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  Review Notes on  ST 1: Introduction to Stratification:  Perspectives & Concepts
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Stratification  
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a.  Class:  the Economic Dimension of Stratification  
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b.  Status:  the Prestige Dimension of Stratification  
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c.  Power:  the Political Dimension of Stratification  
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Stratification in the Post Industrial Age  

 
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  Outline on  Social Stratification:   Class, Status, Power, Influence
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  -  Video Project:  Stratification by the Standard Deviants        18 min
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  -  Video Project:  Social Class by the Sociological Imagination Group     25  min
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  IntroductionStratification is the study of how resources are distributed among society  
  Summary:  Different ranking systems, based on the distribution of different scarce resources, have been referred to by sociologists as Stratification  
  The word "strata" means layers  
  There are various definitions of stratification  
  Stratification is the social process where scarce social & physical resources such as wealth, income, power, status, etc. are non randomly distributed among members, groups, classes etc. of society  
  Stratification is any social ranking system resulting in a hierarchy & an unequal distribution of different (social /physical ) goods or resources  
  Stratification is a structured process by which social groups are assigned a social position, resulting in a hierarchy  
  Stratification is a pattern whereby scarce “resources” are unequally distributed  
  Stratification is a structured social process by which social groups are assigned a social position, resulting in a hierarchy  
  Stratification is the institutionalization of  inequality: A system of social relationships that produces & reproduces inequality  
  The institutionalization of inequality means that the system is composed of a layered hierarchy that is well established & is a system of social relationships that determines who gets what & why, i.e. offers an ideology that supports an unequal distribution of resources  
  A stratification system has informal "rules," which are relatively fixed over time which are influenced by the conflict of groups in society  
  Inequality itself is not institutionalized, nor unjust, but often it does come with a hierarchy because we are social/meaning creating beings who label things as good/bad....   
  It is only when inequality is institutionalized that we call it stratification and it is only when inequality is based on ascription or when equal access to resources required to achieve in a society are controlled by those high in the stratification system that we say that a stratification system is unjust  
  Heller holds that  "The term structured indicates an arrangement of elements, the inequality is not random but follows a pattern, displays relative constancy and stability, and is backed by ideas that legitimize & justify it."  
  The study of stratification focuses on how a particular pattern of the allocation of resources is passed down from one generation to another  
  The US once had an average level of income inequality, but now it has the highest inequality of any industrialized country  
  "The central focus of stratification study is the fact that over a number of generations, those individuals who fill positions in any particular level of positional hierarchy tend to be recruited from the corresponding level of the hierarchy of individuals and subgroups"  
  "Those advantaged usually find ways to assure that their offspring will be advantaged"  
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Social differentiation is often a basis for stratification, but should not be confused w/ it:  
  Social differentiation exists when a distinct group or individual has distinct social qualities & social roles  
  Social differentiation & the level of stratification has increased in our society  
  The division of labor often parallels or reflects the stratification system since different jobs often have different rewards & unequal access to resources (social, et al)  
 
Social mobility is the degree of individual or group movement within a stratification system, up or down  
 
Vertical mobility is movement is social mobility up or down the occupational ladder & / or the class dimension  
  Horizontal mobility is movement across positions & / or occupations of roughly equal rank  
 
Vertical & horizontal social mobility has slowed in the U.S.
 
 
A society is said to be stratified by ascription when people primarily receive class, status, etc. through birth and is usually based on race, sex, family, social position, etc.
 
