Economic Inequality - Introduction to Sociology Flashcards

Social Stratification and Economic Class

  • Social Stratification: This is defined as a society’s system of ranking categories of people in a hierarchy.

  • Social Classes: These are categories of people who have similar access to resources and opportunities produced by the stratification system.

Defining Economic Inequality: Income vs. Wealth

  • Income: This refers to salary or wages from a job plus earnings from investments and other sources.

  • Wealth: This is the value of all the economic assets owned by a person or family, minus any debts. Wealth includes more than just earned money; it encompasses the value of:

    • Homes

    • Automobiles

    • Stocks

    • Bonds

    • Real estate

    • Businesses

The Racial Wealth Divide and the "Road to Zero Wealth"

  • Projected Demographics: Households of color are projected to reach majority status in the United States by 20432043.

  • Wealth Trajectory: If the racial wealth divide remains unaddressed, the following outcomes are projected:

    • Median Black Household Wealth: On a path to hit 00 by 20532053.

    • Median Latino Household Wealth: Projected to hit 00 twenty years after the Black household median (approximately 20732073).

    • Median White Household Wealth: In contrast, this is projected to climb to $137,000\$137,000 by 20532053.

The Social Profile of the Rich

  • Statistical Threshold: The "rich" are defined as families falling within the top 10%10\% of income distribution.

  • Income Parameters:

    • Minimum income of at least $196,000\$196,000.

    • Average income of $294,000\$294,000.

  • Demographic Characteristics: Those more likely to be wealthy include:

    • Older people

    • Men

    • Married couples

    • Non-Hispanic Whites

  • Family Income Comparisons:

    • 69%69\% of White families earn more than $50,000\$50,000.

    • 44%44\% of African American families earn more than $50,000\$50,000.

    • 45%45\% of Hispanic families earn more than $50,000\$50,000.

The Social Profile of the Poor

  • High-Risk Groups: The demographics at the greatest risk of poverty are:

    • Race: African Americans and Hispanics.

    • Age: Children.

    • Gender: Women.

    • Family Patterns: Single mothers.

    • Region: The South and the West.

The Poverty Line and Poverty Rates

  • The Poverty Line: An income level set by the government for the purpose of counting the poor. It is calculated as roughly 3×3 \times what a family needs to eat a basic, nutritious diet.

  • 2014 Statistics:

    • Total number of people in poverty: 46.746.7 million.

    • Poverty rate: 14.8%14.8\%.

Working Versus Nonworking Poor

  • Working Poor: Approximately 16%16\% of the heads of poor families work full-time yet remain below the poverty line.

    • Note: Full-time work at minimum wage yields an income well below the poverty line for a family of four.

  • Nonworking Poor: 56%56\% of the heads of poor families do not work at all; 28%28\% work part-time.

  • Barriers to Employment:

    • Poor health

    • Lack of skills (impacted by AI and a shifting job market)

    • Lack of jobs

    • Lack of childcare

The Underclass and Persistent Poverty

  • The "Underclass": Poor people who live in areas with high concentrations of poverty and limited opportunities for schooling or work.

  • Hypersegregation: Occurs in both inner cities and rural areas, creating geographic barriers to resources along racial and class lines.

  • Persistent vs. Temporary Poverty: Analysis distinguishes between those who cycle in and out of poverty versus those trapped in a cycle of persistent disadvantage.

Social Problems Linked to Poverty

  • Housing and Homelessness:

    • Increase in substandard housing and a decline in low-rent apartment availability.

    • The housing crisis began in 20072007.

    • Approximately 565,000565,000 people are homeless on any given night; up to 1.61.6 million are homeless at some point during the year.

    • The average monthly income for homeless families is $350\$350.

  • Homelessness by Race and Ethnicity (2023 AHAR Data):

    • White: 75.5%75.5\% of overall population; 49.7%49.7\% of homeless population.

    • Black/African American: 13.6%13.6\% of overall population; 37.3%37.3\% of homeless population.

