Chapter 8

Social Class in the United States

Chapter Outline The American Class Structure Poverty Government-Assistance Programs The Changing Face of Poverty Consequences of Social Stratification Why Does Social Inequality Exist?

Class Structure A social class consists of a category of people

who share similar opportunities, similar economic and vocational positions, similar lifestyles, and similar attitudes and behaviors.

A society that has several different social classes and permits social mobility is based on a class system of stratification.

Class boundaries are maintained by limiting social interaction, intermarriage, and mobility into that class.

Social Classes in the United States Upper class Upper-middle class Lower-middle class Working class Lower class

Question If you were asked to use one of the

following four names for your parents' social class, which would you say they belong in?

A. Upper classB. Middle classC. Working classD. Lower class

Social Classes in the United States

Class Occupation Education

Upper class

Corporate ownership; upper-echelon politics; positions in government

and the arts

Liberal arts education at elite schools

Upper-middle class

Professional and technical fields; managers; officials;

proprietors

College and graduate training

Social Classes in the United States

Class Occupation Education

Lower-middle class

Clerical, Sales, small business semi-

professionals; farmers

High school; some college

Working class

Skilled, manual labor; crafts people; foremen

Grade school; high school

Lower class

Unskilled labor, service work; house- hold work

and farm labor

Grade school; semi-illiterate

Question Bernie is a factory worker and his wife,

Harriet, is a waitress. They dropped out of school in the eleventh grade to get married. They can pay their bills each month but don't have anything left for luxuries. Bernie and Harriet are members of the:

A. lower class.B. working class.C. lower-middle class.D. upper-middle class.

Answer: B Bernie and Harriet are members of the

working class.

Family Income by Quintile, 2004

Income Distribution In 2000, the richest 1/5 of families earned

49.7% of the total income for the year while the poorest 1/5 earned only 3.6%

The richest 20% of American families owns more than 3/4 of all the country’s wealth.

The richest 5% of all families owns more than 1/2 of America’s wealth.

The number of people in poverty grew from 24.5 million in 1978 to 31.1 million in 2000.

Question Many poor people simply don't want to

work hard.

A. Strongly agree

B. Agree somewhat

C. Unsure

D. Disagree somewhat

E. Strongly disagree

Poverty Prefers to a condition in which people do

not have enough money to maintain a standard of living that includes the basic necessities of life.

Between 14 and 45 million Americans live in poverty, but we do not have an unequivocal way to determining how many poor people there are in the U.S.

In 2004, 12.7% of all Americans lived below the poverty level.

Poverty Rates by Race and Hispanic Origin, 1959 to 2004

The Feminization of Poverty A phrase referring to the disproportionate

concentration of poverty among female-headed families. In 2001, a family with both a husband

and wife present had a median income of $60,471.

For a male householder without a wife the figure was $40,715.

For a female householder without a husband it was $28,142.

Single Women With Children 12.7% of all people were below the poverty

line in 2004 and 28.4% of all single women with children were living in poverty.

If trends continue, 60% of all children born today will spend part of their childhood in a family headed by a mother who is divorced, separated, unwed, or widowed.

Almost half of female-headed families with children younger than 18 live below the poverty line.

Income Levels: Individuals and Families Considered to Be Living in Poverty 2004

Size of Unit Income

1 person $ 9,827

2 people 12,649

3 people 14,776

4 people 19,484

5 people 23,497

6 people 27,025

7 people 31,096

8 people 31,778

9 people 36,580

How Do We Count the Poor? The federal government has devised a poverty

index of specific income levels, below which people are considered to be living in poverty.

According to the index, the poverty level for a family of four in 2004 was $19,484.

The poverty index is based solely on money income and does not reflect the fact that many low income people receive noncash benefits such as foodstamps, Medicaid, and public housing.

Calculating Poverty The definition of poverty used for the index was

developed by the Social Security Administration. in 1964.