  Typical ascriptive characteristic in the US include race, gender, name, religion, etc.  
  The concept of ascription connotes that social position is "hereditary"  
  Ascription factors play a larger part in social mobility than our value system, which is part of our ideology, would have us believe  
  A society is said to be stratified by achievement when placement is primarily due to qualities that can be controlled by individuals e.g. what job you take or what education you get  
  Achievement is the level class, status, etc. which one attains, at least partially, through something they do, i.e. through their own efforts  
  When stratification occurs through achievement, social position is “earned”  
  Typical achievement characteristic in the US include occupation, income level, marriage status, educational level, etc.  
  Achievement factors play a smaller part in social mobility than our value system (ideology) would have us believe  
  Many fundamental social problems are addressed by the study of stratification  
  The study of stratification answers the questions:
-  Why are people rich or poor? 
-  What are the problems of poverty AND wealth?
-  How far can society allow each person to determine their own social position?
-  How are the social relationships of freedom, achievement, inheritance, etc. related?.
-  How do social factors operate to influence a person? 
-  How does the combination of individual & social factors impact ones achievement level?
-  To what extent is society responsible for all people?
-  Which generation do we blame? 
-  What are the political, economic, and social forces that produce inequality and stratification? 
-  Why do people rebel or not rebel? 
-  How does U.S. stratification compare to other countries? 
-  What is the basis of power? How is it maintained? 
 
  Various analytical constructs posit FOUR differing bases for stratification including class, status, power, & influence  
  Max Weber recognized that most societies have three major dimensions of stratification, which are the economic dimension, the social prestige dimension, & the political dimension: 
 
  a.  Class is the economic dimension of stratification  
  b.  Status is the prestige dimension of stratification  
  c.  Power is the political dimension of stratification  
  The composite term that includes a person's income, wealth, occupational prestige, and educational attainment is socioeconomic status  
  d.  Influence is the organizational dimension of stratification  
  Some theorists recognize that one's influence in society today is a function of the orgs, networks, peer groups, etc. to which one belongs & that this influence is largely independent of the three dimensions of strat as delineated by Weber, et al  
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There is a strong interaction of class, status, power & influence in determining ones position in the stratification system  
  The degree of inequality in the stratification system in the modern world system has increased  
  Historically there has been extensive social mobility in the US mostly from the beginning of immigration & conquest in the 1400's to the 1950s  
  There is clear evidence that upward social mobility slowed & eventually reversed from the 1960s to the 1980s  
  In the mid 1990s, there was a restart of upward social mobility  
  The restart of upward social mobility for the middle class stopped in the face of the econ "slowdown" of 2001 & has remained stopped through 2005
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Review:  Socio Historical Overview:  Stage 11:  The Post-Industrial Era  

 
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Examples of Social Differentiation
      race      gender       job       clique....

 
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Examples of the interaction of class, status, power & influence

1.  In general they all vary in the same direction
     lo class = lo status = lo power = lo class ....

2.  But sometimes one dimension of stratification is out of sync
     lo class = hi status = hi power = ....
    Example:  political leader such as Lech Walensca of Poland

    hi class = lo status = lo power = ...
    Example:  Za Za Gabor:  despised actress

3.  At the extremes of any 1 dimension, unusual things happen
      Examples
     All the class (wealth) cannot directly translate into power
    Steve Forbes & Ross Perot have failed at running for President
    (This is because other billionaires are competing, through proxies, for this power)

     Example:  street person may have great power if they admit to self & others that they have nothing left to lose


 
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Outline on the  Stratification of Social Class
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  Project:  Your Experience of Class 
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  -  Project:  Pick a Formulation of Classes, Apply to Occupation, Authority, & Ownership 
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  A fundamental principle of conflict theory is that there is class conflict in society  
  Class analysis is not class bashing or conspiracy theory  
  The form of society is shaped by the conflict btwn the groups in society  
  Different groups have conflicting basic self interests & these groups are called classes  
  Sociologist refer to a group of people who are similar in terms of level of income or wealth as a social class  
  A class is a social grouping of people w/ similar socio economic status & relationship to the means of production in any type society  
  A class is a group of people who are similar in terms of level of income or wealth  
  For Kerbo, a class is a grouping of people w/ similar positions & similar political & economic interests  
  The class dimension of stratification is based on economic position  
  Class analysis is widely utilized in the social sciences  
  The sociological definition of social class indicates that there are many definitions, which are labeled in many different ways and have unclear boundaries  
  For Marx, there is class conflict in society:  The form of society is shaped by the economic base, as well as by conflict btwn groups in society  
  According to Marx, the most important aspect of the definition of class is a person's relationship to the means of production & most people are either workers, or they have ownership of the means of production  
  For Marx, a class is a group that has a conflicting basic self interest as compared to another group / class & the primarily conflict in society is economic  
 
