The American Class Structure

© Pine Forge Press, an Imprint of SAGE Publications, Inc., 2011 How Many Classes Are There? According to modern historians, there are six (6) social classes in the United States: According to modern historians, there are six (6) social classes in the United States: – Capitalist Class – Upper-Middle Class – Middle Class – Working Class – Working Poor – Underclass The emphasis of this model of the American class structure is based on the source of income as opposed to the amount of income. The emphasis of this model of the American class structure is based on the source of income as opposed to the amount of income.

© Pine Forge Press, an Imprint of SAGE Publications, Inc., 2011

The Capitalist Class The Capitalist Class has a strong influence on the nature and direction of the economy largely as a result of its “investment decisions”. The Capitalist Class has a strong influence on the nature and direction of the economy largely as a result of its “investment decisions”. – Their economic resources also enable them to operate within the world of politics and the media. – This class is defined by its dependence on income-producing wealth.

© Pine Forge Press, an Imprint of SAGE Publications, Inc., 2011 The Upper-Middle Class The Upper-Middle Classis different from the Capitalist Class because of lower incomes and because the majority of their income is gained through salaries and/or professional fees as opposed to income-generating wealth. The Upper-Middle Classis different from the Capitalist Class because of lower incomes and because the majority of their income is gained through salaries and/or professional fees as opposed to income-generating wealth. This class is becoming more influential with their lifestyle (homes, cars, clothes, vacations, etc.). This class is becoming more influential with their lifestyle (homes, cars, clothes, vacations, etc.). The income gap between the Upper-Middle Class and the non-privileged classes has widened. The income gap between the Upper-Middle Class and the non-privileged classes has widened.

© Pine Forge Press, an Imprint of SAGE Publications, Inc., 2011 The Middle Class The Middle Class is large and diverse. The Middle Class is large and diverse. Though some have argued that the Middle Class is disappearing, others suggest this is not the case. Though some have argued that the Middle Class is disappearing, others suggest this is not the case. – It is not the Middle Class but rather the middle-income group that is shrinking.

© Pine Forge Press, an Imprint of SAGE Publications, Inc., 2011 The Working Class The Working Class has traditionally consisted of semiskilled blue-collar laborers. The Working Class has traditionally consisted of semiskilled blue-collar laborers. – Well-paying jobs for these workers have been declining. The political influence of this group has declined significantly. The political influence of this group has declined significantly.

© Pine Forge Press, an Imprint of SAGE Publications, Inc., 2011 The Working Poor Includes most service workers and the lowest-paid operatives and sales and clerical workers. Includes most service workers and the lowest-paid operatives and sales and clerical workers. Members tend to have less stable job histories, sometimes for reasons beyond their control. Members tend to have less stable job histories, sometimes for reasons beyond their control. They are alienated from political life leading to only marginal involvement in the political process. They are alienated from political life leading to only marginal involvement in the political process. This class is defined by their commitment to employment, which is blurred by the tendency of some individuals to move “back and forth” across it. This class is defined by their commitment to employment, which is blurred by the tendency of some individuals to move “back and forth” across it.

© Pine Forge Press, an Imprint of SAGE Publications, Inc., 2011 The Underclass Includes low-income households whose members have limited participation in the labor force. Includes low-income households whose members have limited participation in the labor force. Limited and erratic work histories, lack of skills, and incomplete education makes finding full-time employment difficult for members of this class. Limited and erratic work histories, lack of skills, and incomplete education makes finding full-time employment difficult for members of this class. A large part consists of single mothers! A large part consists of single mothers! A significant portion depends on government transfer programs including public assistance, Social Security, Supplemental Security Income (SSI), and veterans benefits. A significant portion depends on government transfer programs including public assistance, Social Security, Supplemental Security Income (SSI), and veterans benefits.

© Pine Forge Press, an Imprint of SAGE Publications, Inc., 2011 Growing Inequality Earnings Earnings – Since the early 1970’s, wages have more or less stalled, and the distribution of wages has become increasingly unequal. Wealth Wealth – Wealth has become increasingly concentrated at the top of the class hierarchy or pyramid.

© Pine Forge Press, an Imprint of SAGE Publications, Inc., 2011 Growing Inequality, cont. Poverty Poverty – There has been NO reduction in the poverty rate in nearly 40 years. – The poor are less likely to be over 65 and more likely to be under 18 than they were in 1960 and are much more likely to live in female-headed families. Income Income – Those at the middle and bottom of the class structure have seen their incomes grow at a much slower rate than during the early 1900s. – Those at the top have seen their incomes soar!

© Pine Forge Press, an Imprint of SAGE Publications, Inc., 2011 Growing Inequality, cont. Social life Social life – Residential neighborhoods are increasingly segregated by class, which has resulted in decreased levels of interclass association. Social Mobility Social Mobility – Still pretty common, but it has slowed since the 1970s. Political Power Political Power – Power has shifted away from the Working Class and Working Poor and toward the privileged class—in particular, the Capitalist Class.

© Pine Forge Press, an Imprint of SAGE Publications, Inc., 2011 Why the Age of Growing Inequality? cont. Changes in the economy have been amplified by the decisions of corporations, families, and government. Changes in the economy have been amplified by the decisions of corporations, families, and government. The transition from an industrial to a postindustrial society coincided with the beginning of the 1970s. The transition from an industrial to a postindustrial society coincided with the beginning of the 1970s. Wage disparities have widened. Wage disparities have widened. – Disparities are wider today than in – Advanced education and skills make winners out of those with them. – More competitive domestic and global markets have caused corporations to look for ways to cut labor costs such as downsizing and outsourcing.

© Pine Forge Press, an Imprint of SAGE Publications, Inc., 2011 Why the Age of Growing Inequality? cont. Changes in family life have had an impact. Changes in family life have had an impact. – Americans are less likely to marry, more likely to divorce, more likely to have children out of wedlock, and, as a result, much more likely to live in female- headed families. – More women are employed and their earnings have enabled families to overcome the erosion of men’s wages. Public policy has become more responsive to the privileged classes and less sympathetic to other classes. Public policy has become more responsive to the privileged classes and less sympathetic to other classes.

© Pine Forge Press, an Imprint of SAGE Publications, Inc., 2011 Hard Times in the Age of Growing Inequality In December 2009, nearly one in five workers was unemployed or underemployed. In December 2009, nearly one in five workers was unemployed or underemployed. – The burden of this has not been evenly distributed among the different social classes. – The Working Class and the Working Poor have felt the brunt. – The recession has worsened trends including poverty, income inequality, and a shrinking manufacturing base. The potential end is nowhere in sight. The potential end is nowhere in sight.