Chapter 2 Poverty and Wealth

Economic Inequality in the United States Social stratification: –the system by which society ranks categories of people in a hierarchy Stratification produces social classes –categories of people who have similar access to resources and opportunities

Economic Inequality in the United States Any discussion of problems such as poverty must include a discussion of income and wealth Taxation is a common device used by the government to reduce economic inequality

The Rich and the Poor: A Social Profile “The rich”: those families who fall within the top 10 percent of income distribution. The “poverty line”: the level of annual income below which a person or family is defined as poor and thus entitled to government assistance The “poverty gap”: the difference between the official poverty line and the actual income of the typical poor household

The Extent of Poverty Profile of the U.S. poor –Age: at greatest risk are children –Race: African Americans and Hispanics –Gender: women –Family Patterns: single mothers –Region: the South and the West

Social Problems Linked to Poverty Poor health –The link between poverty and health is evident from birth to old age –The infant mortality among the poor is twice the national average and among the poorest, four times the national –Death comes earlier to the poor, who are more likely to die from infectious diseases and violence at any age

Social Problems Linked to Poverty Substandard housing –About 500,000 people are homeless in the U.S. on a given night –Up to 2 million people are homeless at some point during the year –Low income coupled with a decrease in available low-income housing leads to homelessness

Social Problems Linked to Poverty Limited schooling –Poor children are less likely than rich children to complete high school –fewer poor children enter college and have less of a chance of completing an advanced degree Uncertain work and the working poor

Social Problems Linked to Poverty Crime and Punishment –Due to the focus on street crime, the poor are more likely to face arrest, trial, conviction, and prison –The poor depend more on public defenders and court-appointed attorneys, most of whom are underpaid and overworked

Responding to Poverty: The Welfare System Social welfare program:an organized effort by government, private organizations, or individuals to assist needy people defined as worthy of assistance

Responding to Poverty: The Welfare System Large government-run welfare programs have three characteristics : –they direct money to specific categories of people; –they benefit many people (e.g., the elderly, veterans, students, and farmers); and –they do not significantly change income inequality

Social welfare has a long and controversial history in the United States The colonial era (the 1600s and 1700s); The earlier industrial era (the 19 th century – when attitudes toward the poor became more negative); The twentieth century (with its soaring immigration and the 1929 great depression, and Franklin Roosevelt’s “New Deal.”)

Welfare Today Changes in the welfare system began to occur when President Clinton pledged in 1992 to “end welfare as we know it.” The result was the Welfare Reform Act of 1996 The public remains divided over whether people deserve help

Welfare Reform Act of 1996 Replaced federal AFDC program with a new state related program – Temporary Assistance for Needy Families (TANF). New rules require able-bodied people receiving benefits to find a job or enroll for job retraining within two years.

Welfare Reform Act of 1996 States can set their own qualifications benefits, but must limit assistance to two consecutive years with a lifetime cap of five years. The program directs all states to move half of single parents receiving welfare into jobs or retraining by 2002.

Structural functional analysis: Some poverty is inevitable –Social pathology theories: focus on personal deficiency –Social disorganization theory: too much change –Contemporary functional theory: inequality is useful Davis and Moore – inequality actually helps society function efficiently Herbert Gans – poverty exists because many people benefit from it

Symbolic Interaction Analysis: Who’s to Blame? Explores the meanings that people attach to those who are poor Criticism: although this approach points to society as the cause of poverty, it says little about how society makes some people poor

Symbolic Interaction Analysis: Who’s to Blame? Based on research by William Ryan- –Pick a social problem –Decide how people who suffer from the problem differ from everyone else –Define these differences as the cause of the problem –Respond to the problem by trying to change the victims, not the larger society

Social-Conflict Analysis: Poverty Can Be Eliminated Marxist Theory: Poverty and Capitalism Poverty Involves More than Money: Cultural Capital Multicultural Theory: Poverty, Race, and Ethnicity Feminist Theory: Poverty and Patriarchy

Politics and Poverty: Constructing Problems and Defining Solutions Conservatives: Personal Responsibility –focus on personal responsibility, stressing the importance of self-reliance Liberals: Societal Responsibility – view poverty as more structural than it is individual; thus they look for societal solutions

Politics and Poverty: Constructing Problems and Defining Solutions Radicals: Change the System –poverty is inherent in capitalist society, –they dismiss social welfare programs and tax plans advocated by liberals as little more than a Band-Aid applied to the body of a person with an incurable disease