Marx's class analysis holds that     " All history is the history of class struggle"  
  There were only two primary classes in Marx's day  
  One problem with the Marxian definition of social class is that it places a salaried person receiving $125,000 a year in the same social class with someone working for the minimum wage  
 
Weber believes that class is determined by a person's relationship to means of production, as well as one's life chances, & capital ownership ( status & power )  
 
Groups (classes) conflict because of  competition over scarce resources
 
 
There are SIX types of society/stratification systems, each w/ its own unique class structure  
 
An example of a stratification system w/ a unique class structure is a feudal, agricultural society, where the landowners are the ruling class, who were made up of royalty / aristocrats.  The catholic church clergy made up another class and the subordinate class consisted of serfs, peasants, tenant farmers
 
 
An example of a stratification system w/ a unique class structure is the pure capitalism that existed in Marx's day, the mid 1800s, where there were only two classes: the owners who were known as the bourgeoisie, & the workers who were known as the proletariat
 
 
Today, more classes are recognized than in Marx's time
 
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Table of Various Formulations of Class
 
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Table of Nine Classes in the Modern Industrialized Nations ( Primarily the US )
 
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What are these classes based on?
 
 
The lower class accounts for 10 to 20 percent of the population, this group is struggling to make it, lives around the poverty line, depending on employment, health, marital status, etc. 
 
  Most homeless people are adult males  
 
The working class accounts for 30 to 35 % of the population, & works at blue collar or clerical jobs and has income below the average level of $51,000 for a family  
  Sociologist Herbert Gans is a conflict theorist who in “The Functions of Poverty” makes the point that a good many Americans (the non poor & often the wealthy) benefit from the continued existence of widespread poverty  
 
The lower middle class accounts for 25 to 35 % of the population, this group holds the lower status white collar jobs, many of which may not require a college degree, and has income around the median level of $51,000 for a family
 
 
The upper middle class accounts for 15 to 20 % of the population & is made up of better paid mgt. & professional employees, and has income above the median level of $51,000 for a family
 
 
The upper class makes up about 2 to 5 % of the population and some have assets well in excess of $1 million
 
  The corporate class is more likely to have made their wealth by their own efforts rather than from the ownership of capital  
  The upper class may consist of some of the new rich  
  The new rich experiences status inconsistencies because they are educated but cannot earn the incomes to live up to their expectations  
 
The elite class makes up about 1 % of the population & many have assets well in excess of $1 million
 
  The elite social class includes both the "old rich" and the "new rich"  
 
In 2001 the 400 wealthiest families ranged from $600 mm to Bill Gates w/ $54 bb, i.e. $54,000 mm
 
 
The old rich gain prestige from their name alone & have been wealthy for generations
 
 
Some of the old rich include the Rockefellers, the Fords, the Carnegies, the Danforths, Steve Forbes, & others  
 
The new rich gain prestige from being "self made"
 
 
Some of the new rich include Bill Gates, Sam Walton, Steven Jobs, Ross Perot, & others  
  Kerbo believes that class divisions are based on THREE major criteria which overlap to a certain degree  
  a.  Class is based on a person's position in the occupational structure  
  b.  Class is based on a person's position in the authority structures  
  Authority structures are systems which determine how many people a person must take orders from versus how many people a person can give orders to  
  When normal people are accorded the power to protect & maintain their political & economic interests, even when their interests conflict w/ other groups, they exercise that power  
  c.  Class is based on a person's ownership of property  
  Ownership, in the modern world includes not only land, but also
- stocks
- bonds
- intellectual property
- patents
- copyrights
- proprietary knowledge
 
