Chapter 6
Poverty and Economic Inequality
Chapter Outline
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The Global Context: Poverty and
Economic Inequality around the World
Sociological Theories of Poverty and
Economic Inequality
Economic Inequality and Poverty in the
United States
Chapter Outline
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Consequences of Poverty and Economic
Inequality
Strategies for Action: Antipoverty Programs,
Policies, and Proposals
Understanding Poverty and Economic
Inequality
Defining and Measuring
Poverty
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Poverty is the lack of resources necessary for
material well-being: food, water, housing, land,
and health care.
Lack of resources that leads to hunger and
physical deprivation is absolute poverty.
Relative poverty refers to a deficiency in
material and economic resources compared
with some other population.
Poverty
•
Washington, DC, the
capitol of one of the
wealthiest nations in
the world, has one of
the highest rates of
poverty in the United
States.
Poverty Thresholds: 2006
(Householder Younger Than 65)
Household Makeup
Poverty Threshold
One adult
$10,488
Two adults
$13,500
One adult, one child
$13,896
Two adults, one child
$16,227
Two adults, two children
$20,444
Human Poverty Index (HPI)
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Based on three measures of deprivation:
1. Deprivation of life.
2. Deprivation of knowledge.
3. Deprivation in living standards.
Global Poverty and
Economic Inequality
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More than one-fourth of the world’s population
live on less than $2 a day and about 1 billion
people live on less than $1 a day.
Every day, nearly 1 in 5 of the world’s
population goes hungry.
The richest 1 percent in the world own 40% of
global household wealth; the richest 2% own
more than half of global wealth; and the richest
10% own 85% of total global wealth.
Structural-Functionalist
Perspective
Poverty and economic inequality serve positive
functions for society:
• Low-paid, poor workers are willing to do dirty,
dangerous, difficult work others refuse to do
• Poverty provides work for those in “poverty
industry” (e.g. welfare workers).
• Poor people provide market for inferior
goods.
Culture of Poverty
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Institutional breakdowns create a “culture
of poverty” whereby the poor develop
norms, values, beliefs, and self-concepts
that contribute to their own plight.
Characterized by female-centered
households, an emphasis on gratification
in the present rather than in the future and
a lack of participation in social institutions.
Compensation
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Forbes magazine reported that Apple CEO Steven Jobs
earned $646.6 million in total compensation in 2006.
In contrast, a U.S. Army General makes an annual
salary of between $168,000 and $204,000.
Conflict Perspective
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Economic inequality results from bourgeoisie
exploiting proletariat.
Corporations and the wealthy buy political
influence.
Free-market reform policies benefit wealthy
corporations and investors, but increase
poverty.
Wealthfare - Laws and policies that benefit
corporations and the wealthy.
Symbolic Interactionist
Perspective
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Persons who are labeled “poor” are
stigmatized as lazy; irresponsible; lacking
in motivation, ability, and morals.
Wealthy persons are viewed as capable,
hard working, motivated, deserving of
wealth.
What Do You Think?
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The poor in the United States have low rates of
voting and thus have minimal influence on
elected government officials and the policies
they advocate.
Why do you think the poor are less likely to vote
than those in higher income brackets?
What strategies might be effective in increasing
voter participation among the poor?
Economic Inequality in the
U.S.
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In 2005, the top 1% of U.S. households with the
highest incomes received 21.8% of all income,
representing their largest share of national
income since 1928.
The top 10% of Americans collected 48.5% of
all reported income in 2005.
The top 300,000 Americans in 2005 collectively
received as much income as the bottom 150
million Americans.
Wealth
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Total assets minus debts.
Wealth includes the value of a home,
investments, real estate, the value of
cars, life insurance (cash value), stocks,
bonds, mutual funds, trusts, checking and
savings accounts, individual retirement
accounts (IRAs), and valuable
collectibles.
U.S. Poverty Rates by Age, 2005
Age
Poverty Rate
Under 18
17.6
18 to 64
11.1
65 and older
10.1
All ages
12.6
Feminization of Poverty
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Women are more likely than men to live below
the poverty line—a phenomenon referred to as
the feminization of poverty.
The 2005 poverty rates for U.S. women and
men were 14.1% and 11.1%, respectively
Women are less likely to pursue advanced
degrees and tend to have low paying jobs.
However, even with the same level of education
and occupational role, women earn much less
than men.
