Soc1005 Class, Inequality and Social Mobility Study Notes

Class Structure and Inequality

Overview of Class Positions in Capitalism

  • Bourgeoisie

    • Definition: Capitalist class which owns the means of production.

    • Key Characteristics:

      • Ownership of means of production

      • Control over money capital (ability to invest)

      • Full authority over labor power

      • High price-setting ability (dominant market position)

  • Proletariat

    • Definition: Working class who does not own the means of production.

    • Key Characteristics:

      • Excluded from ownership and control

      • Lacks authority

      • No ability to set prices

  • Petty Bourgeoisie

    • Definition: Small employers who own some capital.

    • Key Characteristics:

      • Owns means of production

      • Limited authority due to few employees

      • In a highly competitive market

  • Contradictory Class Locations

    • Includes positions such as small employers and managers, characterized by mixed attributes.

    • Small employers own and control to some extent but have limited authority and face market competition.

    • Managers have delegated authority but no ownership stake.

Class Income Sources and Wealth Concentration

Income Generation per Class Position

  • Bourgeoisie (Capitalist)

    • Primary Income Source: Profit from exploitation

    • Key Assets: Money capital and means of production

  • Large Landlords

    • Primary Income Source: Rent from land/real estate

    • Note: If they employ property staff, they align more closely with the Bourgeoisie.

  • Managers

    • Primary Income Source: Salary/Wage

    • Secondary Source: Stock options/profit sharing

  • Semi-autonomous Wage Earners

    • Primary Income Source: Salary/Wage based on skills

  • Small Employers/Petite Bourgeoisie

    • Income Source: Self-employment and small profits from labor

  • Proletariat

    • Primary Income Source: Wage from labor power

Income Inequality Data

  • Income Distribution by Race/Ethnicity (2019):

    • Black and Latinx workers underrepresented in professional occupations.

    • Statistical Representation:

      • Total workforce: White (61.4%), Black (12.8%), Latinx (17.4%), AAPI (7.4%)

      • Occupation Breakdown:

      • Management: White (70.5%), Black (10.0%), Latinx (9.8%), AAPI (8.9%)

      • Professional: White (72.5%), Black (8.9%), Latinx (10.8%), AAPI (7.1%)

Wealth Concentration Among Classes

  • Top 1% National Income Share

    • Graph shows gradual increase in wealth concentration to over 13-20% from 1970s to present.

    • Top 3 individuals account for as much wealth as the bottom half of Americans.

      • Warren Buffett: $81B

      • Bill Gates: $106B

      • Jeff Bezos: $114B

Changes in Wealth Over Time

  • Wealth concentration has significantly increased since the 1980s.

  • Tax contributions by top earners vs. their wealth share (1950-2018):

    • The top 0.01% pays a decreasing share of taxes while owning a larger share of wealth.

Intergenerational Income Mobility

Trends in Social Mobility

  • Generational Earnings Elasticity:

    • Typically indicates lower mobility for poorer families.

    • Countries with high elasticity see a stronger correlation between a parent's income and child's income.

  • Recent Trends:

    • Percentage of children who earn more than their parents has declined drastically since 1940s - from nearly 92% to below 50%.

Geography of Upward Mobility

  • Statistics illustrate disparities in upward mobility across U.S. metro areas.

    • For example, San Jose (12.9% chance), Charlotte (4.4%).

Education and Income Mobility
The Role of Education

  • College education mitigates class differences and levels the playing field.

    • Statistics show that education level correlates with better income and employment opportunities.

Cost of Education

  • Average costs for public universities have more than doubled since 1971, from $8,730 to $21,370.

  • Private nonprofit universities rose from $18,140 to $48,510.

Implications of Wealth and Class Structure

  • Wealth distribution reveals significant economic inequalities.

  • Ethical concerns surrounding the lack of social mobility, particularly for disadvantaged racial groups, emphasize the need for policy intervention.