Socioeconomic Status Socioeconomic Status (SES) is estimated as a composite of income, education level, work experience, and the prestige or status of your job It is your position in society and social position in relation to others Social class is more than just income and money The effects of class are not always obvious because you don’t necessarily see what’s happening to others http://www.thestranger.com/seattle/welfare-state/Content?oid=6686284 While wealth and prestige often go hand in hand, they don’t necessarily have to. Drug dealers, for example, may be multimillionaires, but they aren’t well respected and therefore aren’t ranked high in the stratification system. On the flip side, professors may earn a modest salary, but they command a fair amount of respect.

Socioeconomic Status The effects of class are not always obvious because you don’t necessarily see what’s happening to others http://www.thestranger.com/seattle/welfare-state/Content?oid=6686284 While wealth and prestige often go hand in hand, they don’t necessarily have to. Drug dealers, for example, may be multimillionaires, but they aren’t well respected and therefore aren’t ranked high in the stratification system. On the flip side, professors may earn a modest salary, but they command a fair amount of respect.

Socioeconomic Status The effects of class are not always obvious because you don’t necessarily see what’s happening to others http://www.thestranger.com/seattle/welfare-state/Content?oid=6686284 While wealth and prestige often go hand in hand, they don’t necessarily have to. Drug dealers, for example, may be multimillionaires, but they aren’t well respected and therefore aren’t ranked high in the stratification system. On the flip side, professors may earn a modest salary, but they command a fair amount of respect.

Social Class Group of people who share a similar economic position in society, based on wealth and income Divisions based on ties to the economy of a society Commonly known as the following Upper Class Middle Class Working Class Underclass What is the best predictor of SAT score? – your father’s income…. 2007 SAT scores for kids whose families earned less than $10,000/yr = 1301; for kids whose families earned more than $100,000/yr = 1637. Sofas on front porches; laundry on outdoor clothes lines – prohibited in some communities as “low class” yet needed for some who have few resources The upper class (the highest earning 5% of the U.S. population) is usually thought to include owners of vast amounts of property and other forms of wealth, major shareholders and owners of large corporations, top financiers, rich celebrities and politicians, and members of prestigious families. The middle class (roughly 45% of the population) is likely to include college-educated managers, supervisors, executives, small business owners, and professionals (for example, lawyers, doctors, teachers, and engineers). The working class (about 35% of the population) typically includes industrial and factory workers, office workers, clerks, and farm and manual laborers. Most working class people don’t own their own homes and don’t attend college. Finally, the “poor” (about 15% of the population) consist of people who work for minimum wages or are chronically unemployed. They are sometimes referred to as the lower class or underclass. These are the people who do society’s dirty work, often for very low wages (Walton, 1990; E. O. Wright, Costello, Hachen, & Sprague, 1982).

Social Class – Ladder What is the best predictor of SAT score? – your father’s income…. 2007 SAT scores for kids whose families earned less than $10,000/yr = 1301; for kids whose families earned more than $100,000/yr = 1637. Sofas on front porches; laundry on outdoor clothes lines – prohibited in some communities as “low class” yet needed for some who have few resources The upper class (the highest earning 5% of the U.S. population) is usually thought to include owners of vast amounts of property and other forms of wealth, major shareholders and owners of large corporations, top financiers, rich celebrities and politicians, and members of prestigious families. The middle class (roughly 45% of the population) is likely to include college-educated managers, supervisors, executives, small business owners, and professionals (for example, lawyers, doctors, teachers, and engineers). The working class (about 35% of the population) typically includes industrial and factory workers, office workers, clerks, and farm and manual laborers. Most working class people don’t own their own homes and don’t attend college. Finally, the “poor” (about 15% of the population) consist of people who work for minimum wages or are chronically unemployed. They are sometimes referred to as the lower class or underclass. These are the people who do society’s dirty work, often for very low wages (Walton, 1990; E. O. Wright, Costello, Hachen, & Sprague, 1982).

