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  Review Notes on   ST  9:  Poverty & the Political Economy of Welfare
External
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  Poverty Tables 
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The Lower Class   
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Poverty   
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          The Poverty Line   
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          The Consequences of Poverty - Intro   
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          The Consequences of Poverty - Advanced   
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          Cross National Comparisons of Poverty   
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          Global Poverty   
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Social Mobility   
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The Causes of Poverty   
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The Dominant or Popular Views of the Cause of Poverty   
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          The Culture of Poverty   
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The Situational Causes of Poverty   
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          Merton's theory of anomie   
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          Class & False Consciousness   
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          Horatio Alger Myth   
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          Out of Wedlock Births   
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          Unemployment   
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          Deindustrialization   
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          Low Wages & the Minimum Wage   
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          Govt Economic Policy   
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The Structural Causes of Poverty   
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Welfare   
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          Welfare to Work   
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          Criticisms of the Welfare System   
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          Welfare as Conflict Management   
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          Functionalist View on Poverty   
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          Davis & Moore on the Functionality of Poverty   
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          Critique of Davis & Moore   
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          Conflict View on Poverty   
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          The Empirical Evidence on the Functionality of Stratification   

 
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Outline on the  Lower Class
External
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Table of Nine Classes in the Modern Industrialized Nations ( Primarily the US )   
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Table on the Convergence of Occupation, Bureaucratic & Property Divisions of Five Class Categories   
  THE LC HAVE:  A LOW LEVEL OCCUPATION, NO PROPERTY, NO AUTHORITY, A HI LEVEL OF UNEMPLOYMENT, & USUALLY RENT  
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Families in the lower class generally have FIVE characteristics.  Lower class families generally:  
  - have a low level occupation, that pays at or around the minimum wage, & is at the bottom of the occupation scale   
  - have little or no property ownership in that they do not generally own their own home & if they do, it is a small home, & generally their car is not worth much   
  - have little or no authority on the job   
  - are unemployed more than other classes   
  - receive enough money to stay in a home through their job, family, welfare, disability, crime, etc.  
  IN 2000 ABOUT 15% OF THE POPULATION WAS POOR; ABOUT 57 MM PEOPLE   
  In the 1990 census, there was an attempt by the Dept. of the Census to count the poor.  They did not believe they had an accurate count because it is difficult to track the lower class & the destitute 
 
  Estimates show that in 2000 w/ a population of 285 mm, w/ 15 % poor, there are 43 mm people in the lower class & the destitute class but w/ 20 % poor, there are 57 mm poor 
 
  People in the lower class have incomes around the poverty live, slightly above or below it   
  Using a quintile class system, the lower class & Destitute are about 20 % of the population & about 13 % of the population lives below the poverty line, i.e. about 37 mm of 285 mm in 2000   
  About 7 % of the lower class lives above the poverty line   
  Because of the churning of social mobility, the lower class generally straddles the poverty line, w/ some below it & some above it   
  The destitute live completely, & far below the poverty line   
  Many people who fall below the poverty line are not homeless, but every day is a struggle to maintain a home, stay out of poverty, and to be able to continue to work   
  EMPLOYMENT, WAGE LEVELS, MARITAL STATUS, HEALTH, HEALTHCARE, & LIFE'S TRAVELS IMPACT THE LC'S LIFE CHANCES   
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There are FIVE factors that impact the ability of people in the lower class just to make it, including 
1.  employment 
2.  wage levels 
3.  marital status 
4.  health & healthcare
5.  luck / life's problems 
 
  Finding adequate food, shelter clothing, medical care & transportation ranges from difficult to impossible   
Link
Many in the lower class do not have a high school education although their children have a better chance of completing high school than they did   
  Very few of the lower class go to college   
  Nationally, about 80 % of all students graduate from high school   
  Nationally, about 80 % of high school grads go to college, but only a small % of the lower class attends college, thus 64 % of all students go to college   
  Nationally, about 60 % of college students graduate, thus about 39 % of all students graduate from college   
  The majority of the lower class rent their home, live in the central city, rural areas, & small towns rather than suburbs   
  Divorce & separation rates are high in the lower class   
  There is a high number of single parent families in the lower class   
  Divorce & single parenthood are often pathways to poverty in the lower class   
  CRIME EXPLOITS THE LC, & SOME TURN TO CRIME, ESP 'VICTIMLESS' CRIME TO MAKE A LIVING  
  Some of the very poor turn to crime just to survive   
  In 1980, the rate of incarceration in the US was  139 per 100 k   
  In 1994, the rate of incarceration in the US was  373 per 100 k   
  In 1994, the US had over 1.2 mm people in prison, another 3.6 mm on probation & 4.2 mm unemployed   
  Thus in 1994 the US had more people in prison than China, more than any nation except Russia   
  The US rate of incarceration is 5 times the rate of England; 14 times rate of Japan   
  Prisoners often consider prison to be a preferable life to homelessness   
  The near poor are those who are above the poverty line but who cannot get through a financial crisis such as a major auto problem, a medical problem, the injury of themselves or a loved one, etc   
  THE DESTITUTE DIFFER FROM OTHERS IN THE LC IN THAT THEY HAVE NO HOME & THEY HAVE NO FORMAL JOB  
  The visible poor are comprised of that stereotyped image of the poor based on TV images & those we see on the street   
  The destitute class are chronically poor & unemployed   
  The destitute class is also called the underclass or the homeless   
  The children of the destitute rarely know anyone who has a steady job, a decent ed or any opportunity   
  The destitute's lack of a work ethic, i.e. a culture of work, socializes the children to be the next generation of the poor & near poor   
  The destitute class or underclass is comprised of those who are detached from the formal labor force & live in social conditions that perpetuate this condition   
  According to the 1990 Census, there were over 1 mm homeless people, even though we were in the middle of an economic boom   
  In 1993: 
- 15 % of Am people live in poverty:  40 mm people 
- 30 % of these live below half the poverty line 
- 48 % of female headed homes live in poverty
- 22 % of children, i.e. 12 mm children & 8 mm adults are malnourished  or up to 20 mm total 
 
 
See Also:  Poverty  
  MOST POOR PEOPLE HAVE A JOB, MANY HAVE MORE THAN ONE JOB BUT BECAUSE OF LOW WAGES & NO BENEFITS, THEY CANNOT GET AHEAD   
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Figure on the Labor Force Status of Poor People, 15 yrs. & over in 1989   
  An analysis of the Labor Force Status of Poor People, 15 yrs. & over in 1989 shows that 
- about half the poor people did not work in 1989, while half did work 
- early two thirds were ill, disabled, retired or attending school 
- about one fifth were keeping house & half of these were in female headed homes 
- about 5 % were looking for work 
 
  Most of the poor are working or looking for work   
  Most poor people live in male headed homes   
  Blacks, children and female headed families are over represented among the poor, however in absolute numbers, white males make up the largest group of the poor   
  Today, children are the fastest growing segment of the poor   
  Most of the poor do not live in the inner city   

 
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Table of Nine Classes in the Modern Industrialized Nations ( Primarily the US )
 
1. Upper Class
 ( Old Money )
Families high in property ownership
      w/ high authority flowing from said ownership
EG:  the old established families:
      Rockefellers, Du Ponts, 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 (non manual labor)
      and authority
Examples:  lesser corporate managers, doctors, lawyers....
 
