Wealth and Income Inequality: Key Concepts and Policies

Wealth Gap

The unequal distribution of assets among different groups in a society, often wider than income inequality.

Income vs. Assets

Income refers to money earned regularly, while assets are things of value owned that can generate income or appreciate over time.

Income and Wealth Gaps by Race

Disparities in income and wealth between different racial groups, often reflecting historical and ongoing systemic inequalities.

Redistribution of Wealth

Policies and practices aimed at reducing wealth inequality by transferring wealth from the rich to the poor.

Great Compression

A period in the mid-20th century when economic inequality in the US decreased significantly.

Great Divergence

The widening of income inequality since the 1970s, reversing the trends of the Great Compression.

Economic mobility

The ability of individuals or families to move up or down the economic ladder over time or across generations.

Racial Capitalism

A term describing how racial exploitation and commodification are embedded in capitalist economies.

Neoliberalism

An economic and political philosophy emphasizing free-market capitalism, deregulation, and reduced government spending.

Austerity

Economic policies implemented by governments to reduce budget deficits, often through spending cuts and tax increases.

New Deal

A series of programs and reforms implemented in the US during the 1930s to combat the effects of the Great Depression.

Minimum Wage

The lowest wage rate an employer can legally pay workers, set by government regulation.

Social Safety Net Programs

Government-funded programs designed to provide financial support and services to individuals in need.

Shifting Tax Burdens

Changes in tax policies that alter who bears the greatest share of taxes, often discussed in terms of progressivity or regressivity.

Planned Shrinkage

A controversial urban planning strategy involving the deliberate reduction of city services in certain areas.

Enclosure Movement

The historical process of privatizing previously common land, often associated with the transition to capitalism.

Postindustrial City

Urban areas that have transitioned from manufacturing-based economies to service and information-based economies.

Rent Gap

The disparity between the current rental income of a property and its potentially achievable rental income.

Gentrification

The process of changing the character of a neighborhood through the influx of more affluent residents and businesses.

Urban Renewal

Government-sponsored destruction of low-income and working-class neighborhoods for redevelopment, often criticized for displacing communities.

Social Housing

Affordable housing provided for people on low incomes or with particular needs by government agencies or non-profit organizations.

Fiscal Crisis

A situation where a government struggles to fund its operations or meet its financial obligations, often leading to budget cuts or increased borrowing.

Meritocracy

A system where advancement is based on individual ability or achievement rather than factors like wealth, social class, or race.

EFCB and MAC

Acronyms related to New York City's fiscal crisis in the 1970s. EFCB stands for Emergency Financial Control Board, while MAC refers to Municipal Assistance Corporation.

Municipal Bonds

Debt securities issued by local governments to finance public projects or operations.

Flexibility/Flexibilization

The trend towards more flexible labor markets, often characterized by part-time work, temporary contracts, and reduced job security.

"Race to the Bottom"

A phenomenon where companies or governments compete by lowering wages, weakening regulations, or reducing social benefits to attract business.

Dual Labor Market

A theory suggesting the labor market is divided into primary (stable, well-paid) and secondary (unstable, low-paid) sectors.

FIRE (Acronym)

Stands for Finance, Insurance, and Real Estate, sectors that have become increasingly dominant in many urban economies.

Sociological Imagination

The ability to see how individual experiences and actions are shaped by broader social forces and historical context.

Deunionization

The decline in labor union membership and influence over time.

Poverty Line/Poverty Threshold

An income level set by the government below which a person or family is officially considered to be living in poverty.

Market Rationality

The idea that free markets are the most efficient way to allocate resources and organize economic activity.

NYC Fiscal Crisis Winners & Losers

Refers to the groups that benefited or suffered from New York City's financial crisis in the 1970s and the subsequent policy responses.

Urban Crisis

A term used to describe the economic, social, and physical decline of many American cities in the mid-20th century.

Great Migration (African Americans)

The movement of millions of African Americans from the rural South to urban areas in the North and West during the 20th century.

The Great Depression

A severe worldwide economic depression that began in 1929 and lasted until the late 1930s.

National Labor Relations Act (Wagner Act)

A 1935 US labor law that guaranteed workers the right to form unions and engage in collective bargaining.

GI Bill

A law that provided a range of benefits for returning World War II veterans, including low-cost mortgages and college tuition.

1956 Federal Highway Act

Legislation that authorized the construction of the Interstate Highway System in the United States.

New Deal Coalition

An alliance of voting blocs and interest groups that supported the Democratic Party from the 1930s to the 1960s.

Federal Housing Administration

A US government agency that provides mortgage insurance on loans made by FHA-approved lenders.

1968 Fair Housing Act

A law that prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, and disability.

Poverty as Pathology

A perspective that views poverty as a result of individual or cultural deficiencies rather than structural factors.

Culture of Poverty

A controversial theory suggesting that the poor have a unique value system perpetuating their condition.

Poverty as Incident/Accident

The view that poverty is a result of unfortunate circumstances or bad luck rather than systemic issues.

Poverty as Structure

The understanding that poverty is rooted in broader social, economic, and political structures rather than individual failings.

Restrictive Covenants

Legal agreements in property deeds that prohibited the sale of homes to certain racial or ethnic groups.

Redlining

The discriminatory practice of denying services (especially financial services) to residents of certain areas based on their race or ethnicity.

Blockbusting

The practice of persuading homeowners to sell quickly and cheaply by creating fear that minority groups are moving into their neighborhood.

White flight

The large-scale migration of white people from racially mixed urban areas to more homogeneous suburban areas.

Racial Steering

The practice of directing prospective homebuyers to particular neighborhoods based on their race.

"Discrimination with a smile"

Subtle or covert forms of discrimination that are harder to detect and prove than overt discrimination.

Industrial City/Metropolis

Urban areas characterized by large-scale manufacturing and industrial production.

Deindustrialization

The decline of industrial activity in a country or region, often accompanied by loss of manufacturing jobs.

Growth Machine Politics

A theory suggesting that urban politics and development are driven by coalitions of elites seeking to promote economic growth.

Globalization

The increasing interconnectedness and interdependence of world economies, cultures, and populations.

Operation Bootstrap (Puerto Ricans)

An economic development initiative in Puerto Rico aimed at industrializing the island and improving living standards.