  Given that the US is an industrial capitalist nation, typical listing of class divisions are made primarily in terms of occupational & economic divisions  
  Classes are often labeled differently by different analysts, depending on the questions they are asking  
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Table 5 - 3    The Convergence of Occupation, Bureaucratic & Property Divisions of Five Class Categories  
  For many analysts, the major conflict in society is between the owners & the workers  
  Class analysis examines the exact mixture of achievement versus ascriptive factors that determine where people end up in the econ hierarchy  
  Class analysis asks many fundamental questions about the role of economic stratification in society, such as:  
  a. 'what is the most important criteria in distinguishing classes?'  
  b.  'how many classes exist?'  
  c.  'to what extent do individuals recognize the divisions of class?'  
  d.  'do class divisions still exist in the US & other industrialized nations?'  
  e.  'are racism & other forms of discrimination based primarily on class, status, power or race stratification?'  
  See Also:  EO Wright on Class
 

 
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Table of Various Formulations of Class
PW
Bourgeoisie UC Upper Class Capitalist Class   Elites
  MC Upper Middle Class Higher Nonmanual Class Higher White Collar Class  
Proletariat LC Lower Middle Class Lower Nonmanual Class Lower White Collar Class White Collar
    Working Class Skilled Manual Class Skilled Blue Collar Class Blue & Pink Collar
    Lower Class Unskilled Manual Class Unskilled Blue Collar Class  
          The Poor

 
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Table of Nine Classes in the Modern Industrialized Nations ( Primarily the US )
PW
1. Upper Class
 ( Old Money )
Families high in property ownership w/ high authority flowing from said ownership;
eg:  the old established families: Rockefellers, DuPonts, Mellons, Fords, Carnegie
2. Corporate Class
 ( New Money)
Families w/ high authority & power in major corporations in government usually w/o extensive ownership in these corporations
Examples:  corp. presidents, vice presidents, & top board members
Most analysts agree that the UC is shrinking while the corp class is growing
3. Upper Middle Class Families w/ relatively little property but high to middle positions in occupation (nonmanual labor) and authority
Examples:  lesser corporate managers, doctors, lawyers....
4. Middle Class Families w/ relatively little property but  middle positions in occupation (nonmanual labor) and authority
Examples:  lesser corporate managers, doctors, lawyers & major office workers, clerks, salespeople
5. Lower Middle Class Families w/ relatively little property but middle to low positions in occupation (nonmanual labor) and authority
Examples:  office workers, clerks, salespeople
6. Skilled Working Class Families w/ little or no property middle to low positions in a skilled occupation often based on manual labor w/ little or no authority
Examples:  Plumber (blue collar)
7. Unskilled Working Class Families w/ little or no property who are in middle to low positions in an unskilled occupation often based on manual labor w/ little or no authority
Examples:  Fast food worker (white collar), construction laborer (blue collar)
8. Lower Class Families w/ no property & no authority who are often unemployed, & may receive enough $ to stay in a home through the family, welfare, social sec, disability, crime, etc.
9. Destitute Families w/ no property & no authority who are often unemployed, who do not receive enough $ to stay in a home

 
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Table 5 - 3  The Convergence of Occupation, Bureaucratic & Property Divisions of 5 Class Categories
Kerbo0305
 
Positions in Three Main Types of Institutional Structures
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Class Categories
Occupation
Bureaucratic Authority
Property Relation
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Upper Class
High
High
Owner
 
Corporate Class
High
High
Nonowner
 
Middle Class
High to Mid Level
Mid Level
Nonowner
 
Working Class
Mid Level to Low
Low
Nonowner
 
Lower Class
Low
Low
Nonowner
 

 
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What are these classes based on?
Broadly speaking, classes are based on your economic position in society

 
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 Outline on  Status
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  STATUS IS PRESTIGE, HONOR, RESPECT   
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Review: Stratification is a social process where scarce social & physical resources such as wealth, income, power, status, etc. are non randomly distributed among members, groups, classes etc.   
  The prestige dimension of stratification is based on status position   
  If people think highly of you and you are well known, you have a high level of status, prestige, etc.   
  STATUS IS A RELATIVE POSITION OR STANDING IS A SOCIAL SYSTEM   
  Any position, role, in a social system has a status 
 
  The concept of status denotes that one is in a hierarchy of prestige   
  Positions are roles w/ status 
 