4. Middle Class Families w/ relatively little property
      but  middle positions 
      in occupation (non manual 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 (non manual 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 
      Manual labor
      Little or no authority
Examples: 
      Plumber (blue collar)
 
7. Unskilled Working Class Families w/ little or no property
      Middle to low positions in an unskilled occupation 
      Manual labor
      Little or no authority
Examples:  Fast food wkr (white collar)
      Construction Laborer (blue collar)
 
8. Lower Class Families w/ no property & no authority
      Often unemployed
      Receive enough $$ to stay in a home ( family, welfare, social sec, disability, crime..)
 
9. Destitute Families w/ no property & no authority
      Often unemployed
      Do not receive enough $$ to stay in a home & so are homeless
 

 
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Table on the Convergence of Occupation, Bureaucratic & Property Divisions of 5 Class Categories
Kerbo 0305
blank
Positions in Three Main Types of Institutional Structures
Class Categories Occupation Pay / Status Bureaucratic Authority Property Ownership
1. Upper Class High High Owner
2. Corporate Class High High Non owner
3. Middle Class High to Mid Level Mid Level Non owner
4. Working Class Mid Level to Low Low Non owner
5. Lower Class Low Low Non owner

 
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Figure on the Labor Force Status of Poor People, 15 yrs. & over in 1989
Farley 0209
In the Labor Force,
Part of the Year
44 % of Total
The Labor Force is defined as everyone who works part or full time or who is looking for working.  All others are out of the Labor Force:  students, prisoners, mental patients, etc.  blank
blank Work part of the year
& out of labor force part of the year
13 %
blank Unemployed less than half of year
blank Worked all year full time
9
blank Unemployed all year
5
blank Work all year part time
4
blank Unemployed more than half of year, but not all year
4
Out of the Labor Force,
All Year
55 % of Total
blank blank
blank Keeping house:  half are female homes w/ children
Most of rest are non employed wives w/ children
  19 %
blank Ill or disabled
13
blank Retired
11
blank Attending School or College
10
blank Armed Forces
  5
blank All other
  2
An analysis of the Labor Force Status of Poor People, 15 yrs. & over in 1989 shows that 
- about half the poor people did not work in 1989, while half did work
- nearly two thirds were ill, disabled, retired or attending school, which are legitimate excuses
- about one fifth were keeping house & half of these were in female headed homes
- about 5 % were looking for work
Farley 0209

 
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  Outline on  Poverty
External
Links
  -  Supplement:  US Census Info on Poverty 
Link
  -  Project:  Video: CNN Report on Poverty w/ Bill Clinton
Link
  -  Video:  CNN Report on Poverty w/ Bill Clinton
Link
  Poverty is the condition of having an extremely low income & standard of living, either in comparison w/ other members of society (relative poverty), or in terms of the ability to acquire basic necessities (absolute poverty)  
  Poverty is the condition of being poor w/ respect to money, goods, or means of subsistence or a deficiency in money, property, etc.  
 
There are TWO basic ways to measure poverty & thus there are several definitions of poverty
 
 
1.  The measure of absolute poverty examines poverty based on absolute number or monetary level
 
 
The measure of absolute poverty is the method used by the US govt
 
  Counting the poor is very difficult to do  
  Many social critics consider the Census a failure because it fails to count many of the poor  
 
In the US, the poverty line is $14,763 for family of 4 in the late 1990's
Median (middle) income is $39,000 in the late 1990's
 
  In the US, the poverty line is $19,800 for family of 4 in 2004
Median income is $51,000 in 2003
 
  The US Poverty Line is based on research which demonstrated that the Poor spent 1/3 of their income on food  
 
2.  The measure of relative poverty examines poverty in relationship to the socio-economic context of a particular society
 
 
Durkheim & Merton believe that it is not poverty per se that creates stigma & crime, but poverty in the midst of wealth
 
  The income gap is the amount of difference in income between two or more groups  
  The income gap is also known as the socio-economic gap
 
 
The income gap between the upper class, middle class & the lower class is a more accurate predictor of crime & violence than is absolute income levels
 
  Research shows that overall America values do not support assistance for the poor  

 
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  Outline on the  Poverty Line
External
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The concept of the poverty line was developed in 1965 by Mollie Orshansky, who was a bureaucrat for the Dept. of Agriculture
 
  The poverty line is an absolute measure of poverty  
  Orshansky based her formulation of the poverty line on two studies from the 1950's which demonstrated that, first, the poor spent 1/3 of their income on food & second, the amount of money spent on an that "economy food plan" which since 1974 has been called the thrifty food plan  
 
Since 1969 the USDA has adjusted the poverty line for inflation in a process is called indexing
 
 
The official poverty measure establishes the set of dollar amounts, called thresholds, which vary by family size, which indicate the poverty line for 1 person, a family of 2 adults, a family of 2 adults & 1 child, a family of 1 adult & 1 child, etc. 
 
 
Yet, the poverty line is still considered fairly subjective or inaccurate
 
  There are SEVEN criticisms of the poverty line as implemented by the USDA in the US   
  1.  The thrifty food plan is inadequate in the long run in that adults cannot maintain their health  
  2.  The thrifty food plan is inadequate for children in both the short run as well as the long run  
  3.  The thrifty food plan has the poverty line based on pretax income, but the % rate of taxes have gone up  
  4.  The indexing of the poverty line is flawed because the index is based on the general costs of living, but food inflation is higher than general inflation  
  5.  The poverty line inaccurately estimates the ratio of food to non-food expenses as 1 to 3, when it should be 1 to 5   
  6.  Official measures of poverty using the standard poverty line tend to underestimate the number of poor  
  7.  The absolute measure of poverty misses qualitative differences:  the poor in the US are living in the midst of wealth  
  Table 3.7  A Comparison of the Official Poverty Line w/ the Median Income demonstrates that the poverty line is was reduced in the 1970s to about 1/3 of median income
Link

 
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Outline on the  Consequences of Poverty - Intro
External
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  JOB LOSS, LOWER INCOME, HIGHER PRICES, ETC. ALL IMPACT THE POOR MORE THAN ANY OTHER CLASS   
 
Life is more difficult for poor people in that they are ill more often, receive poorer & more limited medical care, live shorter lives, more mental illness, more likely to be a victim of crime, more likely to die in infancy, & are less happy
 
 
The children of the poor have a greater risk of dying in infancy, a greater risk of getting in trouble w/ the law, a greater risk of teenage pregnancy, a lower quality education, less likely to complete high school
 
 
The poor spend more of their income on food & housing than the non poor & yet they are inadequately fed & housed, more likely to live in overcrowded housing
 
 
Because the poor cannot afford adequate housing, they often live in crime prone areas & are thus more likely to become the victims of crime
 
 
Because the poor are often afraid to venture out, & cannot afford adequate heating or air conditioning, they are more likely to die in fires from substandard heating, from the cold, & from heat stroke
 
 
Because the poor cannot afford adequate housing, they often live in environmentally degraded areas & are thus more likely to become the sick from pollution
 
  CHURNING IN THE CLASS SYSTEM MEANS THAT MANY PEOPLE FALL INTO POVERTY, & THEN WORK THEIR WAY OUT, ONLY TO FALL BACK AGAIN   
 
Estimates of the homeless in the US vary widely, & were an issue of contention in the 1990 & the 2000 census
 
 
In 1990, the Census counted 230,000 homeless
 
  The Census found that in the 1990s over 1 mm were homeless at some time even though we were in the middle of an economic boom  
  In 1989, the Urban Institute estimated there were 600,000 homeless  
  Up to 7% of the population experience homelessness some time in their lives  
  In 2002, nearly one quarter of those w/ household income under $25,000 have no health insurance  
  In 2002, the uninsured rate for children of all classes was 11.6%, indicating that far less than that % have no insurance in the middle & upper classes while far more than that % have no insurance in the lower class  
  DESPITE BEING ONE OF THE RICHEST NATIONS, THE US HAS CHRONIC POVERTY LEVELS IN THE TEENS % OR HIGHER   
  Figure on the Percent of Population Living in Poverty:    1959 - 2005
 Link
 
