Chapter 7 - Class & Income Inequality

Question 1

What is economic inequality

Answer 1

The unequal distribution of economic resources (income & wealth).

Question 2

Where does economic inequality exist?

Answer 2

Economic inequality exists in all societies (to different extents).

Question 3

What is income? Name some examples.

Answer 3

Money received in exchange for services or investments.
Examples include a pay check, stock return, social security benefits.

Question 4

What is wealth? Name some examples.

Answer 4

Wealth is the worth of your assets minus your debts. Examples include savings accounts, houses, cars, investment portfolios.

Question 5

What characteristics should determine how much money someone makes? Who does make the most money in the USA?

Answer 5

Education, specialized skills, and responsibility should determine how much money someone earns.
CEOs make the most money at 320x more than their normal worker.

Question 6

What is the general economic trend over the past 50 years for lower, middle, and upper class (income-wise)

Answer 6

Over the past 50 years, the share of income for the lower and (particularly) middle class has decreased while upper class has increased.

Question 7

What is the general economic trend over the past 50 years for lower, middle, and upper class (wealth-wise)

Answer 7

Lower and middle class have decreased while upper class wealth has increased.

Question 8

What is larger - the income gap or wealth gap (between upper and lower/middle class).

Answer 8

The wealth gap is much larger.

Question 9

What is the Gini coefficient?

Answer 9

A measure of income inequality; it measures how much income would need to be redistributed to have a completely equal society. The higher the coefficient, the more economic inequality.

Question 10

Where does the United States rank in terms of income inequality among postindustrial nations?

Answer 10

The United States ranks first, meaning it has the highest income inequality of these countries.

Question 11

What is the structural functionalist perspective on economic inequality?

Answer 11

Structural functionalists argue that some level of economic inequality is needed for society, as those who contribute the most should receive a highest income.

Question 12

What is a meritocracy?

Answer 12

A system where those with the most talent rise to the top and are subsequently rewarded for their contributions.

Question 13

What does the theory of meritocracy assume?

Answer 13

It assumes a level playing field is present, where all members of society have the same opportunities - something generally not present in most societies.

Question 14

How did Karl Marx view economic distribution, particularly involving merit?

Answer 14

Marx believed rewards were distributed based on social class, NOT merit. He said the bourgeoisie goals of profit and proletariat goals of making a good living were incompatible as the money either goes to the owners or workers, not both.

Question 15

What is false consciousness?

Answer 15

According to Marx, it’s when members of a class embrace a set of values that work against their own interests.

Question 16

What is socioeconomic status?
Who primarily made this term?
What traits determine one’s socioeconomic status?

Answer 16

Socioeconomic status is one’s social standing in society.
The term was contributed mainly by Max Weber.
Three traits determine one’s socioeconomic status: 1. Class (income) 2. Status (prestige) 3. Party (A person’s political party).

Question 17

What is social stratification?

Answer 17

The way valuable goods and desired intangibles are distributed in society.

Question 18

Social stratification is present in all societies. What is creating and maintaining these inequalities?

Answer 18

Structured inequalities maintain these inequalities in society.

Question 19

What are structured inequalities?

Answer 19

Advantages and disadvantages built into the social institutions of society, such as education, religion, government, family.

Question 20

What is an estate system?

Answer 20

A society with very limited social mobility (far above slavery). Laws distribute power and rights based on social standing. Prevalent in 1800s Europe, Asia.

Question 21

What is a caste system?

Answer 21

A society more stringent than estate, they have rigid social groups that assign specific roles, generally for a lifetime. Most prominent in India until 1950.

Question 22

What is a class-based system

Answer 22

A society where members of a social class share similar economic statuses and lifestyles. Generally allows for more class mobility, though this is not equal for all people.

Question 23

What is a social class?
How many are there?

Answer 23

A distinct group of people based on income, occupation, education.
Generally, five distinct social class exists: upper, upper middle, middle, lower/working, lowest.

Question 24

How is income split up among the different social classes?

Answer 24

The upper end of the classes generally has a much larger share of the wealth than they should based on their number of people. Ex. Top 10% of people have almost 50% of the overall income. Top 1% have 20% of overall income.

Question 25

What is social class reproduction?

Answer 25

A process of socializing with only individuals in the same social class, which ensures children maintain their status.

Question 26

What has been the trend for the middle class in the USA in recent years?

Answer 26

The middle class has become less population as more people are in the working class instead.

Question 27

What does culture of poverty mean?
Who coined the term?

Answer 27

Beliefs, attitudes, and values that characterize those living in poverty and distinguish them from more productive members of society. It suggests that if people changed their attitudes and worked harder, they could escape poverty.
Oscar Lewis coined the term.

Question 28

Traditionally, how have Republicans and Democrats viewed poverty?

Answer 28

Republicans have viewed poverty as the result of not working hard enough and having the wrong attitude.
Democrats have advocated that poverty is the result of societal forces and government failures.

Question 29

What is upward mobility?
What is downward mobility?

Answer 29

Upward mobility is the ability to climb the economic ladder.
Downward mobility is when someone can fall down the economic ladder.

Question 30

What is intergenerational mobility

Answer 30

It’s a change in social class from one generation to the next.

Question 31

Where does the United States rank among postindustrial countries in economic mobility?

Answer 31

The United States is middle of the pack.

Question 32

What is structural mobility?

Answer 32

When changes occur in a society’s institutions that lead to upward or downward mobility for a group of people.

Question 33

As economic inequality increases, what happens to class mobility?

Answer 33

Class mobility decreases with more inequality because those at the bottom get even less opportunities, while those at the top get even more power and influence to keep themselves at the top.

Question 34

How does economic inequality affect education?

Answer 34

As schools in poor areas receive less funding, they provide fewer resources to help individuals succeed. Subsequently, those in community colleges are less likely to graduate due to poor advising, and having other personal problems that people in upper classes can generally avoid.

Question 35

How has economic inequality affected housing?

Answer 35

As ownership has become more concentrated and policies have shifted away from fostering ownership, housing costs have skyrocketed to historic prices, making buying a home (an important factor in social mobility) much more difficult.

Question 36

What are some factors that impact one’s chance of experiencing poverty?

Answer 36

Education, race, gender, marital status, and age.

Question 37

What is absolute poverty?

Answer 37

When a household or individual fails to have income required to meet the basic human needs.

Question 38

What is relative poverty?

Answer 38

When a household or individual is facing poverty RELATIVE to others. Ex. poorest house on the block.

Question 39

What is deep poverty?

Answer 39

Those who have an income of less than half the poverty level.

Question 40

Max Weber emphasizes the importance of human capital. What does this mean?

Answer 40

Human capital means the skills that one has. Someone with particular skills can demand more money and have a higher position is society as a result.