Chapter 8 Social Class in the U.S.

Chapter Outline Income and Wealth Differences in the U.S. Classical Perspectives on Social Class Contemporary Sociological Models of the U.S. Class Structure Consequences of Inequality in the United States Poverty in the United States Sociological Explanations of Social Inequality in the United States U.S. Stratification in the Future

Income and Wealth Income is economic gain from wages, salaries, governmental aid, and ownership of property. Wealth is the value of a person’s economic assets, including income, personal property, and income-producing property. Wealth can be used to generate income.

Income Inequality In 1999: Wealthiest 20% of households received almost 50% of total income. Poorest 20% of households received less than 4% of total income. Top 5% received more than 20% of all income - an amount greater than that received by the bottom 40% of all households.

Wealth Inequality A1995 study indicated the holdings of super- rich households had risen to almost 40% of all assets in the nation. One survey found the net worth of the average white household was twelve times that of the average African American household. 44% of whites had assets of $50,000 or more, only 13% of African Americans were in this category.

Weberian Model of the Class Structure Upper Class - comprised of people who own substantial income ‑ producing assets. Upper-Middle Class - based on university degrees, authority on the job, and high income. Middle Class - a minimum of a high school diploma or a community college degree.

Weberian Model of the Class Structure Working Class - semiskilled workers, in routine, mechanized jobs, and workers in pink collar occupations. Working Poor - live just above to just below the poverty line. Underclass - people who are poor, seldom employed, and caught in long-term deprivation.

Marxian Criteria for Class Structure 1. Ownership of the means of production. 2. Employing others. 3. Supervising others on the job. 4. Being employed by someone else.

Marxian Model of the Class Structure Capitalist Class - those who have inherited fortunes, own corporations, are corporate executives who control company investments. Managerial Class - upper ‑ level managers and lower ‑ level managers who may have control over employment practices.

Marxian Model of the Class Structure Small-Business Class - small business owners, craftspeople, and professionals who hire a few employees and do their own work. Working Class - blue ‑ collar workers and white ‑ collar workers who do not own the means of production.

Health Consequences of Inequality 13% of children under age 12 are hungry or at risk of being hungry. Approximately 1/3 of children living in poverty consume less than the federally recommended guidelines for caloric and nutritional intake. An estimated 38.7 million people in the United States were without health insurance in 2000.

Poverty in the U.S. In 1997, over 36 million (13.8 % of the U.S. population) lived below the poverty level, which was $15,141 for a family of four. In 2000, over 28 million people lived below the official government poverty level of $17,603 for a family of four.

Distribution of Poverty in the U.S. Age and Race By AgeAll RacesWhite African AmericanHispanic Under – and above

Distribution of Poverty in the U.S. Education By Education All RacesWhite African AmericanHispanic No high school diploma years of high school Some college College degree (or more)

Who Are the Poor? 1 out of 3 are under 18 years of age. 2/3 are women. In 2000, 31% of all African Americans and 28% of Latino/a children under 18 lived in poverty.

Theories of Social Inequality FunctionalistSome degree of social inequality is necessary for the functioning of society and thus is inevitable. ConflictPowerful individuals and groups use ideology to maintain their positions in society at the expense of others. Symbolic Interactionist The beliefs and actions of people reflect their class location in society.