An analysis of the Figure on the Percentage of Population Living in Poverty from 1959 - 2002 shows that there are TWO recent political factors that have affected the poor
1.  The Poverty rate fell in the 60s & 70s due to steady expansion of LBJ's War on Poverty
2.  Poverty rates steadily increased in 1980's due to conservative shift of Reaganomics
 
 
13.1 % of the population lives at or below the poverty line in 2003, resulting in over 38 mm people living in poverty
 
  In 2005, 37.0 million people were in poverty, not statistically different from 2004  
  Poverty rates remained statistically unchanged for 
Blacks (24.9 percent) &
Hispanics (21.8 percent) btwn 2004 & 2005
 
  In 2005, the poverty rate decreased for non Hispanic Whites (8.3 percent in  2005, down from 8.7 percent in 2004)  
  In 2005 after 4 years of consecutive increases, the poverty rate stabilized at 12.6 percent in 2005; higher than the most recent low of 11.3 percent in 2000 & lower than the rate in 1959 (22.4 percent), the first year for which poverty estimates are available  
  The poverty rate in 2005 for children under 18 (17.6 percent) remained higher than that of adults (18 to 64 year olds) (11.1 percent) & that of seniors (people 65 & older) (10.1 percent; all were not statistically different from 2004  
 
In 2005, the number in poverty remained statistically unchanged from 2004 for children (under 18) and adults (18 to 64 years old) (12.9 million & 20.5 million, respectively)  
 
In 2005, the number of seniors (65 and older) in poverty increased; 3.6 million in 2005, up from 3.5 million in 2004
 
  The overall US poverty rate is over twice ( 2.2 ) that of other industrialized nations  

 
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Outline on the  Consequences of Poverty - Advanced
External
Links
  Table:  A Comparison of the Official Poverty Line w/ the Median Income
Link
  Table 3.7  A Comparison of the Official Poverty Line w/ the Median Income demonstrates that the poverty line is was reduced in the 1970s to about 1/3 of median income  
  An analysis of the Official Poverty Line & Median Income shows the positive effects of  the "War on Poverty," first launched in the 1960s  
  President Johnson ( LBJ ) developed a comprehensive welfare program w/ childcare, job training, education, internships, parenting skills, etc.  
  President Nixon "reformed" welfare in the 1970's eliminating many features, leaving a system that provided subsistence living only  
 
A breakdown of the 1993 poverty rate demonstrates the number of children & elderly affected
 
  In 1993:
- the Poverty Line was set at   $ 14,763
- 15.1 % of population lived below the poverty line
- 39.3 million people lived below the poverty line
- 15.7 million of those are children
-    4    million of those are elderly
-  30 % of those living below the poverty line are living at a level of less than half the poverty live
- 48 % of female headed homes live in poverty
- 22 % of children, i.e. 12 mm children & 8 mm adults are malnourished  or up to 20 mm total
 
 
The situation of the poor steadily worsened w/ America's conservative shift in the 1980's
 
  Under Reagan, the welfare roles were reduced by 400 K & another 300 K had their benefits reduced  
  Table 9 - 1.3   Poverty Rates in Industrial Nations 1984 - 1987
Link
  An analysis of the Poverty Rates in Industrial Nations shows that the overall US poverty rate is over twice ( 2.2 ) that of other industrialized nations & the child poverty rate is 2 1/2 times that of other industrialized nations  
  An analysis of  Table 9 - 1.3  Poverty Rates in Industrial Nations, shows that the overall US poverty rate is higher than any industrialized country & the child poverty rate is much higher than any other industrialized country  
  See also:  Cross National Comparisons of Poverty  
  The income gap, aka the socio economic gap, is the amount of difference in income btwn two or more groups  
  The income gap between the UC, MC & the LC is a more accurate predictor of crime & violence than is absolute income levels  
 
The income gap is a type of relative poverty measurement
 
  Table 9 - 2   Trends in the Rate of Poverty with three Definitions of Poverty:  1965 - 1997
Link
 
An analysis of the Trends in the Rate of Poverty with three Definitions of Poverty:  1965 - 1997 shows that the Poverty Rate remains high even when we take into account all money & benefits going to the poor
 
  Table 9 - 2:   Trends in the Rate of Poverty with three Definitions of Poverty demonstrates that poverty rates are lower when one accounts for govt transfer pmts, i.e. Medicare, food stamps, etc.  
 
There are FIVE reasons that it is inaccurate to gauge assistance to the poor simply based on the $$ spent by the govt
1.  Govt cash & benefits spent on the poor is not equal to what they actually receive less
2.  Many of the poor receive little or nothing
3.  Much of the money is spent on administration of welfare & benefits
4.  Much of the money goes to the Middle Class & the Upper Class ( e.g. Social Security )
5.  Much of the money goes to the aged who do have a high rate of poverty, but all of the aged receive Social Security & Medicare
 
 
Table on Proportion of People by Race Below Poverty Level in the US
Link
  The Table on Proportion of People by Race Below Poverty Level demonstrates that in general, poverty rates are declining for all races, and that poverty rates for whites are half that of other races  
  Table 9 - 3  Extent of Poverty for Select Categories of the Population in 1992 & 1997
Link
  Table 9 - 3  Extent of Poverty for Select Categories of the Population demonstrates that poverty rates for non whites, female headed homes, central cities, & the South are significantly higher than that of the general population  
 
An analysis of the Poverty for Select Categories of the Population in 1992 & 1997 shows:
- The Poor improved their position in the 1990's
- Whites have the lowest rates of poverty
- Female headed households have high rates of poverty
- Central cities have high rates of poverty
- The South has the highest rate of poverty of any region in the US
 
  Table  9 - 4    The Comparative Impact of Welfare Benefits & Tax Policies on Reducing Poverty
Link
 
An analysis of the Comparative Impact of Welfare Benefits & Tax Policies on Reducing Poverty shows that the US has only a slightly higher "raw poverty rate" than the other industrialized nations, but the US does less to support the poor than other industrialized nations & therefore the US has the highest poverty rate
 
  Table  9 - 4:   The Comparative Impact of Welfare Benefits & Tax Policies on Reducing Poverty demonstrates that compared to other industrialized countries, the US has the highest poverty rate & the least amount of welfare support  
  Table  9 - 5  Comparative Attitudes Toward Inequality & Govt Involvement in the Economy to Reduce Inequality
Link
 
An analysis of the Comparative Attitudes Toward Inequality & Govt Involvement in the Economy  to Reduce Inequality shows that America values do not support assistance for the poor as much as do other industrialized nations' values
 
  Table  9 - 5:  Comparative Attitudes Toward Inequality & Govt Involvement in the Economy to Reduce Inequality demonstrates that the US has the most unfavorable attitudes toward inequality, tending to blame the poor, & for govt involvement in reducing inequality  
  Table 9 - 6  General Subject & Funding of Poverty Research in Major Sociology Journals 1965 to 1975   and    1984 to 1994
Link
 
An analysis of General Subject & Funding of Poverty Research in Major Sociology Journals from 1965 to 1975   and    1984 to 1994 shows that just as the Conservative shift of the 1980's inherent in the Reagan Revolution negatively impacted the poor, this also cut funds to study the poor & the causes of poverty
 
