Outline

Globalization Video
 “Winners

and Losers”
Social Stratification
 Thinking
Systematically about
“Winners and Losers”

Distribution of Income &
Wealth…
 Krugman
on “Winners and Losers”
Now Video on Globalization and PA


PASTOR FRED CRAWFORD: “Everybody can't own
the company. So some people have to get very rich
for other people to make a decent living. And we
just don't... we're not those folks.”
He’s a Pastor…but he sounds like a sociologist
Class in America





HARTFORD, Conn. — A 36-year-old Swedish countess divorcing a former CEO says
she cannot live on $43 million.
Marie Douglas-David, a former investment banker, says she has no income and
needs her 67-year-old husband, George David, to pay her more than $53,000 a
week _ more than most U.S. households make in a year _ to cover her expenses.
David stepped down last year as chief executive at Hartford-based United
Technologies Corp. but is still chairman of the board and has an estimated net
worth of $329 million...
Douglas-David has filed court papers showing she has more than $53,800 in
weekly expenses, including for maintaining a Park Avenue apartment and three
residences in Sweden. Her weekly expenses also include $700 for limousine
service, $4,500 for clothes, $1,000 for hair and skin treatments, $1,500 for
restaurants and entertainment, and $8,000 for travel.
At that rate, Douglas-David would burn through $43 million in less than 16 years.
The Census Bureau estimates that the median U.S. household income in 2007 was
just over $50,000. (HP March 19 2009)
Class in America

THE tale of Lisa Bonder Kerkorian, the 36-year-old former tennis
pro who is demanding $320,000 a month in child support from
her former husband, the 84-year-old billionaire Kirk Kerkorian,
has caused a stir among hard-working Americans. Mrs. Kerkorian,
who was married to Mr. Kerkorian for one month in 1998, filed
court papers on Jan. 7 seeking support for their daughter, Kira,
3. Among other things, she wants $14,000 a month for parties
and play dates; $5,900 for eating out; $4,300 for eating in;
$2,500 for movies and other outings; $7,000 for charitable
donations; $1,400 for laundry and cleaning; $1,000 for toys,
books and videos; $436 for the care of Kira's bunny rabbit and
other pets; and $144,000 for travel on private jets. Sure, that
sounds like a lot of Taco Bell for a 3-year-old, but Mrs. Kerkorian
will need every penny.
(NTY 2002)
Class in America

Katie and Todd Clarke of Parkersburg know the feeling. The
paycheck Katie earns on $10.90 an hour as a secretary isn't
enough to cover all of the family's expenses. Food takes priority;
money left over goes to whichever bill collectors threaten to cut
off services first.
"There's no way to pay it all," said Katie Clarke. A mental illness
keeps Todd from working.
The Clarkes and Bergers are like thousands of Iowans who work
hard without getting ahead. Many of these families will cover
their basic monthly expenses and have little, often nothing, left
over. Most are white, between 19 and 64 years old. Many have
a high level of education, and they're often single women.
http://www.wcfcourier.com/articles/2005/04/04/news/top_story/bd7b5d0be02b283386256fd9004ea9b2.txt
Why/How Does This Happen?

Social Stratification- study of systematic inequalities between
groups of people that arise in a society. (D)

Inequalities not simply due to differences in talent or effort

Stratification is universal, but variable

Age, Race, Class, Gender…For example:





Native Americans, no income inequality, but elders had more power…
South up until the1960s, inequality based on race
Saudi Arabia today, inequality based on gender
America today…inequality between the classes
People who study social stratification address the basic question: Who,
gets what, and why?


What? = Prestige, respect, income, wealth, education, land, etc.
Why?= Requires analysis of social structure…norms & institutions
Social Stratification


Consider stratification and the Titanic…1,600
people died
Was it random? Or were certain people more
likely to be saved?
Social Stratification and Death

Consider the Titanic…1,600 people died
 60%
of first class passengers were saved
 36% of second class passengers were saved
 24% of third class passengers were saved

Did 1st Class passengers survive at higher rates
because of talent, skill or effort?
Social Stratification and Death

Consider the Titanic…1,600 people died
60% of first class passengers were saved
 36% of second class passengers were saved
 24% of third class passengers were saved



Did 1st Class passengers survive at higher rates
because of talent, skill or effort?
System of stratification existed on ship

“Class was a matter of life and death.”