  Thus status is another form of power, in that one can use status to get people & orgs to act in ways that they would not otherwise act 
 
  Legally, status is ones legal character, position, or condition of a person or thing such as the status of a minor, a corporation, a prisoner, etc.   
  Status is often used to signify position in a social structure   
  There are particular rights & responsibilities (duties) attached to each status position in society 
      Examples:  student & teacher         parent & child          doctor & patient 
 
  But a status based analysis may or may not place one in a position w/in a hierarchy in that the ranking of status is less linear than economic or power strat   
  FOR MANY FUNCTIONALISTS, A PERSON'S STATUS IS THE MOST CENTRAL ATTRIBUTE IN UNDERSTANDING THEIR POSITION IN SOCIETY; E.G. MORE IMPORTANT THAN CLASS, WHICH IS THE MOST CENTRAL TO CONFLICT THEORISTS   
  Many analysts develop major theoretical orientations on status 
 
  Max Weber first made status important in social analysis   
  For Weber, the stratification of status is seen in a fixed hierarchy of prestige & honor   
  For Weber, Objective indicators of status stratification include 
- ones style of life 
- ones restrictions or advantages on social interactions (networking) 
 
  Talcott Parsons:  Of any theorist, Parsons gives the most prominence to status as a mode of  stratification in social analysis   
  OCCUPATIONAL PRESTIGE IS THE ESTEEM & RESPECT ASSOCIATED W/ HIGH TO LOW OCCUPATIONAL ATTAINMENT 
 
  Examples of occupational prestige can be seen in the varying status of a plumber or an electrician, & an office wkr or a teacher, & a lawyer or doctor 
 
  While occupations may have slightly different status', the differences of status of a plumber & an office wkr are more based on economics & power   
  In relation to occupational prestige surveys done over half a century in the United States have consistently shown that the same jobs retain high status   
  Kerbo believes the concept of status does NOT explain the primary characteristics of strat in the modern industrial world 
 
  For Kerbo, strat is based more on economics & power 
 
  Status attainment research examines the exact mixture of achievement versus ascriptive factors that determine where people end up in the status hierarchy 
 
  Neo Marxists, post modernists, feminists, popular culture analysts, et al would counter Kerbo's conception of status being superseded by econ & power   
  Some analysts would note that the power of status in today's world has increased, pointing out that actors, performers, musicians, politicians, & others' social position is based more on status than econ or power   
  Kerbo points out that most people whose social position appears to be based on status, also have high economic position income, & or power   

 
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Table:  Occupational Prestige Ratings:  US Compared to 60 - Country Average
Far 0506
OCCUPATION
60 COUNTRY AVERAGE
US
University Professor or Dean
86
82.4
Physician
78
 81.5
University Professor
78
78.3 
 Physicist
76
73.8
 Member, Board of Directors
75
71.8
 Lawyer
73
75.7
 Architect
72
70.5
 Dentist
70
73.5
 Chemist
69
68.8
 Sociologist
67
65.0
 Airline pilot
66
70.1
 High school teacher
64
63.1
 Clergy member
60
70.5
 Personnel director
58
57.8 
 Artist
57
57.0
 Classical musician
56
55.0
 Social Worker
56
52.4
 Journalist
55
51.6
 Professional nurse
54
61.5
 Secretary
53
45.8
 Actor or actress
52
55.0
 Union official 
50
41.2
 Real estate agent
49
44.0
 Professional athlete 
48
51.4
 Farmer
47
43.7
 Motor vehicle mechanic
44
35.8
 Policeman / woman
40
47.8
 Railroad conductor
39
40.9
 Telephone operator
38
40.4 
 Jazz musician
38
37.2
 Carpenter
37
42.5
 Dancing teacher
36
32.3
 Firefighter
35
33.2
 Sales clerk
34
27.1
 Truck driver
33
31.3
 File clerk
31
30.3
 Assembly line worker
30
27.1
 Construction worker
28
26.2
 Gas station attendant
25
21.6
 Waiter
23
20.3
 Janitor
21
16.1
 Farm worker
20
21.4
 Garbage collector
13
12.6
 Shoe shiner
12
   9.3 
Note:  In a limited number of instances, there were slight differences in job titles btwn the world average and the US average.  The closest job title was used.