Upper Class This is the most discussed group at 1% of the population Families headed by high-level executives, lawyers, doctors, scientists, celebrities, etc. Education system and media both play important roles in perpetuating and reproducing the United States class structure In public schools, working-class and poor kids are subtly taught their place through authority relationships with teachers and principals so that they will be prepared for the subordinate work positions they will probably occupy in the future (Bowles & Gintis, 1976). Members of the highest reaches of the upper class, in contrast, often spend their childhoods in private schools, their adolescence in boarding schools, and their college years in heavily endowed private universities (Domhoff)

Middle Class In 1980, the median household income (in current dollars) across all ethnoracial groups in the United States was $44,059. By 2009, it had only increased to $49,777 (DeNavas-Walt, Proctor, & Smith, 2010). Between 1980 and 1990, median household income grew by about 8%. But between 2000 and 2007, median income actually shrank by about 1%; between 2008 and 2009, it shrank by an additional 2.9% (U.S. Bureau of the Census, 2010). Hourly earnings, weekly earnings, and employer-provided benefits like pensions and retirement accounts have all fallen since 2007 (Mishel, Bernstein, & Shierholz, 2009). The number of workers who earn at least $20 an hour (a wage that once symbolized “middle-class”) has dropped nearly 60% over the past three decades (cited in Uchitelle, 2008). Indeed, after adjusting for inflation, the median hourly wage today is only $16.27 (U.S. Bureau of Labor Statistics, 2010b).

Middle Class Important in defining the United States culture as they are 40-50% of the population Other classes are measured against the values and norms of the middle class Middle class people worry about Job Security Taxes Unemployment Cost of Living Health Care In 1980, the median household income (in current dollars) across all ethnoracial groups in the United States was $44,059. By 2009, it had only increased to $49,777 (DeNavas-Walt, Proctor, & Smith, 2010). Between 1980 and 1990, median household income grew by about 8%. But between 2000 and 2007, median income actually shrank by about 1%; between 2008 and 2009, it shrank by an additional 2.9% (U.S. Bureau of the Census, 2010). Hourly earnings, weekly earnings, and employer-provided benefits like pensions and retirement accounts have all fallen since 2007 (Mishel, Bernstein, & Shierholz, 2009). The number of workers who earn at least $20 an hour (a wage that once symbolized “middle-class”) has dropped nearly 60% over the past three decades (cited in Uchitelle, 2008). Indeed, after adjusting for inflation, the median hourly wage today is only $16.27 (U.S. Bureau of Labor Statistics, 2010b).

Working Class (Lower-Class) More susceptible to downturns in economy Lower levels of education Job loss through downsizing Hourly wage jobs Often define their jobs as irrelevant to their core identity View job as sacrifice for family Want better for their kids In 2009, during the height of the recession, American employers initiated close to 12,000 “mass layoff events” (when at least 50 employees from a single employer file for unemployment insurance benefits), resulting in the loss of 2.1 million jobs, mostly in manufacturing and retail (U.S. Bureau of Labor Statistics, 2011b).

The Poor (Underclass) Poverty pervades all aspects of life uncertainty of shelter, food, and employment Most publicly visible consequence of poverty is homelessness Between 2.3 and 3.5 million people experience some type of homelessness over the course of a year Typical poor family spends about 60% of after-tax income on housing Average middle-class homeowner about 23% Experience barriers to health care and education The National Alliance to End Homelessness (2011) estimates that there are over 656,000 homeless people, 38% of whom are completely unsheltered. But because people move in and out of homelessness or are homeless for a short period of time, it’s estimated that somewhere between 2.3 and 3.5 million people experience some type of homelessness over the course of a year. In 2011, the nationwide median housing wage—the minimum amount of money a person would have to make to afford 2-bedroom rental housing—was $18.46 an hour (or an annual income of $38,400, assuming full-time, year-round employment). That’s more than double the federal minimum wage. Nowhere in the United States does a full-time, minimum-wage job provide enough income to afford adequate housing, and in some states—New York, Connecticut, Maryland, and Massachusetts to name a few—a household would need at least three minimum-wage jobs. In Hawaii, four minimum wage jobs wouldn’t be enough (National Low Income Housing Coalition, 2011). With foreclosure rates rising steadily (National Alliance to End Homelessness, 2011), the housing future looks even bleaker.

