Lesson 5: Social Class and Inequality Social Problems Robert Wonser 1.
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Transcript of Lesson 5: Social Class and Inequality Social Problems Robert Wonser 1.
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Lesson 5: Social Class and Inequality
Social ProblemsRobert Wonser
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Social Class
Groups stratified by their access to resources
Resources may include wealth, income, education, employment, land
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Understanding InequalityInequality is the unequal access
to scarce goods or resources. It is the result of abundance. It is found in most, if not all,
societies. It is a question of how unequal
a society is. How unequal is the United
States?
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How does the US compare to other nations?
Percentage of wealth held in 2000 by the Top 10% of the adult population in various Western countries
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International Comparison of Poverty Rates among Wealthy Countries
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Defining Poverty
Absolute measure
Based on a threshold, usually annual income Criticisms?
Relative measure
Compares person or group to the rest of the community or society Criticisms?
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Poverty Threshold
Takes age, family size, and number of dependent children into account when determining amount of people living below the poverty line
Example:
In 2012, poverty threshold was $23,283 for a four person household with two children under 18
$18,498 for a three person household two children.
Can you get by on poverty wages?
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Extreme Poverty Neighborhoods
Areas with poverty rates of 40+ percent
These areas often have higher crime, poor health outcomes, and fewer education and job opportunities
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Karl Marx’s (1818-1883) Views on Class
Class based on ownership of the means of production
Capitalists own factories and other mechanisms to produce goods
Working class sells their labor to capitalists in exchange for wage
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Social Classes in the United States
The upper class (capitalist class): Wealthiest people in a class
systemMake up about 1% of the U.S.
populationPossess most of the wealth of the
country
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The United States is a Rich Society?
Only when you include those at the top. Exclude the top quintile and the picture is different.
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Who are the 1%?
With 376,076 members, the largest single group in the 1 percent are those who listed their occupation as a manager.
Lawyers who work on Wall Street are twice as likely as those in general practice to make the top 1 percent.
Physicians who work primarily in doctor's offices are somewhat more likely to make the cutoff, though all doctors are well-represented in the group.
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In 2010, the top hedge fund manager earned as much in one HOUR as the average (median) family earned in 47 YEARS.
The top 25 hedge fund managers in 2010 earned as much as 658,000 entry level teachers.
In 1970 the top 100 CEOs made $40 for every dollar earned by the average worker. By 2006, the CEOs received $1,723 for every worker dollar.
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How are stocks distributed? Dow closed
today (3/11/2013) over 14,400.
A new record….
Whose wealth is this measuring?
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What’s the Dow at Recently?
The Dow closed on August 26, 2014
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Ratio CEO pay to Workers’ Wages
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Social Classes in the United States
The upper-middle class: Professionals and managers Make up about 14% of the U.S.
population Benefited the most from college
The middle class consists primarily of “White collar” workers Have a broad range of incomes Make up about 30% of the U.S.
population
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Social Classes in the United States
The working (lower-middle) class: “Blue-collar” or service industry
workers Less likely to have college degrees Make up about 30% of the U.S.
population
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Social Classes in the United States
The lower class (the working poor):Many poor people who
typically have lower levels of education than other classes
Make up about 20% of the U.S. population
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Max Weber (1881-1961)
Three aspects of stratification
Class Position in economic sector
Status Social position based on honor,
education, prestige, religion, and other characteristics
Power Political connections and affiliations
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Income vs. WealthIncome
Money from sources such as earnings, unemployment compensation, social security, interest and dividends, and rental income
Wealth
Family or household’s net worth, the difference between the value of these assets and the amount of debt
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Other Dimensions of Inequality
Race/Ethnicity
Gender
Access to healthcare and health insurance Many negative health conditions associated
with poverty
Likelihood of being imprisoned
Education
Access to housing
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Functionalism and PovertyDavis and Moore “Some Principles of Stratification” (1945)
Some positions in a society are more specialized and valuable
Only a few have the talent for more important positions
Learning those skills require sacrifices, must receive more resources and rewards to compensate
Different positions in the social hierarchy have different levels of prestige and esteem
Social inequality inevitable and functional
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Functionalism and Poverty
Herbert Gans (1971)
Poverty can have positive functions
Get “dirty work” done cheaply
Encourage purchase of lower quality products
Give higher status to others (someone must be at the bottom)
But functions of poverty can be both economically and morally costly
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Poverty and Symbolic Interactionism
Oscar Lewis’s Culture of Poverty Thesis (1969)
The poor hold a unique set of values and beliefs that makes it difficult for them to escape poverty Sense of powerlessness Feelings of inferiority Lack of work ethic
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Poverty and Conflict Theory
Groups have different interests that come into conflict with one another
Poverty is systematic
Karl Marx
Workers alienated from their labor because they have little say in what they do in the production process.
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Income, Net Worth and Financial Worth
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Distribution of Net Worth
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Financial (Non Home) Wealth
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Net worth and financial wealth distribution in the U.S. in 2010
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Wealth distribution by type of asset, 2010
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Share of wealth held by the Bottom 99% and Top 1% in the United States, 1922-2010.
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Distribution of income in the United States, 1982-2006
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Top income shares in the U.S. and Sweden, 1950-2009
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CEOs' pay as a multiple of the average worker's pay, 1960-2007
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37CEOs' average pay, production workers' average pay, the S&P 500 Index, corporate profits, and the federal
minimum wage, 1990-2005 (all figures adjusted for inflation)