Outline

1
Outline

• Globalization Video
• Winners and Losers
• Social Stratification
• Thinking Systematically about Winners and
  Losers
• Distribution of Income Wealth
• Krugman on Winners and Losers

2
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.
• Hes a Pastorbut he sounds like a sociologist

3
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)

4
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)

5
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/2
  005/04/04/news/top_story/bd7b5d0be02b283386256fd90
  04ea9b2.txt

6
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, GenderFor 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 todayinequality 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 structurenorms
  institutions

7
Social Stratification

• Consider stratification and the Titanic1,600
  people died
• Was it random? Or were certain people more likely
  to be saved?

8
Social Stratification and Death

• Consider the Titanic1,600 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?

9
Social Stratification and Death

• Consider the Titanic1,600 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 firstcabins closer to life
  boatsput on boats first
• It had nothing to do with talent, skills, effort
  merit

10
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 wont get spots near the
  door its just not possible
• No matter how talented, how hard they try, how
  much personal responsibility is takensome will
  not be near the door
• Sociologists who study stratification examine
  this process

11
Stratification as a Trait of Society

• Stratification is about more than personal
  responsibility, talent, merit and effortit is
  systemic.
• Imagine an Ambition pill that all Americans took
  every morningthe pill made provided unlimited
  effort and talent
• Could everyone have a high status, high skill
  job? Doctor, Manager, Business Owner, Judge, etc.

12
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.

13
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 Jamesfamous dead psychologist and
  philosopher

14
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.

15
Income Wealth

• Wealth-assets, particularly those that are income
  producing. (D)
• For most people their home
• But 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.

16
Income and Wealth

• So how are income and wealth distributed among a
  societys population
• How do we divide the pie?

17
This American life

• Income
• 10 Volunteers Up Front

18
Ten peopleone person gets 50 of the pay on
payday
19
The Middle Class Squeeze

• Trends like thisalong 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)
• Lets explore

20
Winners and Losers

• Income Inequality Today

21
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 weekwill keep you
  posted
• Always posting new readings so be sure to hit
  refresh when you visit the reading page

22
Quiz

• The chapter written by Paul Krugman titled The
  Great Divergencedescribed 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

23
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

24
The Middle Class Squeeze

• Trends like thisalong 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)
• Lets explore

25
US Government Occupational Outlook Projections
Top 10 Largest Job Growth

• How many require a college education?

26
An Hourglass Economy 2010

• Four of the ten do not pay enough to lift a
  family of four out of poverty
• One just barely pays enough
• Winners and Losers you can only work the jobs
  that a society provides

27
Reading this Week

• Recession's toll Most recent college grads
  working
• What was this article about?

28
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
  homemaybe 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/recess
  ions-toll-most-recent-college.html

29
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

30
Winners and Losers
31
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
• Notethe clip takes place in the early
  2000sprior to the current economic collapse

32
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?

33
Somebody has to do the painting 1)Who has gained
the most?
Year Hourly earnings
1947 7.78
1967 12.30
1973 13.91
1979 13.87
1989 12.98
1995 12.50
1999 13.24
34
Wages Since 2000
35
Increasing Inequality in AmericaThe 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

36
Growing Inequality

• Top 10, top 1 and fractions of the top 1
  percent enjoyed their greatest share of income
  since 1928 and 1929 (Johnston 20071)

37
Income Distribution Over Time The Great
Compression When Income inequality declined
dramatically

• Why?

38
From The Great Compression to The growing
economy is mostly going to benefit those who are
not middle class.
39
The hope of somethe fear of othersDoubtful
either way
40
Now and Krugman

• 2. Relationship of top gains to others position?

41
Americas Middle Class

• What does the data show about the distribution of
  income in America?

42
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

43
CEO Pay

• What has the trend for CEO pay in the US been?

44
Winners and Losers
45
Business Week, Fall 2004
46
CEO Pay Compared.

• It hasnt always been like this
• Its not like this elsewhere
• This is a big issue right now
• Stakeholders in conflict

47
Now and Krugman

• 3. Home prices vs. income

48
New Home Prices Up, Income Flat

• New Home Prices Up 120
• Income for Middle up 10

49
Shifting Pension Risks

• What happened to the teachers retirement nest
  egg?

50
The Great Risk Shift

• When youre 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/fro
  ntline/retirement/need/1
• What happened to the teachers retirement nest
  egg?

51
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

52
So what does a typical person earn

• When studying income, median is better than mean
  (average)
• What do we mean by median income?

53
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???

54
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 2,028,000doesnt really reflect
  reality
• Median35,000better representation of reality
• So what was the Median Household Income, 2009

55
Median Income
2007 2009
US 50,233 49,777
NJ 62,594 65,777
PA 50,107 48,172
56
Wages Since 2000
57
So what do people earn

• Some typical incomes?
• US Bureau of Labor Statistics gathers this data
  annually

58
Percentage of Households by Income, 2005
Income of Population
Under 10,000 8.3 72 of American households earn less than 75,000 a year
10-14,999 6.4 72 of American households earn less than 75,000 a year
15-24,999 12.4 72 of American households earn less than 75,000 a year
25-34,999 11.4 72 of American households earn less than 75,000 a year
35-49,999 14.9 72 of American households earn less than 75,000 a year
50-74,999 18.4 72 of American households earn less than 75,000 a year
75-99,000 11.1
More than 100,000 17.2
Census Bureau Marger, p.63 In 2009, around 1 percent made more than 500,000 In 2009, around 1 percent made more than 500,000
59
Inequality in America 2009David Cay Johnston
Oct. 25, 2010 http//www.tax.com/taxcom/taxblog.n
sf/Permalink/UBEN-8AGMUZ
60
Outline

• Distribution of Income Wealth
• Krugman on Winners and Losers
• Poverty in America
• Social Mobility
• Esping Anderson
• Stuffmovies, tests, etc.