Poverty Absolute Poverty – Not having the minimal requirements a human being needs to survive Relative Poverty – An lesser economic position compared to the living standards of the majority of a given society Feminization of Poverty – is when women and children make up an increasing proportion of the poor Near poor, or working poor – above the Federal poverty line, but not enough to get ahead or even really make it if there is an emergency

Poverty Poverty Line (government calculation) Amount of yearly income a family needs to meet its basic needs Developed in 1960s, and based on amount needed for food times three In 2014, poverty line for family of four was $23,850 Poverty Rate Percentage of residents in the United States whose income falls below the poverty line is estimated at more than 16% Expenses such as health care, child care, transportation etc. That dollar amount is established by the U.S. Department of Agriculture and for decades has been computed from something called the Thrifty Food Plan. This plan, developed in the early 1960s, is used to calculate the cost of a subsistence diet, which is the bare minimum a family needs to survive. This cost is then multiplied by 3 because research at the time showed that the average family spent one third of its income on food each year. The resulting amount was adopted in 1969 as the government’s official poverty line. Even though the plan is modified periodically to account for changes in dietary recommendations, the formula itself and the basic definition of poverty have remained the same for about four decades. When used to describe national trends in poverty, the overall poverty rate can obscure important differences among subgroups of the population. For example, in 2009, 9.4% of people who identify themselves as non-Hispanic Whites and 12.5% of Asian Americans fell below the poverty line. That same year, 25.8% of Blacks and 25.3% of Latino/as (who could be of any race) were considered poor. The poverty rate in the South (15.7%) and West (14.8%) is higher than the rate in the Midwest (13.3%) and Northeast (12.2%). Finally, poverty is higher in rural areas (16.6%) than in metropolitan areas (13.9%), although it’s highest in inner cities (18.7%) (DeNavas-Walt, et al., 2010).

Growing Income Inequality The United States has greatest income inequality of any industrialized nation Between 1979 and 2009, the incomes of the richest fifth of U.S. families grew by 49%. During that same period, the incomes of the poorest fifth fell by 7.4%. Let’s look at this another way. In 1973, the bottom 99.5% of the population (in other words, all but the richest 0.5%) received 93.7% of all the national income. By 2008, that share had fallen to 83.1% (Economic Policy Institute, 2011). The average American chief executive makes over $11 million a year. In 2010, the average annual compensation for the 10 highest-paid U.S. executives was over $62.4 million (AFL-CIO, 2011). In 1965, chief executives earned $24 for every $1 earned by the average production worker; by 2009, that figure had increased to $185 (Economic Policy Institute, 2011). We may want to believe that personal effort and hard work solely determine our success, but it’s hard to imagine that a CEO of, say, an electronics company works 185 times harder than a person who actually assembles the TVs and cell phones.

Growing Income Inequality Between 1979 and 2009, the incomes of the richest fifth of U.S. families grew by 49%. During that same period, the incomes of the poorest fifth fell by 7.4%. Let’s look at this another way. In 1973, the bottom 99.5% of the population (in other words, all but the richest 0.5%) received 93.7% of all the national income. By 2008, that share had fallen to 83.1% (Economic Policy Institute, 2011). The average American chief executive makes over $11 million a year. In 2010, the average annual compensation for the 10 highest-paid U.S. executives was over $62.4 million (AFL-CIO, 2011). In 1965, chief executives earned $24 for every $1 earned by the average production worker; by 2009, that figure had increased to $185 (Economic Policy Institute, 2011). We may want to believe that personal effort and hard work solely determine our success, but it’s hard to imagine that a CEO of, say, an electronics company works 185 times harder than a person who actually assembles the TVs and cell phones.

Movement of people between classes Social Mobility Movement of people between classes Horizontal Mobility Changing jobs within the same class Vertical Mobility Occupation moves up or down Caste System Does not allow for social mobility

“Benefits of Poverty for Society” Ready pool of low-wage laborers Ensures enough people to populate the military Military personnel in the war in Iraq were disproportionately ethnic and racial minorities from poor or working-class families By 2006, 34% of U.S. military personnel killed in Iraq came from the poorest quarter of families, while 17% came from the richest quarter

“Benefits of Poverty for Society”