Chapter 1

Class

A World of Rich and Poor

© 2013 Pearson Education, Inc. All rights reserved.

The Global Divide

• Inequalities between and among Nations– The gap between nations is still greater than

the gap within any single country

• Realities of Global Poverty– The world reached 7 billion people in 2011

• About 1.5 billion are well-off, middle class or above

– Global poverty is declining

© 2013 Pearson Education, Inc. All rights reserved.

Table 1.1 International Comparisons in Income & Well-Being

© 2013 Pearson Education, Inc. All rights reserved.

Table 1.1 International Comparisons in Income & Well-Being

© 2013 Pearson Education, Inc. All rights reserved.

Figure 1.1 Inequality in Selected Countries

© 2013 Pearson Education, Inc. All rights reserved.

Table 1.2 The World’s Billionaires

© 2013 Pearson Education, Inc. All rights reserved.

Table 1.2 The World’s Billionaires

© 2013 Pearson Education, Inc. All rights reserved.

Theories of Class and Economy

• The Wealth of Nations: Adam Smith

• The Misery of Nations: Karl Marx– A growing divide between owners & workers– A continual crisis of profit for owners– Workers driven to the level of subsistence– Solidarity/class-consciousness for workers

• Assessing the Views

© 2013 Pearson Education, Inc. All rights reserved.

Figure 1.2 Child Poverty before and after Government Intervention

© 2013 Pearson Education, Inc. All rights reserved.

Figure 1.2 Child Poverty before and after Government Intervention

© 2013 Pearson Education, Inc. All rights reserved.

Modernization & Dependency Theories

• Modernization theory: time to clean house– Nations today need modern technology– Developing nations need modern ideas– Developing nations need modern institutions

• Dependency theory: get out of my house– Dependency brought exploitation

© 2013 Pearson Education, Inc. All rights reserved.

Modernization & Dependency Theories

– Dependency also brought domination– Dependency brought distortion

• When prehistory repeats itself– Culture of poverty– Fatalism– Exploitation of workers

© 2013 Pearson Education, Inc. All rights reserved.

Ending Extreme Poverty: Markets and Beyond

• Market conundrums

• The ultimate failure of the market can be seen in a basic disjuncture between: – Basic beliefs and everyday life

• One of the most vocal champions of the U.N. Millennium Development goals: – Has been economist Jeffrey Sachs