(Macionis)
1st Class warned first…cabins closer to life boats…put on boats first
It had nothing to do with talent, skills, effort & merit
Stratification as a Trait of Society


Think of society as a parking lot at the supermarket with
100 spots and 100 people looking for spots…
No matter what, some won’t get spots near the door; it’s
just not possible


No matter how talented, how hard they try, how much personal
responsibility is taken…some will not be near the door
Sociologists who study stratification examine this process
Stratification as a Trait of Society



Stratification is about more than personal responsibility, talent,
merit and effort…it is systemic.
Imagine an Ambition pill that all Americans took every
morning…the pill made provided unlimited effort and talent
Could everyone have a high status, high skill job?
Doctor, Manager, Business Owner, Judge, etc.
Stratification as a Trait of Society



Stratification is about more than personal
responsibility, talent, merit and effort…
Could everyone have a high status, high skill job?
Doctor, Business Owner, Principal Judge, etc.
Stratification would still exist… society will always
need someone to nurse the patients, bake the bread,
teach the children, clean the offices, police the
streets, etc.
Who gets what and why…



PASTOR FRED CRAWFORD: “Everybody can't own the
company. So some people have to get very rich for
other people to make a decent living. And we just
don't... we're not those folks.”
In this new globalized world of ours, “Who gets what”
“The arguments are fiercest where the facts are
fewest.”
 William
James…famous dead psychologist and
philosopher
Income & Wealth

Income-money, wages, and payments that are
periodically received from investments (D)


For most people a paycheck
Income is primary source of survival for most

80% of us are production and non-supervisory workers who
depend primarily on a paycheck to make ends meet

Factory workers, cops, construction workers, teachers, cashiers, nurses,
secretaries, cooks, janitors, computer technicians, social workers,
engineers etc.
Income & Wealth

Wealth-assets, particularly those that are income
producing. (D)
 For
 But
most people their home…
for some people a second home in the Hamptons or
Virgin Islands, an apartment in London, a Van Gogh,
race horses, shopping malls, hotels, ships, sports teams,
bonds, stocks, cash reserves, etc.
Income and Wealth

So how are income and wealth distributed among a
society’s population…
 How
do we divide the pie?
This American life…

Income…

10 Volunteers Up Front…
Ten people…one person gets 50% of
the pay on payday…
The “Middle Class Squeeze”


Trends like this…along with the data on mobility
have given rise to a concept
Middle class squeeze

tendency of those of the middle or intermediate
classes to be pushed either upward, or more
commonly, downward in terms of wages,
salaries and family income (D)
(p.119,384)

Let’s explore…
Winners and Losers

Income Inequality Today
Outline

Distribution of Income & Wealth…






Paul Krugman, “The Great Divergence”
Median income
Explaining the trends
 Norms and Institutions
A note on statistics…
Videos should be on line next week…will keep you
posted
Always posting new readings so be sure to hit refresh
when you visit the reading page
Quiz
1.
A.
B.
C.
D.
The chapter written by Paul Krugman titled “The Great
Divergence”described research showing that the economic gap
between:
the rich and all other classes in America has increased
dramatically over the past several decades
the middle class and rich in the US is shrinking as middle class
families grow richer
America and Latin America has increased dramatically due to
globalization
America and Latin America has decreased dramatically due to
globalization
Bonus





In the reading by Paul Krugman he discussed the “Great
Compression” that America experienced. This concept refers to:
A. the substantial reduction in inequality during the New Deal
B. the substantial reduction in inequality during the presidency
of Ronald Reagan
C. the pressure being put on middle class families by changes in
the economy
D. the increased concentration of wealth in the hands of the
upper class
The “Middle Class Squeeze”


Trends like this…along with the data on mobility
have given rise to a concept
Middle class squeeze

tendency of those of the middle or intermediate
classes to be pushed either upward, or more
commonly, downward in terms of wages,
salaries and family income (D)
(p.119,384)

Let’s explore…
US Government Occupational Outlook
Projections: Top 10 Largest Job Growth

How many
require a
college
education?
An Hourglass Economy: 2010

Four of the ten do
not pay enough to
lift a family of four
out of poverty
Weekly Pay for the Ten Occupations That
Will Add the Most Jobs Through 2010
U.S. Median Weekly Wages in 2000
1. Food preparation &
serving (includes fast food).
2. Customer service
representatives.
$261
$336
$336==4-person
4-personfamily
familypoverty
povertyline
line
$473
$862
3. Registered nurses.