Source:  Occupational Prestige in Comparative Perspective by Donald J. Treiman, 1977, Academic Press. 


 
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Outline on the Stratification of Power
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  Review:  Stratification is the social process where scarce social & physical resources such as wealth, income, power, status, etc. are non randomly distributed among members, groups, classes etc. of society  
  Power is the ability to affect the actions of others  
  The political scientist Robert Dahl ( 1957 ) defined power as the ability of a person or social formation (group)  to get another social formation to act or believe in a particular way that they would not have done before  
  Power may be exercised on many levels such as 
a.  the individual level
b.  the group level
c.  the organizational level
d.  the societal level
 
  Most theorists believe power is meaningless unless it is used  
  For most social theorists, there is an interaction among class, status, & power  
  The study of power was first made important by Hobbes  
  For Hobbes & many others, power involves force or coercion, the threat of aggression, etc.  
  Power is often seen as political power where the coercion is politicized, & this is easily confused w/ political authority or influence  
  For Weber, power is exercised through the political system and organizations   
  For Weber, the political dimension is the most important because this is where Weber puts "inevitable" organizational struggle  
  The power dimension of stratification is based on political position  
  For Marx, power is exercise through the economic system and organizations  
  Marx holds that the class / economic dimension is the most important, i.e. the basis & conduit more the primary exercise of power in society  
  Parsons holds that the status dimension is the most important, i.e. the basis & conduit more the primary exercise of power in society  
  Others argue power is exercised through all social structures, including 
1.  peer networks 6.  the military
2.  the family / gender 7.  charity
3.  religion 8.  education
4.  work /economy 9.  the media
5.  govt. 10.  leisure / recreation
 
  Power, in modern societies, is exercised through social structures primarily through influence, but also through authority, orgl politics, control of information, control of wealth, & even force & coercion  
 
Most social theorists agree that in most situations, there is no fixed amount of power  
  Legitimate power is power that people agree that the people exercising the power have the right to do so or groups accept as proper  
  Legitimate power is power that people accept as proper  
  Legitimate power is often attached to a position in society; i.e. teachers have power in the class room, police in the street, parents in the home; and each of these people would not have power in the others' sphere  
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There are SIX basic sources of power including  
  1.  Authority  
  2.  Politics:  voting, elections, etc.  
  3.  Force and Coercion  
  4.  Control of Information  
  5.  Wealth and Income  
  6.  Influence  
  There is a subtle distinction btwn power based on authority, politics, force, coercion, expertise, information, wealth, income, or influence, but the types of power often interact or reinforce each other  

 
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A Socio Historical Overview of the  Post Industrial Age  circa 1970 to Present
External
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  Project:  Your Experience of the Post Industrial Age
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  Project:  Your Experience of the European Model
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Introduction: During the Post Industrial Age, the economy shifted from basic industry to services & high tech jobs
 
  The Post Industrial Age may be seen as a product of both the Industrial Age & the Era of Global Capitalism in that industry matured, resulting in the development of the service & the high tech sectors, and the deindustrialization of the core, i.e. movement of basic industry to the periphery, & the globalization of all facets of society, e.g. the economy, culture, etc.  
 
The previous era, the Era of Global Capitalism, ( 1910 to the present ) created many of the conditions that came together to herald the Post Industrial Age  
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The Chart on the Characteristics of the Stratification System of the Post Industrial Age indicates that the ranking system is open, placement is based on achievement, legitimation is based on the culture of law ( "the rule of law" ), the basis of ranking is accomplished through a bureaucratized state capitalist, economic system, & the range of equality is broad, running from low to high  
 
There are 10 fundamental qualities of Post Industrial Society
1.  Less heavy basic industrial production
2.  The service economy comes to predominate in the first world
3.  More high tech jobs
4.  The information economy / internet is integral to the overall economy & growth
5.  Knowledge & education are equivalent to property & wealth
6.  Working middle class transforms into the white collar middle class
7.  Rise of professional classes
8.  Part time, serial employment
9.  The continuation of the growth of global capitalism
10.  Global monopolies & mergers develop
 
