October 7 th Sign in, deposit participation cards Pass out Midterm #1 Continue Lecture Three Homework:  Read Chps 9-11 of Working Poor  As you read,

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Presentation transcript:

October 7 th Sign in, deposit participation cards Pass out Midterm #1 Continue Lecture Three Homework:  Read Chps 9-11 of Working Poor  As you read, make notes on what you think the causes of poverty are for the ‘working poor’

Poverty Poverty: Official definition of poverty was developed in 1964 and is based on food consumption as 1/3 of household costs  Absolute – physical deprivation  Relative – deficiency relative to the population as a whole What are the main expenditures for households today?

Who is most likely to be in Poverty? 58% of Americans will live poverty for at least 1 year  1 in 3 will experience extreme poverty for at least one year  27% will experience poverty before age 30 What creates this high risk for Americans?  Time – life stages, such as divorce and other unanticipated events  Safety Net – very few social services to help people through rough stages  and Labor Market – not enough good paying jobs

Feminization of Poverty Women are disproportionately represented among the poor  More likely to be in low-pay service jobs  Women still make $0.76 for every man’s dollar 42% of female-headed households are in poverty, compared to 9% of two-parent families  Children are more likely to live in poverty than adults – 35% of US poor are children

The Color of Poverty Higher rates of poverty among non-whites  White- 8%  Black – 25%  Hispanic – 22%  American Indian – 25% Average white family has a net worth 7 times that of the average Black family  This gap has grown since the 1960’s The wealth gap accounts for many of the racial inequities  Racial disparities almost disappear when economic resources are equal

Working Poor or the Nearly Poor Working Poor: workers in jobs at 27 weeks of the year that are less secure, low-paying, and deskilled  In 2005, 36.8% of the poor worked and 11.4% worked full-time Over 5% of the population are ‘working poor,’ but majority are non-white, female, and immigrant

Why so many working poor? Economic restructuring in the post-industrial society  High skill, high tech, high wage jobs versus  Low skill, low tech, low wage jobs Increasing gap between the rich and poor  Ratio of CEO-worker pay in 2005 was 262 to 1 (in 1965 it was 24 to 1) Welfare to work (1996) pushed many poor (primarily women) into low paying, dead-end jobs

Graffiti: The Working Poor