One just barely
pays enough…
$321
4. Retail salespersons.
5. Computer support
specialists.
$701
$278
6. Cashiers (except gaming).
$406
7. Office clerks, general.
$338
8. Security guards.
9. Computer software
engineers, applications.

Winners and Losers:
you can only work
the jobs that a
society provides
$1,901
$257
10. Waiters and waitresses.
$0
$500
$1,000
$1,500
Source: U.S. Bureau of Labor Statistics. Based on hourly earnings and a 40-hour week.
$2,000
7
Reading this Week


“Recession's toll: Most recent college grads
working…”
What was this article about?
Sociological Imagination


“When coupled with heavy student loan
obligations, it's no wonder that 40 percent of
seniors surveyed by NACE said they expect to
need financial help from their parents after
college” (Pugh 2009: 2)
Sociological Imagination
 ability grasp the way the social structure
shapes individual lives(D)


1 college graduate mal-employed and moving back
home…maybe something is up with them

Most college grads are mal-employed and moving back
home… maybe we need to examine the social structure
http://www.mcclatchydc.com/2009/06/25/70788/recessions-toll-most-recent-college.html
Sociological Imagination

Lower wage jobs have a lingering effect: “The Curse of the Class
of 2009”

details how college graduates who enter the job market during the current recession
will likely suffer lower wages for years to come.
For each percentage point increase in the unemployment rate, those who graduated
during the recession earned 6 to 8% less in their first year of employment
compared to their more fortunate counterparts. The effect decreased in magnitude
by approximately a quarter of a percentage point each year after graduation.


However, even 15 years out of school, the recession graduates earned 2.5% less.
http://mba.yale.edu/news_events/CMS/Articles/6841.shtml
Winners and Losers
Video Clip

Video addresses who gets what
and why in the US




“Why is the middle class shrinking?”
From Now, a weekly show on PBS
hosted by Bill Moyers
Based on research in the chapter
you were assigned this week…
Note…the clip takes place in the
early 2000s…prior to the current
economic collapse
Pastors and Painters and Sociologists


PASTOR FRED CRAWFORD: “Everybody can't own the
company. So some people have to get very rich for other
people to make a decent living. And we just don't... we're not
those folks.”
Ron Caputo: “You know, their argument will be, well, nobody
told you to be a painter and have so many kids. You know,
you could have went to college, you could get grants, you
could do this, you could do that. They're right, to an extent,
okay? They are. But you know, look at the other aspect of it.
Well, then who's going to do the painting?”
Somebody has to do the painting: 1)Who has
gained the most…?
Year
1947
1967
1973
1979
1989
1995
1999
Hourly
earnings
$7.78
$12.30
$13.91
$13.87
$12.98
$12.50
$13.24
Wages Since 2000
Increasing Inequality in America…The “Super
Rich” have gained the most…



Last 30 years have witnessed an “astonishing concentration of income
and wealth in just a few hands.” (Krugman, NYT p.2)
Top 1% of families have seen after tax income rise 157%…
Most income gains since the 1970s were to the top 1%… those people
making more than $230,000


And 60% of those gains went to the top .1%, those who make more than
$790,000
And almost half of those gains went to the top .01%, those with income of
at least $3.6 million
Growing Inequality

“…Top 10%, top
1% and fractions of
the top 1 percent
enjoyed their
greatest share of
income since 1928
and 1929” (Johnston
2007:1)
Income Distribution Over Time: The Great Compression
When Income inequality declined dramatically

Why?
From The Great Compression to “The growing economy is mostly
going to benefit those who are not middle class.”
The hope of some…the fear of
others…Doubtful either way…
Now and Krugman
2. Relationship of top gains to other’s position?
America’s Middle Class…

What does the data show about the distribution of
income in America?
Winners and Losers


Simple Math tells us… “if the rich get more, that
leaves less for everyone else.” (Krugman p. 9)
The richest 13,000 families have almost as much
income as the 20 million poorest…
CEO Pay

What has the trend for CEO pay in the US been?
Winners and Losers
Business Week, Fall 2004
CEO Pay Compared….