 
Some of the fundamental qualities of post industrial society have decreased inequality and many other have increased inequality  
 
During the Post Industrial Age, many people have not made the educational shift to high tech / service because education is an expensive investment
 
 
Some people see the rise of professional class in the Post Industrial Age as the end of the class dominated system  
 
In the Post Industrial Age, production is more complex, forcing the elites to make concessions to get knowledge from workers
 
 
In the Post Industrial Age, there is increased productivity which creates more surplus, of which more is going to workers, resulting in less strikes & bigger markets
 
 
Employment relations in the Post Industrial Age achieve many Labor's goals, w/o the intervention of the Labor Movement
 
 
In the Post Industrial Age, the reduced population growth rate in industrial society has created a larger "pie", & less mouths to feed
 
 
In the Post Industrial Age, elites must invest in the workforce as they never have before
 
  But an educated workforce & open trade systems creates a value system of egalitarianism / democracy  
 
Historically, the elites needed the allegiance of the population only during times of war
 
 
In the post industrial era, the elites need the allegiance of the general population, especially the middle classes, for the normal functioning of the high tech / service economy
 
 
Given the high tech nature of wars of the 90s & 00s, it is not clear that the elites still have the need for the allegiance of the population during times of war, but most agree that they do  
 
The marginal utility of wealth declines in the Post Industrial Age  
 
Review the Marginal Utility  
 
The declining MU of wealth means that middle & upper class workers & professionals are less motivated by $$ which result in the demand for more free time & other perquisites
 
 
But on the other hand, the international division of labor has resulted in increased world inequality which demonstrates that improved employment relations have not been globalized  
 
The degree of inequality in the stratification system in the modern world system has increased   
 
Historically there has been extensive social mobility in the US mostly from the beginning of immigration & conquest in the 1400's to the 1950s  
 
There is clear evidence that upward social mobility slowed & eventually reversed from the 1960s through the 1980s  
  In the mid 1990s, there was a restart of upward social mobility which ended w/ the "slowdown" of 2001 to 2003 & has not restarted as of 2004  
 
The economic decline of the US in the modern world system appeared as early as the 1960s  
 
Economic decline stimulated support for Reaganomics in the 1980s  
  Average Americans became more afraid for their economic security  
  The corporate class became more involved in politics in an attempt to reverse the decline in US profits & market influence  
 
Today's development of the modern world system goes beyond capitalism and communism in that there is competition among many forms of state and monopoly capitalism  
 
The process of stratification has moved to a new level, the global level  
 
Deindustrialization was the label given to the movement of industry from the core to the periphery & semi periphery  
 
A major cause of the increase in inequality in the P-I Age is the large loss of industrial jobs in America  
  A major cause of the increase in inequality in the Post Industrial Age is the growth of jobs at both the higher & lower ends of the income scale  
 
The P-I era is characterized by Reaganomics, the fall of the Berlin Wall in 1989, the collapse of Communism during the early 90s, the "New Democrats" (Clinton, et al) in the 90s  
 
It is no longer simply capitalism vs. communism, but competition among differing forms of organization in the capitalist world economies  
 
Historically speaking, most global competition, which is often in the form of nationalism, has been among differing forms of capitalism  
  The cold war / competition btwn capitalism & forms of socialism are the historical anomaly  
 
Ronald Reagan was the President from 1980 to 1988 & he ushered in a "Republican Revolution" which was labeled "Reaganomics"  
 
Reaganomics was a unique combination of:
-  econ policy which cut govt regulation, cut taxes, & had no Industrial Policy,
-  social policy which eliminated welfare, &
-  foreign policy which supported Poland & the Pope & oversaw the beginning of the collapse of communism
 
 
The effects of Reaganomics, including tax cuts, a military buildup, & deficits, were significant & are still felt in the 00s  
 