    • Hispanic/Latin(a)(o)(x): 19.1%19.1\% of overall population; 27.5%27.5\% of homeless population.

    • American Indian/Alaska Native/Indigenous: 1.3%1.3\% of overall population; 3.5%3.5\% of homeless population.

    • Asian/Asian American: 6.3%6.3\% of overall population; 1.8%1.8\% of homeless population.

    • Native Hawaiian or Pacific Islander: 0.3%0.3\% of overall population; 1.6%1.6\% of homeless population.

  • Limited Schooling:

    • Poor children are less likely to complete high school and fewer enter college or complete advanced degrees.

    • Tracking: Academic tracking often defines poor children as "less able," impacting their future opportunities.

  • Crime and Punishment:

    • A focus on "street crime" leads to higher rates of arrest, trial, and conviction for the poor.

    • The poor rely heavily on public defenders or court-appointed attorneys.

    • Conviction increases the difficulty of obtaining subsequent employment, contributing to political alienation and disenfranchisement.

Pathways Toward Eliminating Poverty: Universal Basic Income (UBI)

  • The Alaska Permanent Fund Case Study:

    • Since 19821982, Alaska has provided each citizen an annual check.

    • Financing: A state-owned investment fund financed by oil revenues.

    • Amount: Standard ranges from $1,000\$1,000 (low gas prices) to $2,000\$2,000 (high oil prices) per person.

    • Impact: It has effectively wiped out extreme poverty and has had no negative effect on overall employment. It has observed effects on increased fertility and state politics.

The Social Welfare System

  • Definition: An organized effort by government, private organizations, or individuals to assist needy people defined as "worthy of assistance."

  • Scope: Most of the U.S. population benefits from some form of welfare/subsidies, including mortgage deductions, student loans, and farm subsidies.

  • History:

    • Colonial Era: Limited to acts of personal kindness.

    • Early Industrial Era: Immigration led to negative attitudes toward the poor.

    • Scientific Charity Movement: Early 20th20^{th} Century approach.

    • 1929 Depression: Contextualized poverty as a social problem rather than a personal failing.

    • Roosevelt’s ‘New Deal’: Expanded federal intervention.

    • 1964 War on Poverty: Introduced the concept of the ‘Culture of Poverty’.

Welfare Reform

  • The Welfare Reform Act of 1996 (Personal Responsibility and Work Opportunity Reconciliation Act):

    • Signed by President Clinton to "end welfare as we know it."

    • Replaced the federal Aid to Families with Dependent Children (AFDC) with Temporary Assistance for Needy Families (TANF).

    • Requirements: Able-bodied recipients must find a job or enroll in job retraining/school within 22 years.

Theoretical Perspectives on Poverty

Structural-Functional Analysis

  • Premise: Some poverty is inevitable.

  • Social Pathology Theory: Focuses on personal deficiency and the "culture of poverty" (cultural patterns that encourage poverty as a way of life).

  • The Bell Curve: Views the U.S. as a meritocracy where social standing corresponds to personal ability and effort.

  • Social Disorganization Theory: Attributes poverty to a breakdown in social order caused by rapid social change.

Symbolic Interaction Analysis

  • Premise: Highlights the social construction of problems and the meanings attached to the poor.

  • "Blaming the Victim" (William Ryan): A four-step process:

    1. Pick a social problem.

    2. Decide how people suffering from the problem differ from everyone else.

    3. Define those differences as the cause of the problem.

    4. Respond by trying to change the victims rather than the larger society.

Social-Conflict Analysis

  • Premise: Poverty can be eliminated; it is a product of social structure.

  • Marxist Theory: Links poverty to capitalism. Highlights poverty as involving more than just money, focusing on Cultural Capital.

  • Multicultural Theory: Focuses on the role of race and ethnicity in creating poverty.

Feminist Analysis

  • Patriarchy: A social pattern in which men dominate women.

  • Feminization of Poverty: The high risk of poverty specifically for families headed by single mothers.

  • Intersection Theory: The investigation of the interplay of race, class, and gender, which often results in multiple dimensions of disadvantage.