New York Institute of Technology 23

Property and Income

• Definition of Property: Includes tangible items like jewelry, animals, furniture, cars, and bank accounts—essentially all the belongings of an individual or family.

• Valuation: The total value derived from these possessions constitutes what one owns. This is a measure of property.

• Income: Refers to money received or the flow of money into a household. It can come from various sources, not just wages or salaries but also include alimony and winnings from gambling.

Understanding Income and Wealth

• Average Family Income: In the United States, it’s approximately $61,000.

• Distinction between Income and Wealth: Income is not equivalent to wealth; high income does not guarantee high property value.

  • Example: A person with a high income may overspend and eventually have little property. Conversely, a farmer with high property value can have low income due to poor harvests.

Wealth Distribution in the U.S.

• Wealth is disproportionately distributed; the wealthiest 20% of U.S. residents earn about 50% of the nation's income, while the top 1% has more wealth than the bottom 90% combined.

Power and Social Class

• Power Definition: The ability to achieve one's desires even in the face of resistance.

• Power Elite Theory:

  • Proposed by sociologist C. Wright Mills, it suggests that a small group (the power elite) control the majority of wealth, privilege, and access to decision-making.

  • This group influences economy, government, and military, often exhibiting consensus and similar viewpoints, thus maintaining their power across sectors.

Prestige in Occupations

• Definition of Prestige: The respect and admiration accorded to certain jobs.

• High Prestige Jobs: Include positions like neurosurgeons, lawyers, judges, and college presidents. Tasks associated with these roles tend to require higher education, offer greater independence, and pay more.

• Low Prestige Jobs: Typically include blue-collar work and occupations like janitors, wait staff, which are viewed as having lower social status.

Socioeconomic Status Inconsistency

• Status Inconsistency: When individuals rank differently on wealth, power, and prestige.

  • Example: College professors may have high prestige and power yet possess low wealth, leading to frustrations about their economic status compared to their education level.

• Political Orientation: Individuals may align politically with the status where they have their highest ranking.

Social Class and Education

• Classes Defined by Eric Wright:

  • Capitalists: Large enterprise owners (e.g., wealthy businessmen).

  • Petty Bourgeoisie: Small business owners.

  • Managers: Hold authority without owning the business.

  • Workers: Sell their labor.

• Gilbert and Kall's Model: Proposes six social classes in American society.

  • Capitalist Class: Top 1%, income over $1,000,000.

  • Upper Middle Class: Next 15%, professionals needing advanced degrees.

  • Lower Middle Class: 34% of the population, skilled blue-collar workers.

  • Working Class: 30% of the population, generally low-paid laborers.

  • Working Poor: 16% of the population, minimal skills.

  • Underclass: Bottom 4%, often unemployed.

Social Class Impacts on Health and Family Life

• Health Disparities: Lower classes face higher sickness and mortality rates, often due to unequal access to healthcare.

• Example Case: Terry Takewell, diabetic man denied hospital treatment due to unpaid bills, highlighting healthcare as a commodity in America.

• Family Stressors: Marriages in lower social classes are more likely to end in divorce due to financial pressures.

  • Child-rearing practices also vary, with higher classes encouraging creativity and lower classes enforcing conformity.

Education and Poverty

• Higher education levels correlate with lower poverty rates. Those with advanced degrees have better job prospects.

• Feminization of Poverty: Single mothers often face the highest poverty rates, which affects their children’s welfare and future opportunities.

Poverty Line and Demographics

• Current Poverty Line: For a family of four in 2024, set at $31,200.

• Geographic Distribution: Highest poverty rates found in the South and rural areas.

• Racial Disparities: 9% of whites, 21% of Latinos, and 25% of African Americans live in poverty. However, whites constitute 41% of the impoverished population due to their majority.

Social Mobility Types

• Intergenerational Mobility: Changes in social class over generations within a family.

• Structural Mobility: Large societal shifts that impact mobility options across the board.

• Exchange Mobility: When individuals from one class swap places with another, keeping the overall structure stable.

Dynamics of Poverty

• Culture of Poverty: The myth that poor individuals maintain differing values and behaviors.

• Statistical Evidence: Most poverty is temporary; over half experience it for less than a year due to life events.

• Structural Factors: Social structures and discrimination are significant in maintaining poverty cycles rather than purely individual characteristics.

Welfare System and Reforms

• Reform History: 1996’s Personal Responsibility Act led to stricter welfare policies and reduced assistance duration.

• Conflict Theory Perspective: Considers welfare as part of maintaining a reserve labor force, benefiting capitalism while keeping the impoverished controlled.

Horatio Alger Myth

• The belief in equal opportunity for all; criticized as unrealistic when accounting for societal inequalities.