Relationship Between
Education and Poverty: 2005
U.S. Poverty Rates by Family
Structure, 2005
U.S. Poverty Rates by Race
and Hispanic Origin, 2005
Awareness of Poverty
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Students across the country participate in Hunger
Banquets—an event created by Oxfam, an organization
dedicated to eliminating hunger and poverty.
Based on worldwide statistics, 55% of the attendees are
randomly chosen to receive rice and water, 30% receive
beans and rice, and 15% receive a full-course meal.
Natural Disasters and
Poverty
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Natural disasters, such as the December 2004
tsunami, are more devastating to the poor, who
lack resources to cope with and recover from
devastation.
Natural Disasters and
Poverty
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Many of the more than 1,300 people who died
in the wake of Hurricane Katrina were poor.
Educational Problems and
Poverty
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Children from poor families score lower
on tests of cognitive skill.
Poor children often go to inferior schools.
Poor parents have fewer resources to
provide educational experiences for their
children.
Family Stress and Parenting
Problems
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Stresses associated with low income contribute
to substance abuse, domestic violence, child
abuse and neglect and divorce.
Poor parents are more likely to leave children at
home alone.
Poor adolescent girls are more likely to have
babies as teenagers or become young single
mothers.
Characteristics of the
Homeless in U.S. Cities
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51% are single men
30% are families with children
16% are mentally ill
13% are employed
9% are veterans
17% are single women
2% are unaccompanied minors
26% are substance abusers
Couch-homeless
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Individuals who do not have a home of
their own and who stay at the home of
family or friends.
The Homeless
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More than 70,000 people in the United States
alone are homeless each night.
Intergenerational Poverty
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Problems associated with poverty (health
and educational problems) create a cycle
of poverty from one generation to the
next.
Public Assistance and Welfare
Programs in the United States
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Many public assistance programs are meanstested, households are not eligible unless
income and/or assets fall within guidelines.
Government assistance programs for the poor
include Supplemental Security Income,
Temporary Assistance to Needy Families
(TANF), food programs, housing assistance,
medical care, educational assistance, child
care, child support enforcement, and the
earned income tax credit (EITC).
Public Assistance and Welfare
Programs in the United States
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Temporary Assistance to Needy Families
(TANF) - Created in 1996, provides minimum
monthly income to single parents and their
children.
Public housing - Provides federally subsidized
housing owned and operated by local public
housing authorities.
Earned income tax credit (EITC) - A refundable
tax credit based on a working family's income
and number of children.
Housing
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Housing prices in
Fairfax County,
Virginia, grew 12
times as fast as
household incomes.
In response, Fairfax
began offering
housing subsidies to
families earning
$90,000 a year.
Welfare Myths and Realities
Myth: People receiving welfare are lazy.
Realities:
• Unemployed welfare recipients experience
barriers that prevent them from working: poor
health, job scarcity, lack of transportation, lack
of education, and/or the inability to pay for child
care.
• Over half of adults receiving TANF in 2005
participated in work.
Welfare Myths and Realities
Myth: Most welfare mothers have many children.
Reality:
Mothers receiving welfare have no more
children than mothers in the general population.
• In year 2005 the average number of individuals
in TANF families was 2.4, including an average
of 1.8 children. The average size of households
receiving food stamps in 2005 was 2.3.
% Individuals Below Poverty Level in
Households That Receive Assistance: 2005
Type of Assistance
Percentage
Total
67.8
Receiving cash assistance
20.9
Receiving food stamps
37.9
Medicaid
54.7
Public or subsidized housing
17.3
Living-wage Laws
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Require state or municipal contractors,
recipients of public subsidies or tax
breaks, or, in some cases, all businesses
to pay employees wages significantly
above minimum wage, enabling families
to live above poverty line.
Chapter 7
Work and Unemployment
Chapter Outline
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The Global Context: the Economy in the
21st Century
Sociological Theories of Work and the
Economy
Problems of Work and Unemployment
Strategies for Action: Responses to
Workers' Concerns
Understanding Work and Unemployment
Unemployment
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Unemployment can lead
some people to
desperation.
Timothy Bowers
committed a bank
robbery because he
couldn’t find a job and
wanted to be in prison
until he was old enough
to collect Social Security.
Economic Institution
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The structure and means by which a
society produces, distributes, and
consumes goods and services.
The global economy is an interconnected
network of economic activity that
transcends national borders and spans
the world.
Socialism and Capitalism
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Socialism
• Economic system in which the means of
producing goods and services are collectively
owned.
Capitalism
• Economic system in which private individuals
or groups invest capital to produce goods
and services to sell for a profit in a
competitive market.