It hasn’t always been like this…
It’s not like this elsewhere…
This is a big issue right now…

Stakeholders in conflict
Now and Krugman
3. Home prices vs. income…
New Home Prices Up, Income Flat


New Home Prices Up
120%
Income for Middle up
10%
Shifting Pension Risks

What happened to the teacher’s retirement nest
egg?
“The Great Risk Shift”




When you’re too old to work but too young to die…
Half of America's private sector workforce are not
covered by any retirement savings plan; their retirement
will be anchored only by Social Security and whatever
they have managed to save on their own.
The other 50 percent have one of the two main
employer-sponsored retirement savings strategies: a
traditional lifetime pension or a 401(k)-style investment
plan. http://www.pbs.org/wgbh/pages/frontline/retirement/need/#1
What happened to the teacher’s retirement nest egg?
Bottom line: American Exceptionalism… “No other advanced country
has seen the kind of surge in inequality that has taken place here”
(Krugman p.137)

Ratio of Top 10% to Bottom 10%
So what does a typical person earn…


When studying income, median is better than mean
(average)
What do we mean by median income?
When studying income, median is
better than mean…

What do we mean by median income?

The midpoint of a distribution


Why do we look at Median Income instead of
Mean….”Bill Gates walks into a bar…”
Imagine 5 people…

$25,000; $30,000; $35,000; $50,000, $10,000,000

Mean vs. Median???
When studying income, median is
better than mean…

Why do we look at Median Income instead of
Avg….Imagine 5 people…

$25,000; $30,000; $35,000; $50,000, $10,000,000


Average. vs. Median???
Note the difference
Average = $2,028,000…doesn’t really reflect reality
 Median=$35,000…better representation of reality


So what was the Median Household Income, 2009
Median Income
2007
2009
US
$50,233
$49,777
NJ
$62,594
$65,777
PA
$50,107
$48,172
Wages Since 2000
So what do people earn…

Some typical incomes?

US Bureau of Labor Statistics gathers this data annually
Percentage of Households by Income,
2005
Income
% of Population
Under $10,000
8.3
$10-14,999
6.4
$15-$24,999
12.4
$25-$34,999
11.4
$35-$49,999
14.9
$50-$74,999
18.4
$75-$99,000
11.1
More than $100,000
17.2
Census Bureau: Marger, p.63
72% of American
households earn
less than $75,000 a
year
In 2009, around 1 percent made more than
$500,000
Inequality in America 2009
David Cay Johnston | Oct. 25, 2010
http://www.tax.com/taxcom/taxblog.nsf/Permalink/UBEN-8AGMUZ
Outline




Distribution of Income &
Wealth…
Krugman on “Winners and
Losers”
Poverty in America
Social Mobility
 Esping

Anderson
Stuff…movies, tests, etc.
Quiz
1.
A.
B.
C.
D.
Research presented by Gosta Esping Anderson presented in
“Equal Opportunities” and the Organization for Economic
Cooperation and Development as discussed in the New York
Times editorial, reported that mobility (movement up the
class structure) in the United States is:
lower than in most other industrial countries.
Higher than in most other industrial countries
About the same as in most other industrial countries
Can no longer be measured accurately do to changes made
by the IRS
Quiz

2. Gosta Esping Andersen’s article titled “Equal Opportunities
and the Welfare State” suggested that:

A. that universal high quality child care can increase social
mobility for low income children

B. providing families with tax credits for vocational schools can
help increase social mobility for low income children

C. that welfare state really can not increase social mobility for
low income children

D. that low income children in the US are more likely to make it
to the middle class than low income children in Scandinavia.
Income & Wealth

Wealth-assets, particularly those that are income
producing.
 For
 But
most people their home…
for some people a second home in the Hamptons or
Virgin Islands, an apartment in London, a Van Gogh,
race horses, shopping malls, hotels, ships, sports teams,
bonds, stocks, cash reserves, etc.
This American life…

Wealth…

10 Volunteers Up Front…
Fewer People Own More Wealth
 1976: richest 10% of
the U.S. population
owned 50% of all wealth.
 2007: richest 10% of
the U.S. population
owned 73% of all wealth.
Source: Edward N. Wolff, “Recent Trends in Wealth Ownership”
65
Try this with a pizza tonight…
New York Magazine


