Social Class The Structure of Inequality Chapter 8

Social Class: The Structure of Inequality Chapter 8

Social Inequality The unequal distribution of: Wealth Power Prestige Due to meritocracy or social stratification

Social Stratification Social hierarchy Division of society into groups Upper Middle Lower

Social Stratification Criteria for Stratification: Race Class Gender Age Whatever is socially important.

4 Principles of Social Stratification 1. A characteristic of society 2. Persists over generations 3. All societies stratify their members 4. Maintained through beliefs (Ideology) Divine right of kings White man’s burden Work hard and you will achieve

3 Major Systems of Stratification 1. Slavery 2. Caste system 3. Social class

Social Stratification

1. Slavery Most extreme form of stratification People are property Can be bought and sold Provide labor

2. Caste system: Status determined by heredity (birth) Religious Economic Political Physical characteristics Cannot be changed ▪ Apartheid in South Africa (1948 -1991)

Apartheid Colour Classification 4 official groups: Black White Indian Coloured

Caste System: India

3. Social Class http: //www. youtube. com/watch? v=Tf 2 d. Sc. Tlv. OQ System based on access to resources: Wealth Property Power Prestige Sociologists refer to it as socioeconomic status (or SES).

Social Class

Social Classes in the U. S. Upper class: Wealthiest people in U. S. About 1% of the U. S. population Most of the wealth of the country How the very rich live http: //www. youtube. com/watch? v=f. DPBx. N 9 Ez 1 o&feature=related Playhouses http: //www. youtube. com/watch? v=fe. Apz. G 9 FUu. Y&feature=related

How Social Class Matters

CEO-TO-WORKER COMPENSATION RATIO 1965 -2012 http: //money. cnn. com/magazines/fortune 500/2012/ceo-pay-ratios/ RATIO OF CEO COMPENSATION TO EMPLOYEE PAY

Top 10 of Forbes 400 Wealthiest in 2012

Forbes: The World’s Billionaires 2013 http: //www. forbes. com/billionaires/list/#page: 1_sort: 0_direction: asc_search: _filter: All%20 industries_filter: All%20 countries_filter: All%20 states http: //www. forbes. com/pictures/eimh 45 igdg/1 -dustin-moskovitz/ Youngest Billionaires 2013 http: //www. nytimes. com/national/class/ ****SOCIAL CLASS MATTERS

Upper-middle class Professionals and Managers Executives Managers Well-educated ▪ College or postgraduate degrees

Population in Upper, Middle, & Lower Classes

Middle class “White collar” workers Broad range of incomes Lost Decade of Middle Class http: //www. pewsocialtrends. org/2012/08/22/videolost-decade-of-the-middle-class/

Working (lower-middle) Class “Blue-collar” or service industry workers Less likely to have college degrees

The Lower Class “Working poor” ▪ Unemployed Typically have lower levels of literacy Minimum wages by state http: //www. ncsl. org/research/labor-and-employment/state-minimum-wage- chart. aspx Income for household with 2 people working 40 hours/week at minimum wage jobs. $2494. 00/month $29, 928/year

States with Highest Poverty Rate http: //www. huffingtonpost. com/2011/10/21/p overty-rises-despite-end-ofrecession_n_1023946. html

What are poverty thresholds? The original version of the federal poverty measure, which was developed by Mollie Orshansky of the Social Security Administration in the 1960 s. Updated each year by the Census Bureau, the thresholds are used mainly for statistical purposes.

What are poverty guidelines? The other version of federal poverty measure. Issued every year, by the U. S. Department of Health and Human Services (DHHS) Guidelines are a simplification of the poverty thresholds Created for administrative use, such as determining financial eligibility for certain federal programs.

2013 POVERTY GUIDELINES FOR THE 48 CONTIGUOUS STATESAND THE DISTRICT OF COLUMBIA Persons in Poverty guideline family/household For families/households with more than 8 persons, add $4, 020 for each additional person. 1 2 3 4 5 6 7 8 $11, 490 15, 510 19, 530 23, 550 27, 570 31, 590 35, 610 39, 630

2013 Federal Poverty Guidelines http: //www. familiesusa. org/resources/tools-for-advocates/guides/federal-povertyguidelines. html

Poverty

Older Adults and Poverty Social Security lifted roughly 14. 5 million seniors above the poverty line. Without SS, the number of people ages 65+ in poverty would have increased five-fold

THE ECONOMY: HISTORICAL Social institution: Organizes society’s q Production, q Distribution, and q Consumption of goods and services

THE ECONOMY Goods: Commodities (products) Services: Activities that benefit people

Economy: Basic Issues Production: Which goods and services Consumer goods: ▪ Food ▪ Shelter ▪ Clothing Producer goods: Resources to create goods ▪ Cotton ▪ Steel ▪ Water

Services Education Communication Transportation Health

Distribution Transportation Packaging Storage Advertising

Consumption Purchase and Use of goods & services by households Major determinants Consumption Income Price

C 0 nsumption HENRY FORD: It is customers, not employers, who really pay workers’ wages; employers merely look after the cash. Economies do best when workers can afford to buy the goods that they make.

Consumer Spending Drives 70% of the U. S. economy We are all consumers Things we buy every week: Groceries, gasoline, clothing Create the demand that keeps companies making products

Two General Economic Models Capitalism Socialism No nation completely one or the other

Economic Systems Capitalism 1. Private ownership of means of production 2. Production based on profit 3. Competition 4. Socialism Self-interest Limited government influence Public ownership of the means of production 2. Production based on human needs 3. Equality of all people 4. 5. 1. Democracy 5. Common good 41

U. S. considered a Capitalist system Most businesses are privately owned Government: Large role in the economy Public Ownership: Schools Highways Parks Museums

U. S. Government Sets minimum wage levels Workplace safety standards Provides farm price supports Negotiates trade policies

Federal Subsidies for Food Production

Business Incentives http: //www. nytimes. com/interactive/2012/12/ 01/us/government-incentives. html Average American Families Pays $6 K a Year in Big Business Subsidies http: //billmoyers. com/2013/09/24/averageamerican-family-pays-6 k-a-year-in-subsidiesto-big-business/

Theories of Social Class: Conflict Theory Karl Marx: Two main social classes in capitalist societies: 1. Capitalists (or bourgeoisie) Own the means of production 2. Workers (or proletariat) Sell their labor for wages

Theories of Social Class: Conflict Max Weber: Social Class has 3 components: 1. Class (Wealth: money, investments) 2. Status (Prestige) 3. Party (Power)

Social Prestige of Selected Occupations in U. S.

Social Prestige of Selected Occupations in U. S. White Collar Score Blue Collar

Symbolic Interactionist Perspective Erving Goffman: Social class indicated by: Clothing Speech Gestures Possessions Friends Activities

Structural Functionalism Motivates people to achieve Allocates people into jobs Poor provide jobs for others Social service

Theory in Everyday Life The Real World: An Introduction to Sociology, 2 nd Edition Copyright © 2010 W. W. Norton & Company