Social and Economic Inequalities in the USA

Social and Economic Inequalities An inequality is an example of where people are NOT EQUAL SOCIAL INEQUALITY is about how people are not equal in SOCIETY – in regards to housing, education etc ECONOMIC INEQUALITY is more to do with how people are not equal FINANCIALLY The two are very much linked - for example with some people in the US living in fancy houses and others in poor slums, but it is perhaps the result of economic inequalities – i.e. the amount of money a person makes affects their ability to live in a nice home/area.

Social and Economic Inequality in the USA To help us remember our American inequalities use the following mnemonic: C H I E Crime Housing Income Health Education Employment

In the exam… Questions in the exam will either ask you about: The extent of social and economic inequality Government responses to social and economic inequality

Possible Essays… Extent of social and Economic Inequalities Government responses to Social and Economic Inequalities To what extent do individuals or groups in a world power you have studied experience social and economic inequality. To what extent have minority groups made social and economic progress in the world power you have studied? Analyse policies implemented by government to solve a socio-economic issue in a world power you have studied. Evaluate the effectiveness of a world power you have studied in tackling social and economic issues. Analyse the government policies to tackle social and economic inequalities in a world power you have studied. Evaluate the effectiveness of government policies to reduce social and economic inequalities in the world power you have studied.

Income and Employment Inequalities (poverty)

Background Knowledge The United States is a capitalist country. The USA is a country with a strong capitalist ethic and favours minimal state intervention in people’s lives. It is individualist rather than collectivist in nature - people are expected to fend for themselves! The opportunity to become rich is part of the American Dream. However, for every ‘winner’ there are many more ‘losers’. In terms of income, it seems that minorities suffer inequality – especially African Americans and Hispanic Americans.

Unemployment At the end of 2014, the USA’s national unemployment rate was 5.5%. In comparison by October 2017, the national unemployment rate was 4.1%. The latest figures for September 2018 show the national unemployment rate is 3.7%. Today, around 3.9% of white Americans and 3.3% of Asian Americans are unemployed compared to 6.5% of African Americans. 4.5% of Hispanics are currently unemployed (Oct 2018) which shows that minorities are more likely to be unemployed. Analysis - Blacks are almost twice as likely to be unemployed as whites. In 2014, the unemployment rate for African Americans was as high as 10.5%. Source - http://www.bls.gov/web/empsit/cpsee_e16.htm

Unemployment Figures Oct 2018 Further analysis: It can clearly be seen that even as overall unemployment in the USA falls across all groups, ethnic minority groups are still far more likely to be unemployed. Unemployment drops but Americans still aren't happy

Income Compared to other developed countries, the USA is a very unequal society. According to the UN , the Gini coefficient (which gives a measure of wealth or income inequality within a country) for the USA is 40.8 and rising (UK 36). What this means is that the richest people in the USA have, on average, a far greater share of the total income or wealth than the poorest people. Ethnicity is crucial when looking at social and economic inequalities in the USA. White and Asian Americans are most likely to have higher incomes and be employed. African Americans and Hispanic Americans are least likely to have high incomes and be employed.

Income In 2016, among the ethnic groups, Asian households had the highest average income which stood at $81,431. The average income for White households was $65,041, and it was $39,490 for Black households. For Hispanic households the average income was $47,675. Analysis: In other words, on average, Asian Americans earn more than twice as much as Black Americans. Also, on average Black Americans earn about 58% of what white Americans earn. Clearly, there is extreme economic inequality for Black and Hispanic Americans compared to white and Asian Americans.

Poverty The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $20,160 in 2016. This is the official measurement of poverty used by the Federal Government, and the measure used for most poverty-based data presented on State Health Facts.

Poverty So from the table on the last slide, in 2012… 15% of Americans lived in poverty 27.2% of African Americans in poverty 25.6% of Hispanic Americans in poverty 9.7% of non-Hispanic whites in poverty Analysis: So, in 2012 blacks were almost 3 times as likely to be living in poverty compared to whites.

Poverty In 2016 (the most recent figures) show that… 12.7% of Americans lived in poverty 22% of African Americans in poverty 19.4% of Hispanic Americans in poverty 8.8% of non-Hispanic whites in poverty Analysis: So in 2016 blacks were still 3 times as likely to be living in poverty compared to whites.

Poverty The National Centre on Poverty reported that 13 million American children were living in families with incomes below the official federal level. Black and Hispanic Americans are more likely to be living in poverty therefore experience more social and economic inequality compared to Asian and White Americans. What poverty in America looks like Struggling to make ends meet: Hidden America

African-American Poverty Reasons for the high levels of poverty amongst ethnic groups differ. Black Americans have suffered systematic and long-term discrimination. Many have also fallen victim to the poverty cycle. The level of black poverty has steadily decreased over the years. However, black Americans do still experience greater inequality than white Americans or any other ethnic group. This has resulted in a Black “underclass” living in ghettos where they find it more difficult to get a proper education, employment, health and even justice in the courts. This has led to a rise in crime and substance abuse. African Americans are the biggest group reliant on welfare.

Black Middle Class However, there has been a rise in a black middle class as there has been better access to education in some areas. Today many black Americans are moving into better homes and housing barriers are gradually disappearing - no more ‘white flight’. Many have integrated into white neighbourhoods and there has also been a development of black middle class neighbourhoods. For example, Atlanta and Los Angeles have thriving black middle class areas.