Industrialization
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Industrialization altered the nature of work,
Machines replaced hand tools; and steam,
gasoline, and electric power replaced human or
animal power.
It led to the development of the assembly line
and an increased division of labor as goods
began to be mass produced.
Instead of the family-centered economy
characteristic of an agricultural society, people
began to work outside the home for wages.
Post-industrialization
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The shift from an industrial economy
dominated by manufacturing jobs to an
economy dominated by service-oriented,
information intensive occupations.
Characterized by a highly educated
workforce, automated and computerized
production methods, increased
government involvement in economic
issues, and a higher standard of living.
Three Work Sectors
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Primary - production of raw materials and
food.
Secondary - production of manufactured
goods from raw materials.
Tertiary - professional, managerial,
technical-support, and service jobs.
McDonaldization
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Sociologist Ritzer uses the term to describe
how the fast food industry applies to work:
1. Efficiency. Tasks are completed efficiently.
2. Calculability. Size, cost, and time are more
important than quality.
3. Predictability. Products are standardized
4. Control through technology. Automation
replaces human labor.
Free Trade Agreements
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Pacts between countries that make it
easier to trade goods across national
boundaries.
• Reduce foreign restrictions on exports
• Reduce taxes on imported goods
• Prevent technology from being copied
through intellectual property rights.
Transnational Corporations
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Corporations that have their home base in
one country and branches, or affiliates, in
other countries.
The top 100 economies around the world
are transnational corporations rather than
nations.
Transnational Corporations
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The combined yearly revenues of the
largest corporations are greater than
those of 182 nations, which are home to
more than 4/5 of the world’s population.
3 to 6 transnational corporations control
85–90% of wheat, corn, coffee, cotton,
and tobacco exports, 90% of forest
product exports, and 90% of iron ore
exports.
Multinational Corporations
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Halliburton, the
Pentagon’s largest
private contractor in Iraq,
has operations in more
than 120 countries.
In 2007, Halliburton
announced it was moving
its headquarters from
Texas to Dubai—a taxfree zone that has lured
about 1/4 of Fortune 500
companies.
Structural-Functionalist
Perspective
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Economic institution provides basic
necessities (food, shelter) common to all
societies.
After survival needs of a society are met,
surplus wealth/materials may be allocated
for social uses: military, education,
recreation.
Symbolic Interactionist
Perspective
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One's work role is central part of one's
identity (occupation is master status).
Meanings and definitions influence
behavior - in some countries children
learn to regard working as a necessary
responsibility rather than an abuse of
human rights.
Forced Labor and Slavery
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Worldwide at least 12.3 million people
are victims of forced labor, any work
performed under threat of punishment
and undertaken involuntarily.
Chattel slavery is an old form of slavery
in which slaves are considered property
that could be bought and sold.
Slavery
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Slavery expert Kevin Bales explained that
slavery is linked to three factors:
1. Rapid growth in population in the developing
world.
2. Social and economic changes that have
displaced rural dwellers to urban centers.
3. Government corruption that allows slavery to
go unpunished, even though it is illegal in
every country.
Forced Labor
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Forced prison labor is a type of forced labor that
is controlled by the state. Forced prison labor is
particularly widespread in China.
Sweatshop Labor in the U.S.
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Work environment characterized by:
• less than minimum wage
• excessively long hours
• unsafe conditions
• abusive treatment by employers
• Lack of organizations aimed at
negotiating better working conditions.
Sweatshop Labor
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Sweatshop labor commonly occurs in the
garment industry.
Reality of Sweatshops
Health and Safety Hazards in
the U.S. Workplace
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In 2005, 5,702 U.S. workers died of fatal
work-related injuries.
Industries with the highest rates of fatal
injuries include agriculture, mining and
construction.
The Bureau of Labor Statistics reported
4.4 million nonfatal occupational injuries
and illnesses in private industry in 2003.
Causes of Workplace Fatalities,
2005
Cumulative Trauma
Disorders
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Muscle, tendon, vascular, and nerve
injuries that result from repeated or
sustained actions or exertions of different
body parts.
Job Stress
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In a national sample of U.S. employees 26% felt
“overworked” and 27% felt “overwhelmed” by
how much work they had to do in the past
month.
Prolonged job stress can cause or contribute to
physical and mental health problems, such as
high blood pressure, ulcers, headaches,
anxiety, and depression.
1/2 of the U.S. workforce has no paid sick
leave and 1/4 has no paid vacation.
Job Burnout
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Prolonged job stress that can cause or
contribute to high blood pressure, ulcers,
headaches, anxiety, depression, and
other health problems.
