Chapter 7 - Economic Inequality Flashcards
Economic Inequality
The unequal distribution of economic resources
Relates to and if influenced by other forms of inequality such as those based on gender, race, and sexual orientation.
Income vs wealth
Income is money received in exchange for services.
Wealth is the worth of you assets minus your debt.
Wealth inequality
The wealth gap in the US is even more significant than the income gap.
The top 20% of the pop holds nearly 90% of all the nation’s wealth.
Compared with other economically advanced nations the US ranks first on a measure of economic inequality according to the Gina coefficient.
What caused the US economic inequality?
Factors include technology, globalization, the declining power of unions, tax policies favoring the wealthy, the erosion of social safety nets (access to welfare, public housing, food assistance) and the increasing cost of college.
Declining opportunities for class mobility
Many people believe that the economy is rigged in favor of the elite - the wealthy and politically connected.
Meritocracy
The positions most important to the functioning of society garner the greatest reward in terms of income and prestige.
Those with the most talent rise to the top and are rewarded appropriately.
Rewards excellence instead of family relations.
Income reflects the contribution of the social role to the larger society.
Max Weber
Expanded on Marx’s ideas about classes.
Class position is not just about whether you own capital but also about your own “human capital” (skill set) and social status.
Suggested three traits that determine socioeconomic status - class, status (prestige) and party (position in a political party).
Social stratification
The way valuable goods and desired intangibles (like social status and prestige) are distributed in society.
Structured inequalities
Advantages and disadvantages built into the social institutions of a society
Estate system
Very limited social mobility, but those with the least standing have more freedom than slaves.
Law distributes power and rights on the basis of social standing. Ex. right to vote may be restricted.
Caste
More stringent than the estate form of social stratification.
Rigid systems that confine individuals to social groups for their life.
Tight rules over relationships among castes
Class-based systems
Like in the US members of a given social class share a common economic status and lifestyle.
Offer more mobility and may move up or down the economic ladder.
Social class
Refers to distinctions among groups of people based on income, occupation, and education.
Most scholars have set on 5 - the upper, upper middle, middle, lower/working and lowest.
Social class reproduction process
Members of the upper class ensure that their children maintain their status.
The middle class
One of US’ core beliefs is that the middle class serves as the center of the nation’s economic power and prestige.
Today, however, growing inequalities has led to fewer people on the middle class.
The working class and the poor
Face challenges in meeting living expenses each month.
More than 1/5th is the US cannot pat their monthly bills.
Poverty - Individual $12,140, Fam $25,980
Working class - $24,003 - $45,600