Case Study: Black Middle Class and “Black Flight” The Queens district of New York is home to black middle class families whose average income was higher than that of white families in the same area. This was largely due to the growth of two-parent families. Today middle-class black Americans are well established as a separate community and do not have to live side by side with lower income black Americans - those that are left behind in the ghetto, left to deal with drugs, violence and crime. The rising number of affluent African Americans leaving inner city areas for suburbs has been dubbed the “Black Flight”.

Hispanic Poverty The reasons for poverty amongst Hispanics are different. Mainly due to immigration from South and Central America. Poverty levels are not equally distributed amongst the Hispanic groups. Mexicans and Puerto Ricans have higher poverty levels than Cubans. Mexicans and Puerto Ricans represent the economic migrants who are in search of the American Dream, whereas Cubans have a strong tradition of being successful in business.

Video Clips… https://www.youtube.com/watch?v=wNNBjqdKZRQ – wealth inequality stats https://www.youtube.com/watch?v=nD_DSYr7OyQ – the poorest city in America https://www.youtube.com/watch?v=FGgmN_Asprg – “Black Flight” in America

Park Avenue: Money, Power and the American Dream Watch the documentary on the two different Park Avenues in New York City and take notes on the following: The differences between the two Park Avenues The impact of poverty and low income on citizens What is being done to combat poverty https://www.youtube.com/watch?v=6niWzomA_So https://www.youtube.com/watch?v=6niWzomA_So

Examples of rich and poor neighbourhoods in the USA? Compton in Los Angeles, California (poor) Harlem in New York City, New York (poor) Newport Beach, Orange County, California (rich) The Hamptons, Long Island, NY (rich) Upper East Side of Manhattan, NYC, NY (rich) http://www.blackenterprise.com/news/the-10-most-dangerous-neighborhoods-america/

Educational Inequalities

Education in the USA Educational inequalities are largely based on income and this again means that minorities are worst affected. There is a huge problem in education in the USA whereby in many cases, schools in more affluent areas gain more funding than schools in poorer areas. This is sometimes called a “Funding Gap”. This means that young people from poorer areas do not get as good an education, and this affects Black and Hispanic families the most. Most educational funding comes from state and local governments with only 10% of funding coming from the federal government. A 2004 report found that there were funding gaps in 36 of the 50 states. This means that most states spend thousands of dollars more on pupils in richer areas compared to poorer areas. https://www.usnews.com/news/best-states/articles/2018-02-27/in-most-states-poorest-school-districts-get-less-funding – the funding Gap

The Funding Gap KNOWLEDGE Read the article on the blog about the funding gap in American schools. Take down statistics which show: How much funding schools receive to teach each pupil The funding for schools which serve the most pupils of colour. The Education Trust, Funding Gaps Analysis Report, February 2018

86.6% of White Americans graduated from high school in 2013 88.7% of Asian American students graduated from high school in 2013 Although graduation rates for all ethnic groups have risen in recent years, there is still a clear gap between those who are struggling and those who perform well. KNOWLEDGE

Causes of educational inequality Statistics show that Whites and Asians consistently outperform Hispanics and Blacks in terms of educational attainment. Why? Impact of poor neighbourhoods A significant number of Blacks and Hispanics live in poor areas. These areas are characterised by poor housing, unemployment, dysfunctional families, crime and drugs. Analysis: Children brought up in these areas are less likely to value education or go to school hence educational attainment levels are low. This becomes a CYCLE. KNOWLEDGE

2. ‘Poor Schools’ attended by many B+H have: Problems attracting and retaining suitably qualified teachers and so classes go untaught. A lack resources for equipment such as computers. School buildings may require extensive repairs. Often schools with the best results get the most funding. More disruptive and disaffected students making it harder for pupils to learn. Also, many Americans with money send their children to expensive but high attaining private schools. Don’t stereotype: Within the Hispanic group Cuban Americans, who tend to be wealthier, often do better than Mexican or Puerto Ricans in terms of educational success. KNOWLEDGE

Drop out rates for Blacks and Hispanics do tend to be higher. KNOWLEDGE Graduating High School with a diploma is seen as a crucial step in beating the poverty trap. A college degree is now a prerequisite for a well paid job. Drop out rates for Blacks and Hispanics do tend to be higher. Hispanics and Education Many say that they need to support their family. Limited English skills. Cannot afford to go to school. High illiteracy rates.

Education KNOWLEDGE ANALYSIS Black and Hispanic children are far more likely to attend poor schools. Children from low-income families are 6 times more likely to drop out of school compared to children from high-income families. Strawberry Mansion High

Education Asian American educational success KNOWLEDGE Education ANALYSIS Asian American educational success Unlike Blacks and Hispanics, most Asian Americans do well in education. Evidence shows that Asians tend to have higher educational attainment than the White majority, although this hides the fact that some Asian groups do better than others. For example, Japanese and Korean Americans, who value education due to their cultural background tend to have stable and high incomes and do the best in school. These groups can afford to send their children to the best schools where they often excel. Asians make up 5% of US population but 10% of undergraduates at colleges. On the other hand, many Vietnamese and Cambodians, who are on average poorer than other Asian American groups, do very poorly in terms of education.

Practice Paragraph Analyse the effect of poor education on a group you have studied – 1 x KAKA K – Who suffers from educational inequality and WHY? (Funding Gap, poorer schools often in minority areas) A – Causes poor educational attainment for minority groups in comparison to others - graduation rates example. K – not all minority groups suffer inequality in education though – Asian Americans out perform white Americans – example of % Asians in college A – Educational attainment impacts on WHOLE life – can lead to further problems such as health, income etc