  Table 9 - 6:  General Subject & Funding of Poverty Research in Major Sociology Journals demonstrates that the social sciences focus on poverty is high regardless of low govt funding for those studies  
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Outline on a  Cross National Comparisons of Poverty
External
Links
  -  Project: Video: Famine Foretold
Link
  -  Video: Famine Foretold          5:16
Link
  COMPARED TO OTHER INDUSTRIALIZED NATIONS, THE US HAS THE HIGHEST POV RATE, & THE HIGHEST CHILD POV RATE  
  Cross national comparisons of poverty put the problem of poverty in a global perspective & allow one to see how various societies succeed & fail at alleviating & eliminating poverty  
Link
Table:  Poverty Rates in Industrial Nations  1984 - 1987
Link
  An analysis of  Table on Poverty Rates in Industrial Nations, shows that the overall US poverty rate is higher than any industrialized country & the child poverty rate is much higher than any other industrialized country   
  Specifically, Table on Poverty Rates in Industrial Nations, shows that the overall US poverty rate is over twice (2.2 times) that of other industrialized nations & the child poverty rate is 2 1/2 times that of other industrialized nations  
  Comparing the US & a 3rd world country, the US poverty line equals an average income in the 3rd world
 
- Low income economies:
below
$ 500 per yr
- Lower middle income:     500     to   2,400 per yr
- Upper middle:  2,400   to   5,500 per yr
- High: 
above
5,500 per yr
 
  WELFARE IS HIGHER IN EURO BECAUSE:  OF THEIR HIST OF CLASS CONFLICT, 'CLASS POLITICS,' HIGHER VOTING RATES, INSTITUTIONALIZED SOC SERVICES, GREATER DEMOCRACY, A SOCIALIST IDEOLOGY  
Link
Welfare benefits are greater in Europe than the US for SIX reasons, including that:   
  1.  they have a longer history of more intense class conflict  
  2.  the lower class in over there has more political organization  
  3.  the lower class over there is more likely to participate in elections because their multiparty, parliamentary system give more power to weaker groups  
  4.  social services over there are institutionalized & therefore easier to defend than customs  
  5.  the greater the democracy, the greater the welfare  
  6.  socialist, capitalist, authoritarian political econ systems show structured differences in welfare benefits: nations have varying mandates to redistribute wealth  
  WELFARE IS HIGHER IN THE US THAN THE 3rd WORLD BECAUSE:  THE US LC HAS POL ORG, HIGHER VOTING RATES, INSTITUTIONALIZED SOC SERVICES, MORE WEALTH AVAILABLE, & AN IDELOLOGY OF THE ELIMINATION OF POV  
Link
Welfare benefits are greater in US than in the 3rd World for FIVE reasons, including that:   
  a.  the lower class over here has more political organization  
  b.  the lower class over here is more likely to participate in elections because the US is more democratic than over there  
  c.  social services over there are not institutionalized & are based on tradition & customs  
  d.  there is less money for welfare over there  
  e.  in general the culture of non-western nations supports the ideology that there is & should be poor people  

 
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TablePoverty Rates in Industrial Nations 1984 - 1987
Kerbo 0309
 
Total Adults & Children
Children
US
   13 %
   20 %
Canada
7
9
Australia
7
9
UK
5
7
Fr
5
7
Netherlands
3
4
GDR
3
3
Sweden
4
4
Average
5.9
7.9
An analysis of the  Table on Poverty Rates in Industrial Nations, shows that the overall US poverty rate is higher than any industrialized country & the child poverty rate is much higher than any other industrialized country 
PW
An analysis of the  Table on Poverty Rates in Industrial Nations, shows that the overall US poverty rate is over twice (2.2 times) that of other industrialized nations & the child poverty rate is 2 1/2 times that of other industrialized nations
PW

 
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 Outline on  Global Poverty 
External
Links
 
-  Supplement:  Beyond a Wall of Secrecy, Devastation.  The Washington Post 
 Link
 
-  Supplement:  Mine Labor in Congo Dims Luster in Diamonds.  The New York Times 
 Link
 
INTRO:  THE GLOBE IS STRATIFIED AMONG CORE / RICH, SEMI PERIPHERAL / DEVELOPING, & PERIPHERAL / UNDEVELOPED / POOR NATIONS 
 
 
Low income, peripheral, nations are home to some rich & many poor 
 
 
Most people live w/ incomes of a few hundred dollars a yr
 
 
The burden of poverty in low income countries is greater than for the poor of the US & other core nations 
 
 
THE SEVERITY OF POVERTY CAN BE JUDGED ON A RELATIVE OR ABSOLUTE SCALE 
 
 
A key reason that quality of life differs so much around the world is that economic productivity is lowest in precisely those regions where population growth is highest 
 
  The distinction btwn absolute & relative poverty is the distinction btwn a simple numerical scale & a comparison   
  The measure of absolute poverty examines poverty based on absolute number or monetary level 
 
 
The measure of relative poverty examines poverty in relationship to the socio economic context of a particular society 
 
  Absolute poverty is a particularly serious problem in the poorest nations in that many simply do not have enough to live on   
  Absolute poverty is more important in the global perspective   
  Some people lack resources that are taken for granted by others   
  Lack of resources that is life threatening   
  Lack the nutrition necessary for health & long term survival   
  While absolute poverty is more common in peripheral nations, it exists in every society; rich & poor   
  Relative poverty is more salient in the more developed countries   
  People in rich nations focus on relative poverty   
 
CORE NATIONS ARE HIGH INCOME / DEVELOPED NATIONS 
 
 
Reason quality of life differs so much around the world 
 
 
Economic productivity is lowest in regions where population growth is the highest 
 
 
High income countries have the advantage 
 
 
SEMI PERIPHERAL NATIONS ARE MIDDLE INCOME, DEVELOPING NATIONS 
 
 
79% of global income supporting just 18% of humanity 
 
 
20% of global income support 70% of humanity 
 
 
PERIPHERAL NATIONS ARE LOW INCOME, UNDEVELOPED NATIONS 
 
  Poverty in poor countries is more extensive than it is in rich nations such as the US   
 
12% of planet's population survives w/ 1 % of global income 
 
  Low econ development & low income contributes to serious problems of hunger & starvation in these societies   
 
Poverty in poor countries is more severe than it is in the rich countries 
 
Link
The Map of the Median Age at Death demonstrates that while life span in the core nations is the highest, it is dramatically lower in peripheral nations, demonstrating that general econ develop directly impacts not only life chances but life span 
 
