Problems of Inequality and

Power:

Income

Inequality

By: Angela Baker

Wealth vs. Poverty in Today’s Society

It is very evident in our society today that the distribution of wealth is very lopsided. The so called 1% own a disproportionate amount of the wealth in our society.

The trickle down effect which was supposed to support the everyday worker has not worked as was proposed.

(Raphael, 2002)

Disparity of Income

The richest 1% of adults in the world own 40 percent of the global wealth

The richest 2% of adults in the world own more then half of the global wealth

The richest 10% of adults in the world own 85% of the total global wealth

The poorest half of the world population owns barely 1% of total global wealth.

(Mooney, L., Holmes, M., Knox, D., & Schacht, C.,2013)

Comparison of After Tax Dollars

(Stockman,D, 2003)

How wealthy you are in terms of dollars is not measured by the number of dollars you have, it is measured by the share of dollars that you have out of the total number of dollars in the system Political control and

economic control go hand in hand. If the control of the economy is not in the hands of the majority of the average citizen then neither is political control.

Symbolic Interactionist Perspective

• Focuses on how meanings, labels, and definitions affect the social group being defined

• Labels such as “poor” or “wealthy” carry a stigma

• Stereotypes serve to keep people in their perceived place in society.

• Behaviors, values, and attitudes are transmitted from one generation to the next, perpetuating the cycle

• Definitions of wealth/poverty vary within societies

(Mooney, et al, 2013)

Poverty Stereotyping

Lazy and fat.

Spend all of your free time on social (Facebook, Twitter etc.) and TV

Eat junk food all the time.

Irresponsible and lack motivation

Procrastinate

Cannot read well and are under-educated.

Do not network or volunteer.

Have “it’s not in my job description” syndrome

Wealthy Stereotyping

Hardworking and Industrious

Eat healthy food

Healthy and thin

Live each day in moderation.

Are upbeat, positive and focused on achievement.

Save and don’t spend

Have self control and motivation.

Why Inequality Matters Poverty is a major cause of social tensions and threatens to

divide Canada. When wealth in a country is poorly distributed among its

citizens, it can lead to a destabilization of government and social order.

The presence of a middle class, is gradually being lost in our society. Without a middle class, there is no one to purchase the goods made by society and the economy stagnates as a result.

Factories can’t sell what they are making and downsize, which perpetuates the cycle.

Tension and revolt starts to creep into society via the internet and gradually becomes more mainstream.

(Corley, T.C, 2014)

Social Responses to Inequality

Occupy Movement

The Occupy movement is the international branch of the Occupy Wall Street movement that protests against social and economic equality around the world, its primary goal being to make the economic and political relations in all societies less vertically hierarchical and more flatly distributed (Occupy, 2014).

WE ARE THE 99%

Inequality For All

A documentary that follows former U.S. Labor Secretary Robert Reich as he looks to raise awareness of the country's widening economic gap (Reich, R, 2013).

Video Link:

https://www.youtube.com/watch?v=5Rc3Cbu1i2U

Reducing the Wage Gap

Workplace wage gap strategies can: • Increase retention & reduce turnover of staff • Strengthen recruitment efforts • Lower absenteeism • Decrease workplace stress • Improve workplace morale • Secure a stable workforce • Solve workplace skills needs / shortages These benefits can lead to increased workplace productivity.

Employee benefits include:

• Increased levels of job satisfaction • Improved employee health and well-being • Increased level of engagement at the workplace • Decreased work-related stress • Increased sharing of family responsibility • Improved work-life balance • Wider career diversity for women • Equal pay for work of equal value

(Erjavec, L., 2010)

Solutions Reduce the wage gap

Improve education

Raise the minimum wage

Increase taxes for the very rich

Give workers a say in their companies

Change attitudes and stereotyping with regards to income

In Closing:

It is very evident that we need to end the unequal status that surrounds our economic system. Society needs to create new labels which better describe each individual’s contribution to our global network.

Only by consciously talking about the disparities and by actively lobbying our government can we hope to bring about the changes that are needed. The 1% will not willingly give up their hold on the global supply of money.

This gap did not happen overnight and it won’t likely go away overnight. Let’s work together to solve this puzzle.

Works Cited

Berrebi, D. (2013, May). Causes and effects of poverty on society, children & violence. Retrieved 2014, from Poverties.org: http://www.poverties.org/effects-of-poverty.html

Corley, T. C. (2014, April 17). Wealth and poverty are caused by parenting habits. Retrieved 2014, from Rich Habits: http://richhabits.net/rich-parenting-vs-poverty-parenting/

Erjavec, L. (2010). Taking action, wage gap solutions. Retrieved 2014, from New Brunswick Wage Gap Reduction Initiative: http://www.gnb.ca/0012/Womens-Issues/wg-es/tools/pdf/5-Action_E.pdf

Mooney, L., Holmes, M., Knox, D., & Schacht, C. (2013). Understanding Social Problems. Toronto: Nelson Education Ltd.

Occupy Movement. (2014). Retrieved 2014, from Wikipedia: http://en.wikipedia.org/wiki/Occupy_movement

Raphael, D. D. (2002, June). Poverty Income Inequity and Health in Canada. Retrieved 2014, from Poverty and Human Rights.Org. http://www.povertyandhumanrights.org/docs/incomeHealth.pdf

Reich, R. (2013). The documentary. Retrieved 2014, from Inequality for all.com: http://inequalityforall.com/

Stockman, D. (2003, May 22). Trickle down economics was a Trojan horse. Retrieved 2014, from Rational Revolution: http://rationalrevolution.net/war/trickle_down.htm