CLASSSOCIAL CLASS: THE UPPER CLASS

0.5% of Americans belong to the upper class.

Wealth: VERY HIGHPower: HIGHPrestige: HIGH

Wealth: Top 1% owns 33% of all net worth in the United States. Their incomes come mostly from investments such as stocks

and bonds—so they keep making more and more money.

Power: Their resources give them a lot of buying power. Their wealth also gives them a lot of political power.

Prestige: Family names =“rich and powerful.” Examples—Rockefeller, Carnegie, Gates.

SOCIAL CLASS: THE CORPORATE CLASS SOCIAL CLASS: THE CORPORATE CLASS

0.5% of Americans belong to the corporate class.

Wealth: HIGHPower: HIGHPrestige: HIGH

Wealth: They are not as wealthy, but still earns a lot of money. The median salary of a CEO is $10.8 million.

Power: They tend to be heads of companies or in the government. They have a lot of power over the people they direct and in

society.

Prestige: They are in positions where they have a lot of influence. They tend to be considered high-status.

SOCIAL CLASS: THE MIDDLE CLASSSOCIAL CLASS: THE MIDDLE CLASS

43% of Americans belong to the middle class.

Wealth: MEDIUMPower: MEDIUMPrestige: MEDIUM

Wealth: They have some wealth, but less property and lower incomes. The median salary is $34,000 for a teacher, $58,000 for an

engineer.

Power: They tend to work for other people and they have fewer resources. They tend to have less power than the upper or corporate classes.

Prestige: They tend to work white-collar jobs. This gives them respect and some status.

SOCIAL CLASS: THE WORKING CLASSSOCIAL CLASS: THE WORKING CLASS

43% of Americans are in the working class.

Wealth: MEDIUM TO LOWPower: LOWPrestige: LOW

Wealth: They own and earn very little. The median salary is $24,000 for a factory worker, $23,000 for

a machine operator.

Power: They have few resources and work in low positions. Sometimes, they can form unions to get some power.

Prestige: They tend to work in blue-collar jobs. These jobs usually get less respect.

SOCIAL CLASS: THE LOWER CLASSSOCIAL CLASS: THE LOWER CLASS

13% of Americans belong to the lower class

Wealth: LOW TO NONEPower: VERY LOWPrestige: VERY LOW

Wealth: They usually own nothing and work in very low-paying jobs. They tend to be very poor, but only about 33% of them get welfare.

Power: They have few or no resources to help them bargain for power. They tend to be excluded from political processes.

Prestige: They are often jobless or working menial jobs. They get little respect.

CLASS DIFFERENCESCLASS DIFFERENCES

Who lives longer?

Who goes to elite colleges and universities?

Who lives in worse neighborhoods?

Not everyone is mobile.Intergenerational transmission of advantages and disadvantages

Upper class

Upper class

Lower class

LIMITED MOBILITYLIMITED MOBILITY

Least movement on the top and on the bottom

RACIAL INEQUALITY: INCOMERACIAL INEQUALITY: INCOME

Whites and Asians have higher incomes than Blacks and Hispanics.

These RACIAL GAPS are substantial.

Median household income:Whites vs. Blacks: +$15,417Whites vs. Hispanics: +$12,319

RACIAL INEQUALITY: LABOR MARKETRACIAL INEQUALITY: LABOR MARKET

RACE % unemployed in 2000

White 4.3%

Asian 5.1%

Black 11.8%

Hispanic/Latino 9.3%

American Indian 12.4%

Native Hawaiian or Pacific Islander 10.9%

Another racial gap: how many in each racial group are

unemployed?

RACIAL INEQUALITY: HIGH SCHOOL DEGREERACIAL INEQUALITY: HIGH SCHOOL DEGREE

All groups are improving, BUT…

Fewer Blacks and Hispanics

are high school graduates.

RACIAL INEQUALITY: COLLEGE DEGREERACIAL INEQUALITY: COLLEGE DEGREE

Smaller improvements, AND…

Fewer Blacks and Hispanics

are college graduates.

GENDER INEQUALITY: INCOMEGENDER INEQUALITY: INCOME

Thinking about men and women who work full-time…

Median incomeMale: $29,458Female: $18,957

Difference: $10,501

For every dollar men make, women make only 64 cents

GENDER INEQUALITY: LABOR MARKETGENDER INEQUALITY: LABOR MARKET

Are differences because of…

Education?

Hours of work?

Occupation?

Both college graduates, women < men

Both full-time, women < men

Same occupation, women < men

GENDER INEQUALITY: POVERTYGENDER INEQUALITY: POVERTY

Families headed by women are much more likely to be

poor.

THE AMERICAN DREAM?

Land of opportunity?

Rags to Riches?

There is SOME mobility, but it is LIMITED.

The really rich get richer, the really poor get poorer.

Meritocracy: skill + effort = reward?

Some groups—by race, by gender—still get less even if they work just as hard.