SOCI 353

Understanding Economic Inequality

• To analyze economic inequality, it is essential to define various measures commonly used to compare individuals and groups regarding economic affluence.

Social Class Categorization

• Society can be generally categorized into three social classes:

  Upper Class

  • Can be subdivided into:

    • Upper Upper Class: Wealth comes from inheritance, significant generational wealth.

    • Lower Upper Class: Wealth is often recent, with individuals having greater income but potentially less intergenerational wealth.

  • Disproportionately holds a substantial portion of income and wealth.

  • Characterized by spending patterns on arts, science, and education.

  • Invest more time with children, which influences upward mobility.

  Middle Class

  • Consists of individuals with moderate income levels, often striving for stability and progression.

  Lower Class

  • Comprises individuals particularly vulnerable to economic changes and crises.

  • Often referred to as:

    • Working Class: Engaged in lower-wage jobs, facing more economic instability.

    • Lower Middle Class: Also categorized as working class; lack substantial savings, making them more susceptible to economic downturns.

  • They typically have lower levels of educational attainment and cultural capital.

Vulnerability of the Lower Class

• The lower class is significantly impacted by:

  • Economic crises and political instability.

  • Limited access to resources and opportunities that facilitate higher education.

  • First-generation college students are less likely to pursue higher education due to economic constraints.

Economic Measures

• Income: Refers to earnings from employment or self-employment.

• Wealth: Accumulated resources from previous generations, considered potential marketable assets minus debts.

• Poverty Threshold: Varies by country and is contextually significant; in the U.S., approximately 38 million live below the threshold of $28,000 (as of 2021).

Contextual Understanding of Economic Conditions

• Poverty thresholds differ globally and can vary within the same country.

• Understanding the economic landscape requires careful analysis of statistics and context; policymakers often lack precise data for effective social measures.

The Paradox of Wealth vs. Health

• Investigating the relationship between gross national income and life expectancy reveals:

  • Wealthier countries (e.g., Norway, USA) do not significantly leverage improved life expectancies compared to countries with lower income.

  • There is no consistent relationship between wealth and health outcomes on a national scale.

• Within societies, however, remarkable disparities exist in health outcomes correlated with socioeconomic status.

Importance of Measuring Inequality

• Economic ideals often reference perfect equality, which is contextually unrealistic.

• Inequality has social consequences, with historical perspectives indicating it as divisive and corrosive to social cohesion.

• It's essential to evaluate societies with significant income inequality, as they often suffer from systemic social issues that impact overall welfare.