Economic Inequality and Social Stratification

The lack of economic resources can have direct, physical consequences for people's lives.
Neighborhoods affected by significant flooding generally had:
- Lower median income
- Higher poverty rate
- Higher percentage of households without a vehicle compared to areas with little or no flooding

Social Mobility: Movement of people or groups from one class to another.
Barriers can limit mobility from one generation to the next.
It is often common for it to take 5-6 generations to erase the advantages or disadvantages of one’s family.
Class distinctions can be visualized as fuzzy lines; more accurately represented as a continuum.

Stratification: A structured system of ranking entire groups of people, which perpetuates unequal rewards and life chances in society.
Different Systems of Stratification Include:
- Slavery: A system where individuals are owned by others.
- Caste System: A rigid social structure where individuals are born into a social class that determines their future opportunities.
- Estate (Feudal) System: A hierarchical system prevalent in the Middle Ages where society was structured around land ownership and obligations.

Social mobility is defined as the movement of people or groups from one social position to another.

Graphical data depicts the likelihood of men raised in different income quintiles (e.g., 1st, 2nd, 3rd, etc.) moving up to the top quintile.
- For example:
- Men raised in the bottom fifth end up in the top fifth in 40% of cases in the U.S. versus 30% in Denmark.

Top Wealth Shares:
- A graphical representation decomposition of wealth among the top 1%.
- Significant inequality is depicted, showcasing how the wealthiest individuals control a large portion of resources.
Data Observed (Saez and Zucman, 2014):
- Over the decades, the share of wealth held by the top 1% has fluctuated and is conclusive to growing inequality.

Absolute Poverty: A condition where an individual does not have the financial means to obtain commodities to sustain life.
Relative Poverty: The standard of living compared to economic standards of living within the same surroundings.

Social Class: A group of people who share a similar economic position in society based on wealth and income.
Common categories of social class include:
- Upper Class
- Middle Class
- Working Class
- Lower Class
Distinctions between these classes can often be based on ties to the economy.

Wealth encompasses ownership of durable consumer goods (houses, cars, etc.) and financial assets (stocks, bonds, etc.).
Wealth Distribution Highlights:
- The wealthiest 20% of the U.S. population holds about 80% of the wealth, while the top 1% alone controls about 40%.
- The poorest 40% only control 0.2% of the wealth.
- Bill Gates’ net worth is equivalent to the total worth of the poorest 40% of U.S. households.

Working-class individuals are often underrepresented in media, usually in supporting roles rather than starring roles.
Common portrayals include:
- Immaturity or irresponsibility
- Macho behavior
- Having personal problems or 'odd lifestyles'
Such media representations reinforce negative stereotypes and sometimes depict wealth as inherently evil, while the working class is depicted either as heroic and noble, or something to be feared.

Structural-Functionalist Perspective (S-F) suggests that stratification is necessary as it is found in all contemporary societies.
Functions of inequality include:
- A continuum of skill and reward exists where positions requiring specialized skills necessitate higher rewards, and simpler jobs do not command high pay due to a surplus of available labor.

Questions arise around how we determine what positions are truly important versus those that become important based solely on pay, exacerbating a circular argument.
It raises issues about whether we can assert that lacking skills (e.g., medical or legal professions) holds true in the face of unequal opportunities and access to training.

The Conflict Perspective posits that inequality results from an unequal distribution of power and resources, which is a primary source of conflict and coercion within society.
Introduced by Karl Marx, his class model outlines division into classes based on:
- Ownership of the means of production (land, commercial enterprises, etc.).
- The ability to purchase or control the labor of others (dividing owners from workers).

In The Communist Manifesto (1848), Marx states, "Workers of the world unite, you have nothing to lose but your chains!" emphasizing that crises are inherent to capitalism.

Income distribution illustrates a long-term evolution in the U.S. from 1774, 1860, and 2010, emphasizing growing inequality among the top income groups.

In 2006:
- Non-Hispanic Whites had a poverty rate of 8.3%
- Asian Americans at 11.1%
- Nonwhite Latino/as at 21.8%
- African Americans at 24.9%
Poverty rates by family structure:
- Families headed by single mothers at 28.7%
- Single fathers at 13.0%
- Married couple families at 5.1%
Education plays a critical role; for instance, 70% of young single mothers without a high school diploma are poor.
Notably, children under 18, constituting 25% of the U.S. population, represent 34.9% of the poor.

The near-poor define those earning just above the poverty line, often struggling despite being eligible for certain benefits.
Unexpected emergencies can deplete savings, leading the Census Bureau to experiment with new poverty line calculations.

In 2004, the top 5% of U.S. families had an average annual income of $173,640, compared to $24,780 for the bottom 20%.
The U.S. exhibits the highest income inequality among industrialized nations.

A sustained pool of low-wage labor ensures economic functionality while also supplying a demographic for military service.
- By 2006, 34% of U.S. military personnel killed in Iraq came from the poorest quarter of American families.
- Visible poverty serves as an illustration of competitive individualism and societal values.

Colonization has historically shaped economic roles across continents, establishing a pattern of dependency where colonies supplied raw materials to colonial powers.
- Wealthy countries exert financial pressure through trade practices and influence on market prices for goods.

Multinational corporations often prioritize corporate goals over national interests, potentially exploiting local labor markets.
- This can lead to ongoing inequalities in wages and working conditions compared to those in the U.S., especially in terms of environmental regulations and worker rights.