  In rich countries, most people die after 75   
  In poor countries half of all deaths occur among children under age 10   
  CHILD POVERTY IS RAMPANT IN ALL NATIONS   
  The extent & severity of child poverty is greatest in the low income countries   
  At least 100 million children in poor countries provide income for their families   
  The prevalence of absolute poverty means that children often beg, steal, sell sex, or work for drug gangs   
  To survive, children often must drop out of school, which has the effect of maintaining the cycle of poverty   
  Children are at high risk of disease & violence   
  Another 100 million children leave families to live on the streets each yr  
  Half of all street children found in Mexico City or Rio de Janeiro   
  BECAUSE OF THE INTERSECTION OF PATRIARCHY & THE CLASS SYSTEM, WOMEN EXPERIENCE MUCH HIGHER RATES OF POVERTY THAN MEN   
  Feminists have labeled the trend of single parent, female headed families having a high risk of poverty "the feminization of poverty"   
  Women in peripheral nations are at a high risk of experiencing single parenthood & poverty, resulting in a high level of the feminization of poverty   
  In the mid 2000s, 70 % of world's 1 billion people living in absolute poverty are women   
  When people are under the ultimate stress of starvation, families are likely to break down, w/ men leaving, women raising only the youngest of children, & the rest of the children fending for themselves by living in the street   
  Women in the poorer nations experience particularly severe poverty   
  In reich societies, women work is undervalued, underpaid, or overlooked   
  Women in peripheral nations commonly find work in sweatshops which make products for the core nations   
  Tradition keeps women out of many jobs   
  Traditional norms give women the responsibility for child rearing & household maintenance   
  Traditional norms give men control over 90 % of the land   
Link
The Bar Chart on the Use of Contraception by Married Women of Childbearing Age demonstrates that contraception is not uniformly available across the globe   
  Women in poor countries receive little or no reproductive health care & limited access to birth control   
  ECONOMIC & SEXUAL SLAVERY STILL EXISTS TODAY, & IS GROWING W/IN THE GLOBAL ECON  
  Anti Slavery International distinguishes four types of slavery:   
  a.  In chattel slavery, one person owns another   
  b.  Child slavery includes abandoned children or those living on the street   
  c.  Debt bondage occurs where people are paid less than they are charged for food   
  d.  Servile forms of marriage are also considered slavery   
  ON A GLOBAL SCALE, THE RICH ARE GETTING RICHER, & THE POOR ARE GETTING POORER  
  While the rich, core nations have competed w/ each other in the last 200 yrs, the gap btwn the rich & poor has become immense 
 
  The World Bank notes that: 
 
"As late as 1820, per capita incomes were quite similar around the world, & very low, ranging from around $500 in China & So Asia to $1,000 to 1,500 in the richest countries of Europe"
(World Bank, 2000: Chapter 3, p. 45). 
 
  At the beginning of this millennium, per capital income in many core nations was $30,500 compared to $500 in many peripheral nations such as Sierra Leon, Tanzania, & Ethiopia 
 
  20 % of the world's population, i.e. over 1 bb people, live on less than $ 1 / day 
 
  Almost half of the world's population, i.e. 2.8 bb live on less than $ 2 / day 
 
  Despite high levels of extreme world poverty, many Americans cannot understand the hatred fuming toward the US 
 
  The UN est that the number of people existing on less than $ 1 / day has increased directly w/ globalization during the 1990s (UN:  A Better World for All, 2000)
 
  The first ever est of global wealth inequality indicates that the top 2 % of people in the world own over half of all the wealth, while the bottom 50 % own less than 1 % 
 
  In relation to global income, the top 20 % of people receive 150 times the income of the bottom 20 % 
 
  30 yrs ago, the top 20 % of people receive just 60 times the income of the bottom 20 % 
 
  There are 800 mm chronically undernourished people in the world, w/ another 2 bb experiencing crucial deficiencies in nutrients 
 
  UNICEF reports that malnutrition is a factor in about 55 % of the 12 mm preventable deaths among children under 5 each yr
 
  It has not been since the Mid Ages & the bubonic plague, i.e. the Black Death, that any single cause has killed children at the rate that simple poverty & malnutrition are killing children today 
 
  ON A GLOBAL SCALE, THE RICH ARE GETTING RICHER, BUT THE POOR CAN GET NO POORER  

 
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Map of the Median Age at Death

Source: World Bank (1993), w/ updates by Macionis


The Map of the Median Age at Death demonstrates that while life span in the core nations is the highest, it is dramatically lower in peripheral nations, demonstrating that general econ develop directly impacts not only life chances but life span 


 
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Bar Chart on the Use of Contraception by Married Women of Childbearing Age

Source: UN Development Program (2005


The Bar Chart on the Use of Contraception by Married Women of Childbearing Age demonstrates that contraception is not uniformly available across the globe 


 
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  Outline on  Social Mobility
External
Links
  Project:  Your Experience of Social Mobility
Link
  Social mobility is the frequency w/ which people move up or down in a society's economic hierarchy  
  Social Mobility is also known as socioeconomic mobility       or simply               mobility  
  Socioeconomic mobility refers to mobility in all of the dimensions of stratification:   economic, prestige, & power  
  Social scientists frequently refer to upward social mobility or downward social mobility  
  Kerbo demonstrates that the US class structure is very stable; i.e., there is not great mobility
 
Percent of Income Earned by Lowest & Highest Quintile
 
1947
1970
1992
 Lowest Fifth 
5  %
5 % 
4 %
 Highest Fifth 
43 %
41 %
45 %

NOTE:  The 70s were the best years for the lower class & the worst for the upper class /corporate class

 
 
The top & the bottom of the stratification system have the lowest levels of social mobility in the US  
  An example of the low level of social mobility in the US is that one out of 10 sons of manual laborers will attain professional employment, while seven out of 10 sons of professional workers will  
 
In the US, the middle of the stratification system has the highest level of social mobility ( i.e. low occupational inheritance w/ higher intergenerational mobility )  
  There is a strong relationship between stratification and socioeconomic mobility in that there is more mobility in societies that have more equality  
  There are six fundamental types of stratification systems, each of which dominated a particular historical period, each of which fosters a particular level of social mobility
a.  Primitive communal system ( aka hunter gatherer society or tribal society )
b.  Slavery system  (two types:  conquest & racist)
c.  Caste system
d.  Feudal system ( aka estate system )
e.  Class system  ( aka capitalist or state capitalist system )
f.  Post-industrial system ( aka global system )
 
  Each type of economic system fosters a particular level of social mobility  
  Furthermore, particular economic systems have subtypes as is seen w/ pure capitalism, state capitalism, industrial capitalism, a service economy, etc.  
  There are EIGHT characteristics of strat systems in that they may be open, closed, vertical, horizontal, exchange, intergenerational, intragenerational, & structural  
  Open stratification systems have a high level of social mobility
 
  In an open stratification system, a person's position in society is attained as a result of what the person has done  
  Achieved status has substantial influence in an open stratification system
 
  Ascribed status has little influence in an open stratification system  
  An open stratification system is the type of system where achieved statuses have substantial influence over the social status a person attains in adulthood  
  Closed stratification systems have a low level of social mobility  
  In a closed stratification system, a person's position in society is attained by birth-right, e.g., race, sex, family, etc.  
  Achieved status has little influence in a closed stratification system  
  Ascribed status has substantial influence in a closed stratification system  
  A closed stratification system is the type of system where ascribed statuses largely determine a person's life chances  
  Vertical social mobility is movement up or down the stratification system, i.e. to a better or worse position; i.e. from working class to middle class from corporate class to upper middle class  
  Vertical mobility is the movement form one occupational position to another of higher or lower rank  
  Vertical mobility describes upward or downward movement in the standard of living as measured by income, prestige, autonomy, etc.  
  Conditions affecting vertical mobility include disability, formal demotion, lay-off, bumping, downsizing, closing, etc.  
  The greater the degree of vertical mobility, the more open the class system, the greater the vertical mobility, the closer the society is to the value of equal opportunity  
  An example of upward vertical example is movement from police officer to public school teacher  
  Horizontal social mobility is movement across positions of roughly equal rank  
  Horizontal social mobility is the mobility that most people experience
It is primarily from one type of job to another while a person's income, status, power, influence stay relatively the same
Of course people hope to do better on all dimensions as they advance their career, but few achieve enough to change class
 
