Wealth and Poverty

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Wealth and Poverty

• Michael Itagaki
• Sociology 102, Social Problems

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Problem in Sociological Perspective

• Four Economic Problems Facing the U.S.
• Decline in purchasing power

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Figure 7.1 (p. 210)Average Hourly Earnings, in
Current and Constant Dollars. Source By the
author, based on Statistical Abstract 1999 Table
698 2003 Table 636.
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Problem in Sociological Perspective

• Four Economic Problems Facing the U.S.
• Decline in purchasing power
• Taxes
• Savings

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Figure 7.2 (p. 211)How Much do Americans
Save?Source By the author, based on American
Savings Education Council, 1999 Statistical
Abstract 1990 Table 700 1995 Table 710 2003
Table 668.
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Problem in Sociological Perspective

• Four Economic Problems Facing the U.S.
• Decline in purchasing power
• Taxes
• Savings
• National Debt

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Problem in Sociological Perspective

• Three types of poverty
• Biological
• Relative
• Official

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Scope of the Problem

• Social Inequality
• Distribution of Wealth and Income
• How income inequality has increased

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Figure 7.3 (p. 213)How is the Income of the
United States Distributed?Source By the author,
based on Statistical Abstract of the United
States 2003 Table 688.
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Scope of the Problem

• Social Inequality
• Distribution of Wealth and Income
• How income inequality has increased
• Distribution of wealth

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Figure 7.4 (p. 213)How the Business Assets of
the United States Are Distributed.Note The 10
percent of richest families also own 90 percent
of corporate bonds. For all corporate stock, the
share of the richest 10 percent dips just a bit
They hold only 85 percent of this form of wealth.
They also own 88 percent of all trust funds, 62
percent of all money market accounts, and 57
percent of all pension accounts. Source
Beeghley 2004.
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Scope of the Problem

• How much is a billion dollars?
• 1 cent every second
• 60 cents/minute, 36/hour, 864/day
• If lived since 0 BC
• still take another 1,000 years to save
• 1 billion

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Scope of the Problem

• So what are some consequences of this high
  concentration of wealth?
• Few making decisions for many power
• Cheaper labor cheaper costs more profit
  impact job market
• Profit motive for few, affects livelihood for many

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Scope of the Problem

• Who are the poor?
• Race-ethnicity, education, sex
• Race
• 10 Whites, Asian Americans
• 22 Latinos, 24 Blacks
• But most poor people are white

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Scope of the Problem Poverty

• Lack of economic resources impacts
• Housing
• Health
• Education
• Employment
• Income

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Scope of the Problem Poverty

• Who are the poor Education
• 3 of college graduates end up poor
• 20 high school dropouts are poor
• ex. 80 of Blacks who
• Didnt finish high school
• Didnt get married before having first child
• Had first child before age 20
• ended up poor

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Scope of the Problem Poverty

• Education (recap)
• Chances of being poor decrease as amount of
  education increases
• Similar relationship w/physical health (stress)
• Feminization of poverty
• Most poor families headed by women
• Major causes divorce, lower wages, and

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Scope of the Problem Poverty

• Feminization of poverty
• Most poor families headed by women
• Major causes births to unwed mothers

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It Was a Wonderful Life

• Discussion