It was calculated by estimating the average dollar cost of a frugal but adequate diet.

The poverty index was not intended to certify that any individual or family was in need.

Criticisms of the Poverty Index: Overestimates the Poor

1. When the federal government developed the poverty index, about 1/4 of welfare benefits were in the form of goods and services. Today, noncash benefits account for 1/3 of welfare assistance.

2. The poverty measure looks only at income, not assets.

3. Food accounts for a smaller proportion of family expenses today than it did previously.

Criticisms of the Poverty Index: Underestimates the Poor

4. Money used to pay taxes, alimony, child support, health care, or work-related expenses should be excluded when considering assets because these sums cannot be used to buy food or other necessities.

5. There is no geographic cost-of-living adjustment.

6. Poverty status should be determined by comparing a person’s financial situation with that of the rest of society.

Number in Poverty and Poverty Rates, 1959–2004

Myths About the PoorMyth 1: People Are Poor Because They

Are Too Lazy to Work Half of the poor are not of working age. About 40% are under 18; another 10%

are over 65. A person working 40 hours a week at

minimum wage, will not earn enough to lift a family of three out of poverty.

Myths About the Poor

Myth 2: Most Poor People Are Minorities, and Most Minorities Are Poor Most poor people are white, because

there are many more whites than minorities in the U.S.

The poverty rate remains considerably higher for African Americans and Hispanics than whites.

Myths About the PoorMyth 3: Most of the Poor Are Single Mothers With

Children 60% of mothers receiving assistance have

never married, however, most people in poverty live in other family arrangements: 1/3 live in married couple families. Nearly 1/5 live alone or with nonrelatives. The remainder live in a male-headed or

other family setting.

Myths About the PoorMyth 4: Most People in Poverty Live in the Inner

Cities In 2002, the poverty rate in rural areas was

14.2% compared with 11.6% in urban areas. Rural residents have higher unemployment

rates and earn lower wages than urban residents.

Rural residents tend to have below-average educational levels and limited job skills.

Myths About the PoorMyth 5: Welfare Programs for the Poor Are

Straining the Federal Budget Since welfare reform in 1996, the number of

families receiving aid has decreased by 50%. Assistance programs for the poor cost the

federal government 1/3 as much as other types of assistance.

Social Security and Medicare mainly go to middle-class Americans, not the poor.

Question The poor are poor because the

American way of life doesn't give all people an equal chance.

A. Strongly agreeB. Agree somewhatC. UnsureD. Disagree somewhatE. Strongly disagree

Government Assistance Programs Government programs that provide

benefits to families or individuals can be divided into two categories: social insurance and cash benefits

going to people of all income levels

means-tested programs and cash assistance going only to the poor.

Poverty Rates for People over 65 and under 18, 1960–2004

Consequences of Social Stratification Low-income mothers are more likely to

have low birth-weight babies. The poor have a lower life expectancy,

regardless of race or ethnicity. Babies born in poverty are significantly

more likely to die before their first birthday.

Consequences of Social Stratification For the same criminal behavior, the poor are:

More likely to be arrested. If arrested, more likely to be charged. If charged, more likely to be convicted. If convicted, more likely to be sentenced to

prison. If sentenced, more likely to be given longer

prison terms than the middle and upper classes.

Child Poverty Rates in Rich Countries

Functionalist Theory of Stratification Views social stratification as a social

necessity. Different positions in society make

different levels of contributions to society. Filling the more important positions in

society requires talent that is scarce and has more training.

Conflict Theory of Stratification: Marx Stratification is the outcome of a struggle

for dominance between: the bourgeoisie, the owners of the

means of production the proletariat, or working class.

Marx believed the moving force of history was class struggle, or class conflict.

Marx: Distribution of Wealth Marx believed that people’s lives are centered

on how they deal with the material world. Wealth can be distributed in at least four

ways:1. To each according to need. 2. To each according to want. 3. To each according to what is earned. 4. To each according to what can be obtained

—by whatever means.

