Wealth and Poverty Michael Itagaki Sociology 102, Social Problems

Problem in Sociological Perspective Four Economic Problems Facing the U.S.  Decline in purchasing power

Figure 7.1 (p. 210) Average Hourly Earnings, in Current and Constant Dollars. Source: By the author, based on Statistical Abstract 1999: Table 698; 2003: Table 636.

Problem in Sociological Perspective Four Economic Problems Facing the U.S.  Decline in purchasing power  Taxes  Savings

Figure 7.2 (p. 211) How Much do Americans Save? Source: By the author, based on American Savings Education Council, 1999: Statistical Abstract 1990: Table 700; 1995: Table 710; 2003: Table 668.

Problem in Sociological Perspective Four Economic Problems Facing the U.S.  Decline in purchasing power  Taxes  Savings  National Debt

Problem in Sociological Perspective Three types of poverty  Biological  Relative  Official

Scope of the Problem Social Inequality Distribution of Wealth and Income  How income inequality has increased

Figure 7.3 (p. 213) How is the Income of the United States Distributed? Source: By the author, based on Statistical Abstract of the United States 2003: Table 688.

Scope of the Problem Social Inequality Distribution of Wealth and Income  How income inequality has increased  Distribution of wealth

Figure 7.4 (p. 213) How the Business Assets of the United States Are Distributed. Note: The 10 percent of richest families also own 90 percent of corporate bonds. For all corporate stock, the share of the richest 10 percent dips just a bit: They hold only 85 percent of this form of wealth. They also own 88 percent of all trust funds, 62 percent of all money market accounts, and 57 percent of all pension accounts. Source: Beeghley 2004.

Scope of the Problem How much is a billion dollars?  1 cent every second  60 cents/minute, $36/hour, $864/day  If lived since 0 BC… still take another 1,000 years to save $1 billion

Scope of the Problem So what are some consequences of this high concentration of wealth?  Few making decisions for many = power  Cheaper labor= cheaper costs & more profit = impact job market  Profit motive for few, affects livelihood for many

Scope of the Problem Who are the poor?  Race-ethnicity, education, sex Race  10% Whites, Asian Americans  22% Latinos, 24% Blacks  But most poor people are white…

Scope of the Problem: Poverty Lack of economic resources impacts:  Housing  Health  Education  Employment  Income

Scope of the Problem: Poverty Who are the poor: Education  3% of college graduates end up poor  20% high school dropouts are poor  ex. 80% of Blacks who:  Didn’t finish high school  Didn’t get married before having first child  Had first child before age 20  …ended up poor

Scope of the Problem: Poverty Education (recap)  Chances of being poor decrease as amount of education increases  Similar relationship w/physical health (stress) Feminization of poverty  Most poor families headed by women  Major causes: divorce, lower wages, and…

Scope of the Problem: Poverty Feminization of poverty  Most poor families headed by women  Major causes: births to unwed mothers Figure How Many Births to Single Mothers? Page 205

It Was a Wonderful Life Discussion