Social Class and Poverty

Intro Every society has some way to structure how people get financial rewards and other benefits (wealth) Access to wealth can affect the way we live and the opportunities that are open to us.

The Economy and Social Classes In every society there are groups of people who receive more benefits or have more power than other groups. These groups are often divided into social classes Social Classes - a broad group in society having common economic, cultural, or political status.

Social classes can be distinguished by inequalities in such areas as: power, authority, wealth, working and living conditions, life-styles, life-span, education, religion, and culture.

Achieved Status – status that is earned through our own personal merit, effort and hard work. “self made millionaire” Ex: Mark Cuban Ascribed Status – status that is assigned to an individual at birth or through aging. “born into wealth” Ex: Paris Hilton

Four major social classes: 1. Wealthy upper class 2. Middle class 3. Working class 4. Poor

Wealthy Upper Class In Canada, approx 3-5% of the population. These individuals are usually born into a made fortune, get to attend the most prestigious universities, make the best contacts and generally have the greatest advantage. Corporate executives, government officials, etc.

Middle Class In Canada, approx 40-50% of the population. Determined by income (goods and services they can afford) and the type of work (degree of control over financial and human resources). “white collar” workers Work that doesn’t involve manual labour (doctors to administrators, etc)

Working Class Approx 30% of Canada’s population. People who work in factories or at manual labour (mechanics, technicians, trades people) “blue collar” Some jobs require little formal training, while others demand a high degree of technical schooling and expertise. Traditionally paid less than middle class, but not always the case.

Poor Approx 20% of Canada’s population Low income makes life unstable and insecure Some earn just enough to afford the basic necessities of life. Usually, cannot get better work due to a lack of education, training, age, disabilities, etc. *Like wealth, can be passed on from one generation to the next.

What is Poverty? We can begin to think about “poor” in term of benefits and necessities in society. Absolute Poverty – the deprivation of goods that are considered essential. Relative Poverty – measuring the deprivation of some against the those who have more.

The average middle class family spends 35% of it pre-tax income on basic necessities Poor families spend 55% of their income on food, clothing and shelter.

Working Poor More than half of the low-income families have some kind of employment. HOWEVER, they usually earn just enough to buy the necessities of life. These individuals are called the working poor. Working Poor – even though and individual has employment, they are not earning enough money to prevent them from being poor.

Many of the working poor have jobs below their skill level, or are doing part-time or seasonal work. Canadians who are working for minimum wage are usually working poor. *individuals who just can’t find work in their trained profession, or those who are new immigrants.

Because they are employed, the working poor often miss out on benefits and programs that are meant to help the unemployed. At the same time, they enjoy few if any of the consumer goods that are available to the majority of the population. They often must work long hours just to get by, making it difficult for them to look for better employment.

Impact of Poverty (on Society) Failure to educate a large portion of a society lowers the skill level of that society, making it less competitive in the global economy. A less educated work force slows down economic growth The poor and homeless are also a drain on the medical and social resources.