  Horizontal mobility is the movement from one position to another of equal rank in the occupational structure  
  Examples of horizontal mobility include 
- moving from supervisor to manager or gaining seniority & status on the job
- the Electrician who leaves job w/ GM for job w/ Boeing even though it may include a sizable raise who is thus still a member of the middle class
 
 
Exchange mobility, aka churning, denotes a type of social mobility where there is little societal social mobility, but high levels of individual social mobility
 
 
Exchange mobility, aka churning occurs when someone's absolute position changes in relation to others
 
 
Exchange mobility, aka churning, denotes relatively equal amounts of upward & downward social mobility, which often gives the illusion of upward class mobility
 
 
The concept of exchange mobility, aka churning, denotes that
 
  - there are many people moving up the socio-economic scale as there are moving down the socio-economic ladder  
  - while it appears as if many people are moving up the socio-economic ladder, in reality those moving up are replacing those moving down  
  - people fall in and out of each class ( churning ) because of continuing economic competition  
  - once a person is poor, the chances are good that they will get out of poverty, but not very far  
 
The concept of churning describes the fact that while a particular number of people may experience upward vertical mobility in a given year, usually nearly an equal number of people experience downward vertical social mobility
 
 
The media & our ideology reflects upward class mobility ( things are improving ) therefore we are more likely to see the upward mobility & ignore the downward mobility
 
 
Churning is also created by simultaneous status churning & by horizontal mobility  
  While the US has a poverty rate of 15 %, in a ten year period, 25 % will be in poverty at least once  
  43 % to 60 % of the poor do not move out of poverty for any length of time & thus, 67 % to 40 % do get out for at least a while  
  Thus, at least 17 mm adults & children are chronically poor & 33 mm fall in & out of poverty or rise into the Working Class or higher  
  It is the group of poor who rise into the working class who could significantly benefit by structural changes  
  Intergenerational mobility is the attainment by people of a socio-economic status that is higher or lower than their parents  
  W/ Intergenerational mobility, there is a changing proportion of higher & lower class families  
  When sociologists compare a person's status with that of his or her parents, they are looking at intergenerational mobility  
  Upward intergenerational occupational mobility occurs when a person's occupation/class as compared to parents, is higher  
  Intragenerational mobility compares the occupational position of a person over an extended period of time  
  Intragenerational mobility compares a persons 1st, 2nd, 3rd, etc. jobs  
  Upward intragenerational occupational mobility occurs when a person's occupation/class as compared to contemporaries, is higher  
  Table 11-2.1  Outflow Mobility:  An analysis of Outflow Mobility shows that 
- occupational inheritance was quite similar in 1962 & 1973
- nonmanual occupation have the highest degree of occupational inheritance
- farm workers have the lowest rate of occupational inheritance
Link
  Table 11-2.2   Inflow Mobility:  An analysis of Inflow Mobility shows that 
- occupational recruitment was very similar in 1962 & 1973
- farm work has the highest rate of self recruitment
- there is a higher rate of upward than downward mobility
Link
  Mobility in the US is slightly above average for industrialized country, but it is less than most people assume   
  There is a direct relationship btwn stratification and mobility as seen in the fact that only one out of 10 sons of manual laborers will attain professional employment, while seven out of 10 sons of professional workers will attain professional employment  
  The top & the bottom of the stratification system have the lowest levels of social mobility in the US  
  From the view point of inflow & outflow mobility, low social mobility is created by high occupational inheritance & low intergenerational mobility  
  Thus, the top & bottom of the stratification system have high occupational inheritance & low intergenerational mobility  
  In the US, the middle of the stratification system has the highest level of social mobility  
  In the US, the middle of the stratification system has low occupational inheritance & high intergenerational mobility  
  Structural mobility is a type of mobility where classes of people improve their socio-economic position  
  Structural mobility occurs when there has been a growth in the economy of better paying, more pleasant, higher status, white collar jobs, and a decline in the number of blue collar jobs  
  Structural mobility describes ability to move to different occupation; such as from industry to service, & results from large scale changes in the economy  
  The occupational opportunity structure is dependent on structural mobility, the health of economy, immigration, etc.  
  In the industrialized modern nations, structural mobility occurs because of an increased proportion of jobs in the higher status, white collar categories  
  Growth in the economy of better paying, more pleasant, higher status, white collar jobs, & a decline in the number of blue collar jobs increases structural mobility  
  Structural mobility is the opposite of exchange mobility  
  The US has a strong value that there is a high level of social mobility, but in reality there is a high level of exchange mobility & little structural mobility  
  Although the US has little more mobility than most other industrialized societies, Americans believe & feel that there is a lot of mobility & that America is the land of opportunity where everyone who works hard can get ahead
 
  Historically, the US experienced positive structural mobility, but there have also been periods of negative structural mobility
 
  The historic eras which marked changes in structural mobility include:
-  "the land grab" in the mid 1800s
-  after the Industrial Revolution & the legalization of unions
-  in the 1930's, the Great Depression
-  after WW2 
-  after the Vietnam War
-  the Reagan Era 1980s & early 1990s
-  from the early 1990s to 2001
-  today?
 
 
The US experienced positive structural mobility until "the land grab" was completed in the mid 1800s & then there was a long period of exchange mobility 
 
  After the Industrial Revolution & the legalization of unions, the working class gained & experienced positive structural mobility  
  In the 1930s, the US experienced negative structural mobility as a result of the Great Depression  
  After WW2, the US experienced positive structural mobility as a continuing result of industrialization, the Labor Movement & Pax American  
  After the Vietnam War, from the mid 1970s until the early 1990's the US experienced negative structural mobility  
  From the early 1990s to 2001, the US experienced slight positive structural mobility but mostly exchange mobility  
 
70 % of Americans agree that "America is the land of opportunity where everyone who works hard can get ahead"
 
  80 % agree that "people who grew up in rich families have an average or better than average chance of getting ahead"  
  50 % believe that blacks, women, & working class families have an "average or better than average chance of getting ahead"  
  But the groups of blacks, women & working class families have a poorer than average chance of getting ahead  
 
The Horatio Alger Myth is the belief that anyone, no matter how poor, can succeed on a grand scale  

 
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Internal
Links

Outline on the  Causes of Poverty
External
Links
 
-  Project:  Poverty:  Theory & Experience
Link
  -  ProjectVideo:  The New Poor
Link
  -  Video:  The New Poor       2:30
Link
  There are FOUR economic conditions that affect the poor
a.  falling real wages
b.  higher accepted unemployment
c.  deindustrialization
d.  expansion of service economy
 
  Today, there are SEVEN broad theories that explain poverty
1.  The functionalist explanation of poverty holds that poverty motivates people to take the more difficult jobs
2.  The conflict theory explanation of poverty is that inequality & poverty exist because the wealthy & the powerful benefit from it & have enough power to make the social system work to protect their interests
3.  The common view holds that the poor are lazy, promiscuous & would rather "go on the dole"
4.  The dominant or popular view holds that individual characteristics create poverty
5.  The culture of poverty view holds that poverty directly influences individual characteristics through the process of socialization, and also that political economic forces indirectly influence poverty
6.  The situational view holds that the poor exhibit a practical reaction to their situation
7.  The structural view holds that political economic forces directly influence poverty
 