Mind the Income Gap: Manhattan has the highest
wealth disparity in the country. How does that
make you feel? By Henry Blodget (11/06)
The richest New Yorker, David Koch, is worth an
estimated $12 billion. The poorest New Yorkers, 1.5
million people with incomes below the poverty line,
are collectively worth nothing—or less. David
Koch, in other words, is worth $12
billion more than a fifth of the city’s
residents combined.
Interesting to note changes over time:
Great Compression
Year
Pct. Of Wealth
Held by Top 1%
1922
32
1929
36
1939
31
1949
21
1958
24
1969
20
1989
38
1998
38
2007
34
US has highest rate of inequality in Wealth
Distribution
(Gini Index: closer to 100 the > inequality)
Japan
24.9
Sweden
25
Germany
30
UK
36
US
40
Concentration of Income and Wealth

BOTTOM LINE:
Top 10% take most of the income and wealth
The rest of America splits what left

Thus the widespread discussion of the new inequality


Explanations for Rise in Inequality…

What does Krugman thinks explain the surge in
inequality?
 Hint:
It’s very sociological…concepts from start of the class
Institutions Have Changed: In particular
Unions have become much weaker


1) “Treaty of Detroit” between corporations and unions
tied wages to productivity…all stakeholders benefited
Translation:


1947 Joe produced 100 widgets a day and was paid $100
1975 Joe produced 200 widgets a day and was paid $200
Institutional Changes: Unions are Weak and Workers
Are No Longer Sharing In Economy’s Productivity Gains

Translation:


1975 Joe produced 200 widgets a day and was paid $200
2003 Joe produced 400 widgets a day and was paid $205
The New Inequality: Stakeholders and
Compensation
Institutional Change leads to Change in
Norms
2) Decline of unions results in changed norms about
fairness and equality
 “Outrage
Constraint” has lessened
 In
1950 a CEO would no more take 500 times more than worker
than he would fart in the middle of a meeting
 Now
he simply takes the money…
Different Institutions, Different Norms,
Outcomes



General Motors, 1969

Walmart, 2005
Salary in today’s dollars,
$4.3 million

Salary in 2005, $23 million
Workers salary, $40,000


+ health care and pension
A Middle Class Wage


5 times what GM CEO took
Workers salary,
approximately $18,000


Most lack health care and
pensions
A Poverty Wage
Norms Changes and Tax Changes
Quiz


So what about those on the bottom of our
society’s system of startification
“The arguments are fiercest where the facts are
fewest.”
 William
James…famous dead psychologist and
philosopher
US Poverty in Perspective, 18702004…Trends??? Note next slide
U.S. Poverty by Age, 1959-2009:
Trends?
US Poverty in Perspective, 1870-2004…Government
Policies and Programs have reduced poverty
Ok…But How Do We Figure Out
Who is Poor?
Recession Raises Poverty Rate to a
15-Year High
By ERIK ECKHOLM



September 16, 2010
The percentage of Americans struggling below the
poverty line in 2009 was the highest it has been in 15
years, the Census Bureau reported Thursday, and
interviews with poverty experts and aid groups said the
increase appeared to be continuing this year.
With the country in its worst economic crisis since the
Great Depression, four million additional Americans found
themselves in poverty in 2009, with the total reaching 44
million, or one in seven residents. Millions more were
surviving only because of expanded unemployment
insurance and other assistance.
Determining Who is Poor?



Origins of Measure: Molly Orshansky of Social Security Administration uses “Economy Food
Plan”

1955: Cost of food estimated to be 1/3 of after tax income

Took this cost and multiplied it by 3 to account for other expenses (clothes, heat, etc)
 Adjusted it for family size

Threshold adjusted annually for inflation using Consumer Price Index (CPI)
Today: Government adds up before tax cash income from all sources: earnings, pensions,
interest, rental income, asset income, cash welfare…if below threshold…household is
considered poor.
Most Sociologists consider measure crude and outdated
 Food budget times 3…no longer adequate formula
 There are actually more poor people than government statistics suggest

Catholic Church Perspective on this : tour-audio
Family of Two…$14,000 or $41,000
Poverty in America


How does the US rank when compared to other
industrial nations with regard to the percentage of their
population in poverty?
More poverty, about the same, less?
Relative Poverty, 2005
Child Poverty, March 2005
Children in Single Mother Families:
Percent Poor, 2003
Explanations?
Explaining the Difference in Poverty
Rates