61
Quiz

• 1. 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

62
Quiz

• 2. Gosta Esping Andersens 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.

63
Income Wealth

• Wealth-assets, particularly those that are income
  producing.
• For most people their home
• But 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.

64
This American life

• Wealth
• 10 Volunteers Up Front

65
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
66
Try this with a pizza tonight
67
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 nothingor less.
  David Koch, in other words, is worth 12 billion
  more than a fifth of the citys residents
  combined.

68
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
69
US has highest rate of inequality in Wealth
Distribution (Gini Index closer to 100 the gt
inequality)
Japan 24.9
Sweden 25
Germany 30
UK 36
US 40
70
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

71
Explanations for Rise in Inequality

• What does Krugman thinks explain the surge in
  inequality?
• Hint Its very sociologicalconcepts from start
  of the class

72
Institutions Have Changed In particular Unions
have become much weaker

• 1) Treaty of Detroit between corporations and
  unions tied wages to productivityall
  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

73
Institutional Changes Unions are Weak and
Workers Are No Longer Sharing In Economys
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

74
The New Inequality Stakeholders and Compensation
75
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

76
Different Institutions, Different Norms, Outcomes

• Walmart, 2005
• Salary in 2005, 23 million
• 5 times what GM CEO took
• Workers salary, approximately 18,000
• Most lack health care and pensions
• A Poverty Wage

• General Motors, 1969
• Salary in todays dollars, 4.3 million
• Workers salary, 40,000
• health care and pension
• A Middle Class Wage

77
Norms Changes and Tax Changes
78
(No Transcript)
79
Quiz

• So what about those on the bottom of our
  societys system of startification
• The arguments are fiercest where the facts are
  fewest.
• William Jamesfamous dead psychologist and
  philosopher

80
US Poverty in Perspective, 1870-2004Trends???
Note next slide
81
U.S. Poverty by Age, 1959-2009 Trends?
82
US Poverty in Perspective, 1870-2004Government
Policies and Programs have reduced poverty
83
OkBut How Do We Figure Out Who is Poor?
84
Recession Raises Poverty Rate to a 15-Year HighBy
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.

85
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 welfareif
  below thresholdhousehold is considered poor.
• Most Sociologists consider measure crude and
  outdated
• Food budget times 3no longer adequate formula
• There are actually more poor people than
  government statistics suggest
• Catholic Church Perspective on this tour-audio

86
Family of Two14,000 or 41,000
87
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?

88
Relative Poverty, 2005
89
Child Poverty, March 2005
90
Children in Single Mother Families Percent Poor,
2003
91
Explanations?
92
Explaining the Difference in Poverty Rates

• 1) US has a weaker social safety net
• Less money spent on reducing poverty

93
Explaining the Difference in Poverty Rates

• 2)Our low status, low skill jobs pay less
• Americas 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

94
Remember the Hourglass
95
Poverty Quiz

• The majority of poor people come from this racial
  or ethnic group?
• A) White C) Hispanic
• B) Black D) Asian

96
Who are the Poor?

• White 56 percent
• African American 21
• Latino 19
• Asian 3
• Native American 1
• Source Henslin, ch.7, 2006

97
2007 Poverty By Race
98
Quiz

• Most poor families consist of able bodied people
  who can work, but simply refuse to? (True or
  False)

99
FalseWorking but poor

• The Work History of Families in Poverty, 2000
• Source US Census Poverty in the US, 2000 (2001
  Table C) in Kerbo, p.259

Work History 2000
No full time worker 46.1
1 full time worker 44.5
2 or more full time workers 9.4
100
Quiz

• Most poor people live in inner cities.
• True
• False

101
Geography of Poverty

• Source Henslin, chapter 7, 2006

• Your suburban hometown?

102
Some Other Common Misconceptions

• People Are Poor Because they have Too Many Kids

• Poverty Only Happens to Other People

• 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/data-reports/annua
  lreport8/chapter10/chap10.htm1

103
Social Mobility

• O.Kimmense inequalitybut if people in the
  bottom 90 dont like it, they can always work
  harder and join the top 10
• Work hard and youll get aheadRags to riches..
• Of the poorest 20 percent of Americans in 1989,
  what percent were still in the poorest 20 percent
  in 1998?

104
(No Transcript)
105
(No Transcript)
106
Family Mobility
107
Social Class is sticky If I know your parents
class I pretty accurately predict what your class
will be
108
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 acceptbut mountains of research
  demonstrate
• What would help explain why most people dont
  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?

109
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 Preschoolsimpacted by class (Baby
  Ivies _at_ 18,000 yr)
• Quality of schoolsCamden or Cherry Hill
• Extracurricular activitiesimpacted by class
• Cultural Resources
• Number of books in the houseclass impacts
• Parents vocabularynote next slide

110
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
  mothers 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
111
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?

112
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)

113
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???

114
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 questionsfirst of which might be do
  we care?
• What does Esping Andersen suggest could make
  things more equal?

115
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)
• Andeson attributes this to universal high quality
  child care that narrows the gap between rich and
  everyone else

116
Quiz

• 2. Gosta Esping Andersens 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.

117
Government Redistribution of Income and Early
InterventionFairness or Robbery?
118
Social Stratification Bottom Line

• Gap between the very wealthy and everyone else
  has grown enormously in the past three decades
• Middle class share of societys 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

119
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 (gt2.5 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.

120
Next

• Inequality and Labor