  In the recent past, Social Darwinism held that the poor were not as evolutionarily developed as successful people  
  1.  The functionalist explanation of poverty holds that poverty motivates people to take the more difficult jobs  
  The functionalist view of poverty was best developed by Kingsley Davis & Wilbert Moore in 1945 in an article entitled "Some Principles of Stratification"  
  Davis & Moore's argument, in brief , is that  
  a.  the most critical jobs require more difficult training, & are more difficult in general  
  b.  In order to get people to take the difficult jobs, like being a doctor, we need to pay more for that job, & less for the easy jobs, such as street sweeping  
  2.  The conflict theory explanation of poverty is that inequality & poverty exist because the wealthy & the powerful benefit from it & have enough power to make the social system work to protect their interests  
  Conflict theorists hold that it is in the interest of the wealthy to keep things as they are; i.e. preserve the status quo  
  Conflict theorists hold that it is in the interest of the poor to pursue social change  
  Conflict theorist note that the poor have not pursued social change, & the system has not changed because  
  a.  capitalism has raised the standard of living for those in the industrialized world  
  b.  the democratic reforms of the "trust-busters," the New Deal, et al, have curtailed the excesses of capitalism  
  c.  democratic reforms have added rights & power to those at the bottom of the system in the form of civil rights, the Labor Movement, etc.  
  3.  The common explanation of poverty holds that the poor are lazy, promiscuous & would rather "go on the dole"  
  The common view today generally encompasses THREE  factors   
  a.  Poor people are simply lazy  
  b.  Poor people have loose morals causing too many children & out of wedlock pregnancy, both of which cause poverty  
  Poor people do begin sexual activity earlier, but overall they are no more promiscuous  
  Poor women have a small pool of "marriageable men," thus poor women have more sex & babies out of wedlock, but at the same overall level  
  c.  The welfare dependency view of poverty is that poor people would rather "go on the dole" than work  
 
An Analysis of the Pie Chart on the Work Status of Poor People in 2000 demonstrates that over 50%, a majority, of poor people worked or attended school for all or part of the year  
  The concept of exchange mobility explains how new people keep falling into poverty  
  The western value of individualism holds each person is responsible for their own lot in life & thus western culture generally supports the belief that the rich are rich because they work hard, are skilled, etc., while poor are poor because they are lazy, unskilled, etc.  
  Individualism also holds that the individual is more important that the group & therefore the govt should not infringe upon the rights of individuals to pay taxes to pay welfare for a group of poor people  
  The US has the strongest value of individualism, compared to any other nation, which comes from
- our frontier ideology
- our perception & reality of the US as a land of opportunity
- the belief that anyone can get ahead in the US
 
 
In general, in the US, people do blame the poor for being poor & for many other social problems
 
  About half of the U.S. population believes that the poor lack thrift, do not give enough effort, have loose morals, or are drunks  
  Table  9 - 5:  Comparative Attitudes Toward Inequality & Govt Involvement in the Economy to Reduce Inequality demonstrates that the US has the most unfavorable attitudes toward inequality, tending to blame the poor, & for govt involvment in reducing inequality  
  Table 9 - 6:  General Subject & Funding of Poverty Research in Major Sociology Journals:  1965 to 1975 and 1984 to 1994 demonstrates that the social sciences focus on poverty is high regardless of low govt funding for those studies  
  And the poor themselves often hold demeaning beliefs about other poor people  
  The negative view of the public toward the poor is reflected in our acceptance of higher inequality as seen in little consistent support for govt action to reduce unemployment and income inequality  
 
4.  The dominant or popular view holds that individual characteristics create poverty & the strongest argument in the dominant view is that the poor are biologically or genetically inferior  
  5.  The culture of poverty view holds that poverty directly influences individual characteristics through the process of socialization, and also that political economic forces indirectly influence poverty  
  6.  The situational view holds that the poor exhibit a practical reaction to their situation  
  7.  The structural view holds that political economic forces directly influence poverty  

 
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Internal
Links

 Outline on the Dominant or Popular Views of the Cause of Poverty
External
Links
  4.  The Dominant or Popular View holds that individual characteristics create poverty & the strongest argument in the dominant view is that the poor are biologically or genetically inferior  
  In the early 1900's, social scientists developed the school of thought that came to be called Social Darwinism  
 
In the social sciences, Social Darwinism was advanced by
 
 
- the American sociologist William Graham Sumner ( d. 1910 )  
 
- the British sociologist Herbert Spencer ( d. 1903 )  
 
Social Darwinism held that:
- the poor were not as evolutionarily developed as successful people
- the poor are unfit to survive the competition 
- the rich are the fittest
 
 
We should have no govt programs to assist the poor because they will degrade the gene poor by breeding like insects
 
 
The rich admired this point of view of Sumner, Spencer & other social Darwinists & Andrew Carnegie supported Sumner's work
 
 
Simmel ( 1908 ) & Gans ( 1972 ) point out that social Darwinism & similar ideologies provide the nonpoor w/ a justification for poverty & a group of people they can look down on
 
 
Contemporary writers such as George Gilder & Charles Murray wrote that the poor had a number of genetic inferiorities
 
  The "Murray Thesis" in Losing Ground, (1984) was that people stay on welfare to avoid work  
  In his book, The Bell Curve, Hernstein wrote that the poor have low average IQs  
  Hernstein's thesis of low IQs for the poor has been shown to be false in many studies that have been conducted since the advent of the IQ test  
  Hernstein is correct in thaat the poor are more susceptible to env factors such as poor childhood nutrition, exposure to lead, poor or nonexistant health care, significant lack of socialization/stimulation, etc. all of which can lower IQ, than are the other classes  
  This school of thought that sought to demonstrate the inferiority of the poor supported Reaganomics, trickle down economics, as the only way to assist the poor because they need the rich to direct them  
  Glider, Murray, Reagan, et al believed that assistance to poor is unfair to the rich, & a waste of time  
 
Wealth and Poverty ( 1981) Gilder
The Bell Curve (1994) Richard Hernstein
 
  A Harvard panel determined that the work of Gilder, Murray, et al was shoddy & even deceitful:  “They have bamboozled everybody.”   
  The Harvard panel found that the poor may indeed have a lower IQ, but this is because they are poor, not the other way around  
 
A study which countered the Murray Thesis showed that the number of people on welfare went up while amount of benefits went down as seen in the example that the value of Food stamps fell 22 % from 1972 to 1984
 

 
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Internal
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 Outline on the  Culture of Poverty
External
Links
 
5.  The Culture of Poverty View holds that poverty directly influences individual characteristics through the process of socialization, and also that political economic forces indirectly influence poverty
 
 
Poverty creates FOUR situations which create the culture of poverty
1.  Poverty presents unique problems in living
2.  Solving or dealing w/ these problems requires "unique" lifestyles
3.  Poverty creates social interaction among the Poor & social isolation from other classes, i.e. the unique lifestyle 
4.  This interaction & isolation of the poor embodies  a (sub)culture of poverty; i.e.,  common values, attitudes & behavior
 
 
Oscar Lewis, a social anthropologist, is considered to be the father of the culture of poverty thesis
 
 
Oscar Lewis' most famous works include:  Five Families   (1959),  The Children of Sanchez   (1961), La Vida   (1966) 
 
  Lewis has FIVE major points to his culture of poverty theory
 
 
a.  Because of the conditions of poverty, the poor are presented w/ unique problems in living ( compared to the nonpoor )
 
 
b.  In order to cope w/ these problems, the poor follow aunique lifestyle
 
 
c.  Through collective interaction & in relative isolation from the nonpoor this poor lifestyle becomes a common lifestyle which produces common values, attitudes, & behavior
 
 
This lifestyle of the poor & set of knowledge, beliefs, values & norms is called the culture of poverty, which, more accurately, is a subculture
 
 
d.  Once the culture of poverty becomes common, i.e. becomes institutionalized, it becomes independent of the social conditions of poverty that produced it because children & adults are socialized into this subculture of poverty
 