Max Weber Believed there were three sources of

stratification: Economic class Social status Political power.

Economic classes arise out of the unequal distribution of economic power.

Marx and Weber Weber agreed with Marx on the

following issues related to stratification:1.Group conflict is a basic ingredient of

society.2.People are motivated by self-interest.3.Those who do not have property can

defend their interests less well than those who have property.

Marx and Weber4. Economic institutions are of

fundamental importance in shaping the rest of society.

5. Those in power promote ideas and values that help them maintain their dominance.

6. Only when exploitation becomes extremely obvious will the powerless object.

Question Which of the following is not a view of social

stratification that was shared by Marx and Weber?

A. People are motivated by self-interest.B. Economic institutions are of fundamental

importance in shaping society.C. Those in power promote ideas and values

that help them maintain dominance.D. The belief that conflict and inequality will

ultimately be eliminated.

Answer: D The belief that conflict and inequality

will ultimately be eliminated is not a view of social stratification that was shared by Marx and Weber.

Modern Conflict Theory: 5 Aspects

1. Social inequality emerges through the domination of groups by other groups.

2. Those who are dominated have the potential to express resistance toward those in power.

3. Conflict will most often center on the distribution of property and political power.

Modern Conflict Theory: 5 Aspects

4. What are thought to be the common values of society are really the values of the dominant groups.

5. Because those in power are engaged in exploitative relationships, they must find mechanisms of social control to keep the masses in line.

Comparison of Functionalist and Conflict Views of Social Stratification:

Functionalist ConflictStratification is universal, necessary, and inevitable.

Stratification may be universal without being necessary or inevitable.

Social organization shapes the stratification system.

The stratification system shapes social organizations.

Stratification arises from the societal need for integration, coordination, and cohesion.

Stratification arises from group conquest, competition, and conflict

Comparison of Functionalist and Conflict Views of Social Stratification:

Functionalist ConflictStratification facilitates the optimal functioning of society and the individual.

Stratification impedes the optimal functioning of society and the individual.

Stratification is an expression of commonly shared social values.

Stratification is an expression of the values of powerful groups.

Power usually is distributed legitimately in society.

Power usually is distributed illegitimately in society.

Comparison of Functionalist and Conflict Views of Social Stratification:

Functionalist ConflictTasks and rewards are allocated equitably.

Tasks and rewards are allocated inequitably

The economic dimension is subordinate to other dimensions of society.

The economic dimension is paramount in society.

Stratification systems generally change through processes.

Stratification systems often change through revolutionary evolutionary processes.

Quick Quiz

1. Which of the following is a characteristic of a class system of stratification?

A. Class systems are usually found in preindustrial societies.

B. Social mobility is not permitted.

C. Class systems encourage striving and achievement.

D. All of these choices are correct.

Answer: C The following is a characteristic of a class

system of stratification: Class systems encourage striving

and achievement.

2. Which of the following is not a myth about the poor in America?

A. Most people in poverty live in the inner city.

B. Most of the poor are single mothers with children.

C. People are poor because they are too lazy to work.

D. Most poor people are white.

Answer: D “Most poor people are white” is not a

myth about the poor in America.

3. Harry is a bank president and his wife, Cathy, owns a successful gardening business. They own a home in the suburbs, and both are college graduates. They expect their two children to attend college in a few years. Harry and Cathy are members of the:

A. upper class. B. upper-middle class.C. lower-middle class.D. working class.

Answer: B Harry and Cathy are members of the

upper-middle class.

4. The functionalist perspective of social stratification suggests that:

A. stratification is not necessary.

B. wealth should be distributed according to the needs of each person.

C. unequal rewards are necessary to make sure the important positions in society are filled.

D. stratification is the result of group competition.

Answer: C The functionalist perspective of social

stratification suggests that unequal rewards are necessary to make sure the important positions in society are filled.