Reaganomics in the 80s resulted in downsizing, “service” jobs, cut wages, mergers, less regulation & govt  
  During the era of Reaganomics, the US moved from having average inequality to having the greatest inequality  
  Reaganomics contributed to an increase in income & wealth inequality that had already begun as a result of changes in the world economy  
  But Reaganomics did little to change the basic causes of American economic decline  
 
  In 1989 temp jobs were only 3% of new jobs
  In 1993 they were 26%    (New York Times, March 10, 1994)
 
 
The poverty rate increased because of Reaganomics... & persisted  
 
  1989   poverty rate was 12.8%
  1991   14.2 % as the recession grew
  1992   14.8 %  at the height of the recession
  1993    15.1 % when the recession was over
 
 
Average family income declined after Reaganomics, & increased w/ Clinton  
 
There has been a decline in average family income through 1994 when it temporarily increased, followed by continued decline
It was down 7 % since 1989
 
 
There was a short recession at the end of the 1st Bush admin, ( Bush, Sr Presidency 1989 - 1992 ) that ended in 1992 & there was econ growth by 1994  
 
The econ growth in the 90s & 00s is a historically new phenomenon in that few new jobs were accompanying gen econ growth  
  When jobs appeared, they were "soft jobs"  i.e. temporary, part time, w/ low wages & few benefits  
 
In the 90s the effects of Reaganomics began to be reversed  
 
From the beginning of the 1980s, the US already had the highest level of income inequality among industrial nations  
 
By the end of the 1980s, this inequality was even higher, & it continued to grow in the 90s finally leveled out toward the end of the 90s  
 
By 95, the US was coming out of the recession in better shape than Europe & Japan  
 
By the late 90s the growth of inequality resulting from job cuts, lower paying jobs, & more temp jobs created higher profits, was reversed.... at least in the short term  
 
Some analysts belief that the European Model will create a better econ in the 21st century  
 
Germany & Japan have less inequality than the US because:  
 
a.  workers are paid more  
 
b.  workers have higher levels of education  
 
c.  workers have higher levels of skill  
 
d.  both the labor force & corp mg. are more loyal to each other than in the US  
 
The major point of the P - I Age is that there has been a historic shift in the American stratification system & the place of the US in the modern world system  
 
It is the end of the Cold War & while American is dominant, it is not absolute, economically speaking, because we are challenged by Europe & Japan  
 
Gender in the P - I Age:  The "New Woman"  
 
Race in the P - I Age:   
 
At this time there are no more historical eras on the horizon, but possibilities include
- the Biotech Age
- the environmental / global warming / population crash era
- Pax Democratica / market econ era
- "The End of History"
- the Information Age
 

 
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Socio Historical Overview
PW
Epoch Name
Approximate Time Period
1.  Geologic Time   5 bb  BP -  5  mm BP
2.  Pre Human Evolution   5 mm BP - 1.5 mm BP
3.  Hunter Gatherer Society   1.5 mm BP - 10 K BC
4.  Pre Empire Civilization   10 K BC - 3 K BC
5.  Early Empires Era   3 K BC - 200 BC
6.  Roman Era   200 BC - 500 AD
7.  Middle Ages   500 - 1300
8.  Early Industrial Age 1300 - 1700
9.  Industrial Age 1700 - present
10. Global Capitalism 1910 - present
11. Post Industrial Society 1970 - present

 
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Chart on the Characteristics of the Stratification System of the Post Industrial Age
PW
Type of System Ranks Placement Legitimation Basis of Ranking Equality
Primitive open achievement tradition status hi equality
Slavery generally closed ascription legal/racism economic hi inequality
Caste closed ascription religion status hi inequality
Feudal generally closed generally ascription legal/religious economic highest inequality
Class open mostly achievement legal economic/bureuacratic low to medium
Post Industrial open mostly achievement legal economic/bureaucratic low to high
The Chart on the Characteristics of the Stratification System of the Post Industrial Age indicates that the ranking system is open, placement is based on achievement, legitimation is based on the culture of law ( "the rule of law" ), the basis of ranking is accomplished through a bureaucratized state capitalist, economic system, & the range of equality is broad, running from low to high

The End
 
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