1. 1 7. Social and Economic Inequality in the USA The United States is a capitalist country which allows for rich and poor. The opportunity to become rich is part of the American Dream. Most Americans believe in the American Dream and there are thousands of people who have achieved. However, for every ‘winner’ there are many more ‘losers’. This section of the course will look at the huge inequalities in US society, especially as they affect ethnic minority groups. Learning Intentions (Pupils should be able to): Provide evidence of social and economic inequality between the majority White population and the ethnic minority groups in terms of employment, income/wealth and poverty levels.

2. 2 Social and Economic Inequality in the USA Compared to other developed countries, the USA is a very unequal society. According to the UN, the Gini coefficient (which gives a measure of wealth or income inequality within a country) for the USA is 40.8 (and rising; UK 36). What this means is that the richest people in the USA have, on average, a far greater share of the total income or wealth than the poorest people. Indicators of Inequality in Society: Economic inequality can be measured in terms of income, poverty levels and employment/ unemployment levels. Social inequality can be measured in terms of crime, housing (ownership, value), health (life expectancy, mortality rates, etc.) and educational attainment.

3. 3 Social and Economic Inequality in the USA CHIPHEECHIPHEE Crime Housing Income Poverty Health Education Employment One way to remember information is through the use of a mnemonic. This is were the first letter of a group of words are strung together to make a new ‘reminder’ word.

4. 4 Social and Economic Inequality in the USA There are three main minority groups Hispanics, Blacks and Asians (although statistics on Native Americans are credited) of which information is widely available. In this part of the course we will examine the success of minority groups compared to the majority White population. Unemployment Rates April 2011 WhitesHispanicsBlacks Asians 9.0% 12.5%16.5% 6.8% Employment Rates April 2011 WhitesHispanicsBlacks Asians 68.2% 67.7%62.7% 65.5%

5. 5 Social and Economic Inequality in the USA Wealth is all a person has including money in the bank, land, property, shares, etc. Income is a person’s earnings. In 2009 the average household income by ethnic group was: Whites $65,317Blacks $40,685Hispanic $45,817 Asians $76,747 There is a debate in the USA about where the poverty line should be drawn but it is generally accepted that poverty rates in the US are higher than elsewhere in the developed world. In 2007, 39.1m Americans were in poverty (12.6%) In 2010, according to official figures the percentage of adults in poverty by ethnic group was: Whites 8.6%Blacks 24.7% Hispanics 23.2% Asians 11.8%

6. 6 Questions 1.What does the Gini co-efficient measure? 2.Explain the mnemonic CHIP HEE. 3.What conclusion can be drawn from the graph on Slide 3? 4. Make one conclusion about minority groups compared to the White population for each of the tables on Slides 4 and 5. 5. “Whites do better than all minority groups in every indicator of social and economic inequality. Shannon Harte. To what extent is Shannon selective in her use of facts? Explain your answer with statistics. Reading: Pulse: ‘International Issues’ pages 62-75 or Leckie and Leckie: ‘Course Notes’ pages 234-240. Social and Economic Inequality in the USA