Chapter 8

Social Class

&

Social Stratification

1

Social Stratification

• Social stratification is a system of structured social inequality.

2

Estate, Caste & Class systems

• Stratification systems are usually categorized into one of these three types:

1. Estate -- a system in which a small elite group (owners of property and power) have total control over society’s resources.

2. Caste -- a system where status is assigned based on one’s ascribed status.

3. Class -- a system based primarily on achieved status; however one’s ascribed status can matter.

3

Socioeconomic Status (SES)

– Income

– Occupational prestige

– Educational achievement

4

***Activity & Discussion Topic

• On a piece of paper, mark down the social class to which you and your family belong.

– What type of work do you do? Do they do?

– How much money do they make annually?

• Share your thoughts on the subject of social class, but do not feel compelled to share you social class with the class.

• At the end of this lesson, see if you have changed your mind about which class you and/or your family belong in.

5

Income Distribution in the U.S.

Social Class Differences

7

8

Median Income in the U.S.

Mean Household Income Received by Different Income Groups, 1970-2007

Wealth Inequality

• The United States is one of the most “unequal” nations in the world using wealth as the criteria.

– The wealthiest 1% own 33% of all net worth.

• The bottom 80% control only 16%.

– The top 10% also own 88% of all stock.

• The bottom 40% own less than 1% of total stock holdings.

11

Poverty

• Poverty line is the amount of money needed to support the basic needs of a household.

12

Poverty & Race • 37 million people are poor in the United States,

representing 12.5 percent of the population (2008).

• 33% of Native Americans

• 25% of Blacks

• 22% of Hispanics

• 10% of Asians and Pacific Islanders

• 8% of non-Hispanic Whites

13

Poverty & Gender

• The vast majority of the poor have always been women and children, referred to as the feminization of poverty.

14

Poverty among the Old and the Young, 1965-2007

Child Poverty in the Wealthier Nations

16

Children in Poverty

• By 2007, 18 % of all children (those under age 18) in the United States were poor.

• 10% of non-Hispanic White children

• 35% of Black children

• 29% of Hispanic children

• 12% of Asian American children

17

Homeless in America

18

Over a period of one year, the estimate of the homeless population: about 3.5 million people.

19

Poverty & Homelessness

Video “Homeless: A Cruel Reality”

– http://www.youtube.com/watch?v=8VlwkKRjOwk&NR=1

20

Causes of Poverty

The Culture of Poverty

• Success requires only individual motivation and ability

• The absence of work values and the irresponsibility of the poor

• The breakdown of the family, schools, and churches

Structural Causes of Poverty

• Restructuring of the economy

• Health care system• The status of women in the

family and the labor market• Childcare system• Diminished social support

(welfare, public housing and job training)for the poor

etc.

21

• Luxury Homes

• Paywizard.org

Salary, Income and Paycheck data for Steve Jobs, Bill Gates, Larry Page and other CEO's and Corporate Celebs

Social StratificationFunctionalist view

• Inequality serves an important purpose in society

• Some positions in society are more functionally important than others

• Rewards are attached to certain positions

• Beliefs about success and failure confirm the status of those who succeed

NFL salariesActor salaries

Conflict Theorist view

• Inequality results from a system of domination and subordination

• The more stratified a society, the less likely that society will benefit from the talents of all its citizens

• The most vital jobs in society are usually the least rewarded.

23

• Bailout and salaries of involved CEO’shttp://www.paywizard.org/main/VIPPaycheck/

bailoutceopayCEO payhttp://www.paywizard.org/main/VIPPaycheck/

dollarsalaryclub

24

25

Karl Marx on Social Class

– Bourgeoisie --- the owners of the means of production.

– Proletariat --- the workers, those who sold their labor; also referred to as the exploited masses.

– False Consciousness---the Marxist thesis that material and institutional processes in capitalist society are misleading to the proletariat, and to other classes.

26

Max WeberClass, Status & Party

• Multidimensional stratification system comprised of three dimensions:

1. Class – economic forces

2. Status – prestige, culture, the social aspects

3. Party – power, the political dimension

• One’s position in each of these dimensions influences their life chances.

27

Class Consciousness• Karl Marx & Max Weber

• Class consciousness is awareness of:

– the existence of a class structure

– your shared identification with others in a given class, life chances

• 3% - upper class• 46% - middle class• 46% - working class

• 5% - lower class

the National Opinion Research Center (2004)

28

Social Mobility:Myth or Reality

• Mobility can be intergenerational or intragenerational.

– Intergenerational is movement between generations.

– Intragenerational is movement within the same generation.

29

Social Mobility• Social mobility is affected by more than individual

effort.

– It is also affected by widespread social conditions such as stock market performance, recessions, technology, and globalization.

• Mobility is a reality in the U.S., but not everyone will achieve it.

30

Social Stratification Game

31

Social PolicyFunctionalist view

• Because the system is basically fair, social policies should only reward merit.

Conflict Theorist view

• Because the system is basically unfair, social policies should support disadvantaged groups by redirecting society’s resources for a more equitable distribution of income and wealth.

32

***U.S. Welfare Program

33

Welfare benefit

• health care• food stamps• child care assistance• unemployment benefit• cash aid• housing assistance

34

Food Stamp (NYS)

35

The Food Stamp Program issues monthly benefits that can be used to purchase food at authorized retail food stores.

Cash Aid (NYS)

36

Monthly Shelter Allowance (for a family of four with children) $292 (Franklin County) $503 (Suffolk County)

Temporary Assistance for Needy Families (TANF) (1996)

Federal Requirements– Families can receive aid for a maximum of 5 years– After 2 years they must work (money earned is

deducted from the aid money). – Teens with children under 18 are ineligible unless

they go to school and live with their parents.– single parents are required to work at least 30 hours

per week. (two parent families: to 35 or 55 hours)– Mothers must inform the state who the father of the

child is, and he must contribute to the child’s support.

37

True or false

1. Income growth has been greatest for those in the middle class in recent years.

2. The average American household has most of its wealth in the stock market.

3. Old people are the most likely to be poor today.

4. Social mobility is greater in the U.S. than in any other Western nation.

38

Percentage share of income (poorest and richest 20% of population)

39

The U.S. 40.8 5.2% 46.4%

Source: World Development Index 2002, The World Bank.

International comparisonJapan• President, Toyota Motor Co.: less than 100 million yen ($1.1 million)• President, Honda Motor Co.: 115 million yen ($1.3 million)• Toyota’s top 38 executives received an average of 53.1 million yen

($583,000)

The U.S.• President, Ford Motor Co. : $13.6 million• Donald Trump (Trump Organization): $50 million

Resource: Businessweek.com

40