Working on Vacation
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This man,
vacationing on the
Greek island of
Santorini, is among
the one in five U.S.
workers who works
while on vacation.
Alienation
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The condition that results when workers
perform repetitive, monotonous work
tasks, and they become estranged from
their work, the product they create, other
people, and themselves.
Work-Family Concerns
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In nearly two-thirds of married couples with
children younger than age 18 and in more than
half of married couples with children younger
than age 6, both parents are employed.
72% of women in female-headed single-parent
households and 84% of men in male-headed
single-parent households are employed.
About 3.3 million children younger than age 13
are left without adult supervision for a period of
time each week.
U.S. Unemployment Rates:
2000-2005
Unemployment
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The corporate practice of laying off large
numbers of employees is called corporate
downsizing.
Relocation of jobs to other countries
where products can be produced more
cheaply is called job exportation.
Unemployment
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In 2000 the U.S. unemployment rate dipped to a
31-year low of 4%, and in 2005 it was 5.1%.
Causes of unemployment:
• Job exportation - Relocation of jobs to other
countries where products can be produced
more cheaply.
• Automation - Replacement of human labor
with machinery and equipment.
• Increased global competition
Long-term Unemployment
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The long-term unemployment rate refers
to the share of the unemployed who have
been out of work for 27 weeks or more.
• In 2005, 1 in 5, of the unemployed in
the United States had been out of work
for six months or more.
Shares of Long-term
Unemployment by Education
Underemployment
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Underemployment includes unemployed
workers as well as:
• Those working part-time but who wish to
work full-time.
• Those who want to work but have been
discouraged from searching by their lack of
success.
• Others who indicate that they want and are
available to work and have looked for
employment in the last 12 months.
Chapter 8
Problems in Education
Chapter Outline
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The Global Context: Cross-cultural Variations In
Education
Sociological Theories of Education
Who Succeeds? The Inequality of Educational
Attainment
Problems In The American Educational System
Strategies For Action: Trends And Innovations
In American Education
Understanding Problems in Education
Cross-Cultural Variation In
Education
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The United States has more than 100,000
schools, 4.4 million primary and
secondary school teachers and college
faculty, 5 million administrators and
support staff, and 72.1 million students.
There are 781 million illiterate adults
around the world, and 100 million children
have little or no access to schools.
Youth Illiteracy Rates
by Region and Sex, 2006
Structural-Functional
Perspective
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Education serves important functions:
• Instruction
• Socialization
• Sorting individuals into various statuses
• Custodial care
Multicultural Education
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Education that includes all racial and
ethnic groups in the school curriculum
thereby promoting awareness and
appreciation for cultural diversity.
Unemployment Rate of Individuals 25
or Older by Level of Education, 2007
Conflict Perspective
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Educational institution solidifies class positions
and allows the elite to control the masses.
Quality education and educational opportunities
are not equally distributed.
Education provides indoctrination into the
capitalist ideology.
• Cultural imperialism - Indoctrination into the
dominant culture of a society.
Conflict Perspective
Education perpetuates racial inequality:
• Gross inequalities between poor districts
and middle-and upper-class districts.
• Schools in poor districts have inadequate
facilities, materials, and personnel.
Symbolic Interactionist
Perspective
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Concerned with the individual and smallgroup issues in education:
• Teacher-student interactions
• Student self-esteem
• Self-fulfilling prophecy - Occurs when
people act in a manner consistent with
the expectations of others.
The Self-fulfilling Prophecy
Rosenthal and Jacobson experiment:
• Five random elementary school students
were labeled as having superior
intelligence and ability.
• Teachers expected them to do well and
treated them in a way that encouraged
better school performance.
Highest Level of Education Attained by
Individuals 25 and Older, 2005
Head Start
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Begun in 1965 to help preschool children
from the most disadvantaged homes,
Head Start provides an integrated
program of health care, parental
involvement, education, and social
services for qualifying children.
U.S. Expenditures for Elementary
and Secondary Education
Per Pupil Expenditure
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As shown above, the per pupil expenditure varies
dramatically by socioeconomic status of the school
district. In 2005–2006, the average per pupil
expenditure was $8,701.
Reasons for Lower
Educational Achievement
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Low-income parents are less likely to
expect their children to go to college.
Low-income parents are less likely to be
involved with child’s education.
Low-income parents are often themselves
low academic achievers.
Race and Ethnicity
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In 2004, 43% of public school students were
racial or ethnic minorities.
