THE AMERICAN DREAM Land of opportunity Rags to Riches We can do anything as long as we try! Land of opportunity Rags to Riches Anyone can become rich and powerful! Work hard, and you’ll make a better life for yourself and your family! Meritocracy: skill + effort = reward

Austrian immigrant – governor of California Grew up poor – richest women in America Lived in his car – billion-dollar food empire Russian immigrant – fashion billionaire

THE DECLARATION OF INDEPENDENCE “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are Life, Liberty, and the Pursuit of Happiness.”

SOCIAL MOBILITY DEFINITION: the movement of families up and down the economic ladder STATISTICS: 40% of incomes stay the same. Only 37 of America’s 400 wealthiest people inherited their money from their family.

86% think they are doing the same as or better than their parents 20% about the same 27% somewhat better 39% much better 86% think they are doing the same as or better than their parents 58% agree in 1983 80% agree in 2005 more and more people think that you can start poor and become rich

SOCIAL STRATIFICATION DEFINITION: the study of systematic inequality between groups of people. IN TERMS OF: Class Race Gender

SOCIAL CLASS DEFINITION: the hierarchical distinctions between individuals or groups in societies. KEY FEATURES: Wealth: income, savings, investments, property Power: the ability to do what you desire, even if others oppose Prestige: respect and deference for a valued position

SOCIAL CLASS: THE UPPER CLASS 0.5% of Americans belong to the upper class. Wealth: VERY HIGH Power: HIGH Prestige: HIGH Wealth: Top 1% owns 33% of all net worth in the United States. Their incomes come mostly from investments such as stocks and bonds—so they keep making more and more money. Power: Their resources give them a lot of buying power. Their wealth also gives them a lot of political power. Prestige: Family names =“rich and powerful.” Examples—Rockefeller, Carnegie, Gates.

SOCIAL CLASS: THE CORPORATE CLASS 0.5% of Americans belong to the corporate class. Wealth: HIGH Power: HIGH Prestige: HIGH Wealth: They are not as wealthy, but still earns a lot of money. The median salary of a CEO is $10.8 million. Power: They tend to be heads of companies or in the government. They have a lot of power over the people they direct and in society. Prestige: They are in positions where they have a lot of influence. They tend to be considered high-status.

SOCIAL CLASS: THE MIDDLE CLASS 43% of Americans belong to the middle class. Wealth: MEDIUM Power: MEDIUM Prestige: MEDIUM Wealth: They have some wealth, but less property and lower incomes. The median salary is $34,000 for a teacher, $58,000 for an engineer. Power: They tend to work for other people and they have fewer resources. They tend to have less power than the upper or corporate classes. Prestige: They tend to work white-collar jobs. This gives them respect and some status.

SOCIAL CLASS: THE WORKING CLASS 43% of Americans are in the working class. Wealth: MEDIUM TO LOW Power: LOW Prestige: LOW Wealth: They own and earn very little. The median salary is $24,000 for a factory worker, $23,000 for a machine operator. Power: They have few resources and work in low positions. Sometimes, they can form unions to get some power. Prestige: They tend to work in blue-collar jobs. These jobs usually get less respect.

SOCIAL CLASS: THE LOWER CLASS 13% of Americans belong to the lower class Wealth: LOW TO NONE Power: VERY LOW Prestige: VERY LOW Wealth: They usually own nothing and work in very low-paying jobs. They tend to be very poor, but only about 33% of them get welfare. Power: They have few or no resources to help them bargain for power. They tend to be excluded from political processes. Prestige: They are often jobless or working menial jobs. They get little respect.

CLASS DIFFERENCES Not everyone is mobile. Upper class Who lives longer? Who goes to elite colleges and universities? Upper class Lower class Who lives in worse neighborhoods? Not everyone is mobile. Intergenerational transmission of advantages and disadvantages

LIMITED MOBILITY Least movement on the top and on the bottom

RACIAL INEQUALITY: INCOME Whites and Asians have higher incomes than Blacks and Hispanics. These RACIAL GAPS are substantial. Median household income: Whites vs. Blacks: +$15,417 Whites vs. Hispanics: +$12,319

RACIAL INEQUALITY: LABOR MARKET Another racial gap: how many in each racial group are unemployed? RACE % unemployed in 2000 White 4.3% Asian 5.1% Black 11.8% Hispanic/Latino 9.3% American Indian 12.4% Native Hawaiian or Pacific Islander 10.9%

RACIAL INEQUALITY: HIGH SCHOOL DEGREE All groups are improving, BUT… Fewer Blacks and Hispanics are high school graduates.

RACIAL INEQUALITY: COLLEGE DEGREE Smaller improvements, AND… Fewer Blacks and Hispanics are college graduates.

GENDER INEQUALITY: INCOME Thinking about men and women who work full-time… Median income Male: $29,458 Female: $18,957 Difference: $10,501 For every dollar men make, women make only 64 cents

GENDER INEQUALITY: LABOR MARKET Are differences because of… Education? Hours of work? Occupation? Both college graduates, women < men Both full-time, women < men Same occupation, women < men

GENDER INEQUALITY: POVERTY Families headed by women are much more likely to be poor.

THE AMERICAN DREAM? Land of opportunity? Rags to Riches? There is SOME mobility, but it is LIMITED. Land of opportunity? Rags to Riches? The really rich get richer, the really poor get poorer. Some groups—by race, by gender—still get less even if they work just as hard. Meritocracy: skill + effort = reward?