1) US has a weaker social safety net
 Less
money spent on reducing poverty
Explaining the Difference in Poverty Rates

2)Our low status, low skill jobs pay less

“America’s bottom end workers fare worse than their
counterparts in other industrialized countries.
Comparable German workers earn more than twice as
much”
(Iceland, 2003)


Bottom 10% of US workers earn 37% of US median wage

Other industrialized countries earn 60-76% of median wage
Unions are weaker in the United States so low
wage workers have less bargaining power
Remember the Hourglass
Occupations
Adding for
the Mostthe
Jobs
Projected
increase
Weekly PayThat
Weekly
Pay
Ten
Occupations
1) Systems Analysts
577,000
$1,008
Will
Add
the
Most
Jobs
Through
2010
2) Retail Salespersons
563,000
$329
U.S.
Median Weekly Wages in 2000
3) Cashiers
4)1.General
Managers
Food preparation
&
serving (includes fast food).
5) Truck
Drivers service
2. Customer
6) Officerepresentatives.
Clerks
$261
$473
$321
8)
Support Specialists
4. Computer
Retail salespersons.
5. Computer support
9) Personal Care and Home Health Aides
specialists.
10) Teaching Assistants
$278
6. Cashiers (except gaming).
11) Janitors, Cleaners and Maids
$406
7. Office clerks, general.
$280
551,000
$797
$336
==4-person
family
poverty
$336
4-person
family
povertyline
line
493,000
$299
463,000
$862
Registered
nurses.
7)3.Registered
Nurses
8. Security guards.
Computer
12)9.Nursing
Aidessoftware
and Orderlies
engineers, applications.
556,000
$419
451,000
$750
439,000
$983
333,000
$701
$321
375,000
$315
365,000
$324
325,000
$322
$338
Source: 1999 BLS data; $257
the 1999 poverty$0line for a $500
$1,000
$1,500
family of four is
Source: U.S. Bureau of Labor Statistics. Based on hourly earnings and a 40-hour week.
$327/week.
$1,901
10. Waiters and waitresses.
$2,000
7
Poverty Quiz
The majority of poor people come from this racial or
ethnic group?
A) White
B) Black
C) Hispanic
D) Asian
Who are the Poor?
White
African American
Latino
Asian
Native American
Source: Henslin, ch.7, 2006
56 percent
21
19
3
1
2007: Poverty By Race
24.5
25
21.5
20
15
10
9.8
8.2
5
0
White
Black
Hisp
Asians
Poverty
Quiz
Most poor families consist of able bodied people who
can work, but simply refuse to? (True or False)
False…Working but poor

The Work History of Families in Poverty, 2000
Work History
No full time worker
1 full time worker
2 or more full time workers
Source: US Census; Poverty in the US, 2000 (2001: Table C) in Kerbo, p.259
2000
46.1%
44.5%
9.4%
Quiz…

A.
B.
Most poor people live in inner cities.
True
False
Geography of Poverty

Source: Henslin, chapter 7, 2006
Your suburban
hometown?
Some Other Common Misconceptions
People Are Poor Because they have
Too Many Kids

Typical family on “welfare”
had an average of 1.8
recipient children.

One in two recipient families had only
one child.

One in 10 families had more than
three children.

Nearly one in two closed case families
had one child,

Only six percent had more than three
children
.” http://www.acf.hhs.gov/pros/ofa/datareports/annualreport8/chapter10/chap10.htm#1
Poverty Only Happens to Other
People
Social Mobility

O.K…immense inequality…but if people in the
bottom 90% don’t like it, they can always work
harder and join the top 10%…


Work hard and you’ll get ahead…Rags to riches..
Of the poorest 20 percent of Americans in 1989,
what percent were still in the poorest 20 percent
in 1998?
Family Mobility
Social Class is sticky: If I know your parents class I pretty
accurately predict what your class will be
Class Matters…

Studies of Social Mobility pose a serious challenge to the idea that is
primarily talent and hard work, not inherited social advantage that
separates the classes…



Hard for some to accept…but mountains of research demonstrate
What would help explain why most people don’t move very far from
the class in which they where born?
Put another way…



