1. Sociology 201 Chapter 7 Poverty

2. What is Poverty?  The Social Security Administration calculates the poverty line – In 2000, the OPL was $13,314 for 3 and $17,404 for 4 This is $4,351/person per year or $363/month – In reality, a person is poor if they are denied proper food, health, diet, clothing, & shelter

3. Who Are The Poor?  13.7% or 36.5 million Americans were poor in 1996 – This figure is low because it is easy for the census to miss the poor and the OPL is very low  Concentration of the poor – Racial minorities – Women 2/3 of poor adult population – Children Around 14.46 million – The elderly – Location The West has the highest rate of poverty followed by the south. Why? – The Poor-poor Those living at or under ½ the OPL

4. Why Are The Poor, Poor?  They have little money and training  The wealthy often perpetuate the plight of the poor – Wealth & ownership is concentrated Again, take a look at the figures on wealth & ownership from chapter two…  Business practices often contribute – Technological changes – Multinational corps. – Megamergers – Low wages for bigger profits  Government may perpetuate poverty – Unemployment comp. & welfare only provide a subsistence living

5. Ideological Support for Inequality  Our culture favors inequality – Our values & beliefs support the economic status quo E.g. we learn about competitive individualism at an early age –Once internalized we think there will always be “winners” and “losers” without thinking that the race might be rigged

6. Consequences of Poverty  Our economic situation has psychological factors – Sense of self worth – Sense of security  Life chances are unequally distributed – By birth, an upper class child will be able to buy a better life  Denial of educational opportunities means that much human talent and potential remains hidden or wasted  It is costly – Welfare, employment comp., crime, etc.

7. Looking at the Problem Theoretically  The Interpretive Perspective – A student vs. A person below the OPL Who “feels” poor?  The Functionalist Perspective – Must pay more for positions that require substantial training and talent – Need the poor to perform the “dirty” work that – The poor keep wages low – Thus poverty provides important “functions” for society  The Conflict Perspective – Inequality comes from the struggle over scarce resources – The rich use their position to keep the poor poor They pass their advantages to their children

8. Potential Solutions  Education – People need to know how pervasive poverty is  Work out precise mechanisms to redistribute wealth & income – One solution is the NIT (Negative Income Tax) – Rework the tax structure – Free or low-cost services should be made available to all E.g. Insurance, job training, child care, etc.