Chapter 2 Poverty and Wealth

Economic Inequality in the United States Social stratification: the system by which society ranks categories of people in a hierarchy Stratification produces social classes categories of people who have similar access to resources and opportunities © 2013 Pearson Education, Inc. All rights reserved.

© 2013 Pearson Education, Inc. All rights reserved.

© 2013 Pearson Education, Inc. All rights reserved.

Economic Inequality in the United States Any discussion of problems such as poverty must include income and wealth Taxation is a common device used by the government to reduce economic inequality © 2013 Pearson Education, Inc. All rights reserved.

Economic Inequality in the United States Income Salary or wages from jobs plus earnings from investments or any other source Wealth The value of all the economic assets owned by a person or family minus any debts. © 2013 Pearson Education, Inc. All rights reserved.

Economic Inequality in the United States The wealthiest 5% of families in the U.S. own 60% of all wealth. About half of all families in the U.S. have no wealth at all. Government attempts to reduce economic inequality through progressive taxation © 2013 Pearson Education, Inc. All rights reserved.

© 2013 Pearson Education, Inc. All rights reserved.

© 2013 Pearson Education, Inc. All rights reserved.

© 2013 Pearson Education, Inc. All rights reserved.

The Rich and the Poor: A Social Profile “The Rich”: those families who fall within the top 10% of income distribution. “Poverty line”: Standard set by the U.S. government for counting the poor Level of annual income below which a person or family is defined as poor © 2013 Pearson Education, Inc. All rights reserved.

The Rich and the Poor: A Social Profile Entitled to government assistance The “poverty gap”: Difference between the official poverty line & actual income of the typical poor household © 2013 Pearson Education, Inc. All rights reserved.

© 2013 Pearson Education, Inc. All rights reserved.

© 2013 Pearson Education, Inc. All rights reserved.

The Poor: A Closer Look Profile of the U.S. poor Age: at greatest risk are children Race: African Americans and Hispanics Gender: women Family Patterns: single mothers Region: the South and the West © 2013 Pearson Education, Inc. All rights reserved.

© 2013 Pearson Education, Inc. All rights reserved.

Working vs. Non-Working Poor 18% of the heads of poor families work full time Remain below poverty line Non-Working Poor May have bad health and/or Lack skills or self-confidence © 2013 Pearson Education, Inc. All rights reserved.

The Underclass Poor people who live in areas with high concentrations of poverty Limited opportunities Persistent poverty versus temporary poverty © 2013 Pearson Education, Inc. All rights reserved.

Problems Linked to Poverty Poor health The link between poverty and health is evident from birth to old age The infant mortality among the poor is twice the national average Death comes earlier to the poor; more likely to die from infectious diseases and violence © 2013 Pearson Education, Inc. All rights reserved.

Problems Linked to Poverty Substandard Housing or Homelessness About 500,000 people are homeless in the U.S. on a given night Up to 3.5 million people are homeless at some point during the year Low income & a decrease in available low-income housing leads to homelessness © 2013 Pearson Education, Inc. All rights reserved.

Social Problems Linked to Poverty Limited schooling Poor children are less likely than rich children to complete high school Fewer poor children enter college; have less chance of completing an advanced degree Tracking - poor children seen as less able © 2013 Pearson Education, Inc. All rights reserved.

Social Problems Linked to Poverty Crime and Punishment Due to street crime focus, the poor are more likely to face arrest, trial, conviction, & prison The poor depend more on public defenders and court-appointed attorneys Most of whom are underpaid and overworked © 2013 Pearson Education, Inc. All rights reserved.

Social Problems Linked to Poverty Political Alienation In the 2008 election, 80% of people earning $100,000 or more voted As compared with less than half of those earning $10,000 or less. © 2013 Pearson Education, Inc. All rights reserved.

Responding to Poverty: The Welfare System Social welfare program: An organized effort by government, private organizations, or individuals To assist needy people defined as worthy of assistance © 2013 Pearson Education, Inc. All rights reserved.

Responding to Poverty: The Welfare System Large government-run welfare programs: They benefit people or activities that are defined as worthy. They benefit most people (the elderly, veterans, students, and farmers) They do not significantly change income disparity. © 2013 Pearson Education, Inc. All rights reserved.

Brief History of Welfare The Colonial era (the 1600s and 1700s) The earlier Industrial era (the 19th century When attitudes toward the poor became more negative) The 20th Century Soaring immigration and the 1929 Great Depression, and Roosevelt’s “New Deal.” © 2013 Pearson Education, Inc. All rights reserved.

Recent Welfare Reform Changes in the welfare system Began when President Clinton pledged in 1992 to “end welfare as we know it.” The result was the Welfare Reform Act of 1996 The public remains divided over whether people deserve help © 2013 Pearson Education, Inc. All rights reserved.

Welfare Reform Act of 1996 Replaced federal AFDC program with a new state related program – Temporary Assistance for Needy Families (TANF). New rules require able-bodied people receiving benefits to find a job Or enroll for job retraining within two years. © 2013 Pearson Education, Inc. All rights reserved.

Structural Functional Analysis: Some Poverty is Inevitable Social pathology theories Focus on personal deficiency Social disorganization theory Focuses idea of too much change © 2013 Pearson Education, Inc. All rights reserved.

Structural Functional Analysis: Some Poverty is Inevitable Recent functional theory Davis and Moore – inequality actually helps society function efficiently Herbert Gans – poverty exists because many people benefit from it © 2013 Pearson Education, Inc. All rights reserved.

Symbolic Interaction Analysis: Defining the Problem Highlights the social construction of problems and solutions Explores the meanings that people attach to those who are poor How views lead to particular understandings of who or what is responsible for poverty © 2013 Pearson Education, Inc. All rights reserved.

Symbolic Interaction Analysis: Who’s to Blame? Based on research by William Ryan Pick a social problem Decide how people who suffer from the problem differ from everyone else Define these differences as the cause of the problem Respond to the problem by trying to change the victims, not the larger society © 2013 Pearson Education, Inc. All rights reserved.

Social-Conflict Analysis: Poverty Can Be Eliminated Marxist Theory: Poverty and Capitalism Poverty Involves More than Money: Cultural Capital Multicultural Theory: Poverty, Race, and Ethnicity Feminist Theory: Poverty and Patriarchy Intersection Theory: Multiple Disadvantage © 2013 Pearson Education, Inc. All rights reserved.

Feminist Analysis: Poverty and Patriarchy The Feminization of Poverty Intersection Theory: Multiple Disadvantages Investigation of the interplay of race, class, and gender Often resulting in multiple dimensions of disadvantage © 2013 Pearson Education, Inc. All rights reserved.

Politics and Poverty: Constructing Problems and Defining Solutions Conservatives: Personal Responsibility Focus on personal responsibility, stressing the importance of self-reliance Liberals: Societal Responsibility View poverty as more structural than it is individual; thus they look for societal solutions © 2013 Pearson Education, Inc. All rights reserved.

Politics and Poverty: Constructing Problems and Defining Solutions Radicals: Change the System Poverty is inherent in capitalist society, They dismiss social welfare programs and tax plans advocated by liberals Little more than a Band-Aid applied to the body of a person with an incurable disease Replace capitalism with more humane system © 2013 Pearson Education, Inc. All rights reserved.