What keeps the low income people and their kids low income?
What keeps middle class people and their kids middle class?
What keep the rich people and their kids rich?
Gosta Esping Andersen & Early Childhood
Development



Parents of different classes can invest in their children differently
“What is now becoming clear is that the seeds of inequality are sown prior to
school age on a host of crucial attributes such as health, cognitive and noncognitive
abilities, motivation to learn, and, more generally, school preparedness”(23)
Income inequality




Quality of Preschools…impacted by class (Baby Ivies @ $18,000 yr)
Quality of schools…Camden or Cherry Hill…
Extracurricular activities…impacted by class
Cultural Resources


Number of books in the house…class impacts…
Parents vocabulary…note next slide…
Class and Early Childhood


Child in professional
home exposed to 2,000
words an hour vs. child
in a working class home
who his exposed to
1,300 words vs. child in
a welfare mother’s home
who is exposed to 600
By age three
Professional kids
vocabulary 50% large
Class
Words an Hour
Professional
2000
Working Class
1300
Welfare Mother
600
Investment in Kids and Higher Education


Parents of different classes can invest in their
children differently
Anyone remember how the US compares to
Scandinavian nations when it comes to the rate
at which its poorest citizens attend college?
Comparing Higher Education

“This contrasts unfavorably with all the Nordic countries, where
the likelihood of post-secondary education for the least
privileged has risen significantly over time. For the oldest
group of children, the odds of attaining higher education
were not much greater than in the United States. But for the
youngest Scandinavian generation, born in the 1970s, we
detect a significant equalization of opportunities. In Sweden,
the youngest generation of the underprivileged is now three
times more likely than its American counterpart to reach the
post-secondary level. Denmark and Norway have done even
better: underprivileged Danes are four
times and Norwegians six times as likely
as their American peers to go beyond high school”
(p.25)
More than just aptitude, talent, effort and
merit…


“The very rich can protect their less-gifted offspring from
descending the social ladder. Likewise, there is far less upward
mobility from the bottom than we would expect.”(p.24)
Graph says???
Social Stratification in America



“The very rich can protect their less-gifted offspring
from descending the social ladder. Likewise, there is
far less upward mobility from the bottom than we
would expect.”(p.24)
Raises many questions…first of which might be do
we care?
What does Esping Andersen suggest could make
things more equal?
Comparing Higher Education


“This contrasts unfavorably with all the Nordic countries, where the
likelihood of post-secondary education for the least privileged has
risen significantly over time. For the oldest group of children, the
odds of attaining higher education were not much greater than in the
United States. But for the youngest Scandinavian generation, born in
the 1970s, we detect a significant equalization of opportunities. In
Sweden, the youngest generation of the underprivileged is now three
times more likely than its American counterpart to reach the postsecondary level. Denmark and Norway have done even better:
underprivileged Danes are four times and Norwegians six times as
likely as their American peers to go beyond high school” (p.25)
Andeson attributes this to universal high quality child care that
narrows the gap between rich and everyone else
Quiz

2. Gosta Esping Andersen’s article titled “Equal Opportunities
and the Welfare State” suggested that:

A. that universal high quality child care can increase social
mobility for low income children

B. providing families with tax credits for vocational schools can
help increase social mobility for low income children

C. that welfare state really can not increase social mobility for
low income children

D. that low income children in the US are more likely to make it
to the middle class than low income children in Scandinavia.
Government Redistribution of Income and
Early Intervention…Fairness or Robbery?
Social Stratification Bottom Line




Gap between the very wealthy and everyone else has grown
enormously in the past three decades
Middle class share of society’s pie is no longer expanding,
and has shrunk since the 1960s
US has greater inequality, lower wages, lower life
expectancy, more poverty and poorer poor people than
most of our European peers
Class system in US is open, but there is not as much mobility
as many believe…
Global Inequality





Three Richest people in the world have assets that exceed the
combined Gross Domestic Product of the 48 poorest countries
The wealth of the 225 richest people is equal to the annual incomes of
the poorest 47% of the worlds population (>2.5 billion)
Almost half (47%) of the people on Earth live on $2 a day or less.
Up to 2.5 billion people lack adequate food, clean water, sanitation,
housing, medical care, education, transportation, and energy sources.
As much as one-third of the global workforce is unemployed or
underemployed.
Next…

Inequality and Labor