In comparison to whites, Hispanics and blacks
are less likely to succeed in school at almost
every level.
By fourth grade, 41% of whites compared with
15% of Hispanics and 13% of blacks are
reading at grade level; by eighth grade, 35% of
whites, 12% of Hispanics, and 7% of blacks are
performing at grade level in mathematics.
Educational Attainment by
Race, Ethnicity, and Sex
1970
2005
4 or more years of
high school
Males
Females
Males
Females
White
54
55
85.2
86.2
Black
30.1
32.5
81.1
81.2
Hispanic
37.9
34.2
58
58.9
Asian
NA
NA
90.4
85.1
Total
51.9
52.8
84.9
85.4
Educational Attainment by
Race, Ethnicity, and Sex
1970
2003
4 years of college or
more
Males
Females
Males
Females
White
14.4
8.4
29.4
26.7
Black
4.2
4.6
16.1
18.8
Hispanic
7.8
4.3
11.8
12.1
Asian
NA
NA
54
46.7
Total
13.5
8.1
28.9
26.5
Bilingual Education
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The debate over bilingual education is likely to
grow. By 2040 less than half of all school-age
children will be non-Hispanic whites.
Total Immersion
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An educational program, in which
students, particularly elementary age
students, receive literacy and
communication instruction entirely in a
foreign language, usually Spanish.
Integration Hypothesis
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A theory that the only way to achieve
quality education for all racial and ethnic
groups is to desegregate the schools.
Composition of Schools Attended by the
Average Student of Each Race, 2003–04
Race in Each
School
White
Asian
Native
American
White
78
30
28
45
44
Black
9
53
12
12
7
Latino
9
13
55
20
11
Asian
3
3
5
22
3
Native
American
1
1
1
1
35
Black Latino
Gender and Education
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Worldwide women receive less education
than men.
An estimated 780 million adults in the
world are illiterate, and two-thirds of them
are women.
According to a United Nations report, 115
million children worldwide are not in
school and the majority of them are girls.
Gender and Education in the
U.S.
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In 1833 Oberlin College in Ohio became the
first college in the U.S. to admit women.
• Female students at Oberlin were required to
wash male students’ clothes, clean their
rooms, and serve their meals and were
forbidden to speak at public assemblies.
Title IX of the Education Amendments of 1972
states that no person shall be discriminated
against on the basis of sex in any educational
program receiving federal funds.
School Dropouts
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The status dropout rate is the percentage of
an age group that is not in school and has not
earned a high school degree or its equivalent.
• In 2004, the status dropout rate for 16- to 24year-olds was 10%, down from 15% in 1972.
The event dropout rate is the percentage of
students who drop out of high school each year.
• Most researchers set this rate at between 30
and 50%.
Status Dropout Rates of 16- to 24year-olds, by Race/ethnicity
Reasons for Dropping
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In focus groups and a survey, respondents
identified five reasons for dropping out of high
school:
1. Classes were not interesting
2. Missed too many days and can’t catch up
3. Spent time with people who were not
interested in school
4. Had too much freedom, not enough rules
5. Was failing in school
Violence in the Schools
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in the 2004–2005 school year there were 56
million students enrolled in primary and
secondary schools.
During the same time period there were 21
school-related homicides and 7 suicides—one
homicide or suicide per 2 million students
between the ages of 5 and 18.
In 2004, there were 1.4 million nonfatal crimes
committed against 12- to 18-year-olds, with the
most common, 62%, being theft.
Bullying
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Inherent in a relationship between
individuals, groups, or individuals and
groups, bullying entails an imbalance of
power that exists over a long period of
time in which the more powerful intimidate
or belittle others.
Cyberbullying
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The use of electronic devices (e.g.
websites, e-mail, instant messaging, text
messaging) to send or post negative or
hurtful messages or images about an
individual or a group.
Condition of Our Schools
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More and more school
buildings and facilities
are in need of repair.
Mold, defective
ventilation systems,
faulty plumbing, and the
like are not uncommon.
Quality education is
expected to continue in
the classrooms despite
deplorable conditions.
Recruitment and Retention of
Quality Teachers
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With a national average turnover rate of 15.7%
in 2004, each year school systems open the
new academic year without enough teachers.
Research indicates that in an average school
year, approximately 1,000 teachers resign from
their positions every day with more than 30% of
new teachers leaving the profession within the
first 5 years.
Recruiting Teachers
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Across the nation,
school system
representatives
attend teacher job
fairs at colleges and
other venues to
recruit highly qualified
teachers for their
local school districts