 
Thus one can embrace the culture of poverty, the knowledge, beliefs, values & norms of the Poor w/o being poor
 
 
e.  The culture of poverty becomes so powerful that even if opportunities arise, the poor will not be able to take advantage of them
 
 
On an individual level, the culture of poverty explanation holds that people in poverty are affected by NINE factors, including:
1.  strong feelings of marginality, of helplessness, of dependence & inferiority
2.  a weak ego or lack of self confidence
3.  a lack of impulse control
4.  a present time orientation
5.  little ability to defer gratification 
6.  little ability to plan for the future
7.  a sense of fatalism
8.  the value of male superiority ( machismo )
9.  a high tolerance for psychological pathologies
 
 
On a family level, the culture of poverty can be seen in FIVE factors
a.  The absence of a long childhood
b.  The early initiation into sex
c.  Marital unions such as free unions or consensual marriages
d.  A high incidence of the abandonment of wives & children
e.  Female headed families
 
 
On a community level, the Culture of Poverty can be seen in FOUR factors
a.  A lack of participation in the institutions of the wider society
b.  Low voting rates
c.  Low participation in politics
d.  A tendency to be socially conservative
 
 
Project:   We have avoided the question, does each class have its own subculture?  That is do the UC, CC, UMC, MC, LMC, LC, SP all have different cultures?  Give examples of similar or different lifestyle, values, attitudes, behaviors, etc.]
 
 Link
Project:  what are some COP values, actions that operate on the Group Level & Societal Level:
Group level: 
Societal level: 
 
 
The critique of the culture of poverty view makes SIX points
1.  The situational view critique: ( see below )
2.  COP assumes an overly uniform view of culture & values
3.  The differences are an effect rather than a cause ( COP says they are interrelated )
4.  Some studies contradict the COP view that the poor won't work
5.  Only 1% of people stay below poverty line for nine years in a row, but only 3 in 10 children raised in poverty set up poor households
6.  Those long term welfare recipients are more accurately described as their own class:  underclass, hard core poor, truly disadvantaged
 

 
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Project on the Group & Societal Levels of the COP
Group level:  gang behavior, expectations of peer groups,   Societal level:  counterculture, expectations of teachers, etc., social services expectations


 
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Links

 Outline on the  Situational View of the Cause of Poverty
External
Links
 
6.  The Situational View holds that 
- the poor exhibit a practical reaction to their circumstances
- the poor do not possess a culture of poverty; they possess mainstream American values
- political economic forces directly influence poverty; i.e. they create the situation
- the poor have a "COP" because they are reacting realistically to their situation:  ( COP critique # 1. )
 
 
Lewis' theory of the culture of poverty is similar to Merton's theory on anomie in that the COP is created by society instilling middle class values, but providing no means to achieve them
 
  The Table on Merton's Analysis of Anomie shows that to avoid anomie, socially sanctioned goals must match socially institutionalized means   
      See Also:  Merton  
 
For Lewis, the COP is created by society, first, by providing no means to achieve sanctioned middle class goals thus the "new Poor" frequently feel anomic as would a failed innovator
 
  The poor fail to make it in society, & such are anomic  
  The poor then get frustrated & reject the goals, thus becoming a retreatist, i.e. retreating to the COP thus when opportunities arise, the poor reject opportunities as they have rejected middle class values  
 
The difference between the COP view & the situational view is that the COP believes the culture creates the circumstances, the situationists believe the circumstances creates the culture
 
 
The situational view views the behavior of the poor as rational or pragmatic
 
  It is a functional adaptation for poor married people to separate, because otherwise it is much more difficult to get govt support  
  The separation of marriages of poor people was addressed by the 1994 welfare reform in that it is now easier for the man on welfare to stay in the home  
  The poor shun education because they do not expect a college education  
  The poor expect to go to work in a job where education does not matter much  
  Studies show that if the poor are offered opportunities, they will take them  
  A weakness of both the COP view & the situational view is the focus on the individual, & that these views have not done large scale analyses
 
 

 
External
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   Outline on  Merton's  (1910 - 2003 )
 Revision of Anomie
External
Links
  -  Video:  Merton on Anomie      5:21 
Link
 
-  Project:  Anomie & Lifestyle 
Link
  -  Project:  Anomie & Your Research 
Link
  INTRO:  MERTON REFINED ANOMIE TO ADDRESS DIFFERENT TYPES OF ANOMIE IN DIFFERENT SEGMENTS OF SOCIETY   
 
Merton revised Durkheim's concept of anomie   
  Structural functionalism had said that social values & norms were universal in that ALL values & norms are functional for society   
  Merton posits that social values & norms are not necessarily universal for society in that some values & norms may be functional for one segment of society, or one historical era, & not functional for another   
 
Merton revised Durkheim's concept of anomie which results when the goals of society break down, i.e. the social order is weakened 
 
 
Merton held that society socializes members for certain needs & desires, but fails to provide legitimate opportunities /  means to satisfy them, then anomie & crime result   
 
It is not poverty itself that creates deviance, but poverty surrounded by wealth, i.e. the income gap   
  Merton's anomic argument is similar to the economic or achievement explanation of crime   
  For Merton, the problem is not so often that society fails to provide norms, but that society socializes members for certain needs & desires but fails to provide legit opportunities to satisfy them   
  Society does not provide the means to achieve normal goals of society   
  The "strain" between our culture's emphasis on wealth & the limited opportunity to get rich gives rise, especially among the poor, to theft, the sale of drugs, or other street crime   
 
See Also:   Durkheim   
  See Also:   Durkheim on the Problem of Social Order, Deviance, & Crime   
 
See Also:   Anomie   
  The Table on Merton's Analysis of Anomie demonstrates that to avoid anomie, societally sanctioned goals must match societally institutionalized means 
Link
  For Merton, there are FIVE types of lifestyles that compensate for societally sanctioned goals & institutionalized means, including:  the conformist, the innovator, the ritualist, the retreatist, & the rebel   
  CONFORMISTS HAVE NO ANOMIE BECAUSE THEY ACCEPT THE MEANS & GOALS ESTABLISHED BY SOCIETY   
 
The conformist     accepts means        accepts goals   
  The conformist is the 'normal person'   
  Merton believed that most of people color btwn the lines, pay taxes, & generally accept things as they are   
 
Merton viewed a normal person as accepting society's goals & means to attain those goals   
  Conformity lies in pursuing conventional goals through approved means   
  INNOVATORS HAVE ANOMIE BECAUSE THEY REJECT THE MEANS, BUT ACCEPT THE GOALS ESTABLISHED BY SOCIETY   
 
The innovator        rejects means        accepts goals   
  Accepts the goals society offers, but rejects the normal means for achieving those goals:   
  Examples:  Business entrepreneur:  do business in a new way 
Criminal:  develops a new/illegal was to do something 
Artist:  develops new or innovative artistic style, content, etc. 
 
  RITUALISTS HAVE ANOMIE BECAUSE THEY ACCEPT THE MEANS BUT REJECT THE GOALS ESTABLISHED BY SOCIETY   
 
The ritualist          accepts means      rejects goals   
  Rejects the goals of society (none of that wealth & luxury, thank you) but yet comes to work every day to save up to buy a sailing boat or a hut on the mountain side   
  RETREATISTS HAVE ANOMIE BECAUSE THEY REJECT THE MEANS & GOALS ESTABLISHED BY SOCIETY   
 
The retreatist       rejects means        rejects goals   
  Wants neither goals of society & also does not want to work at a normal job: 
Wants to live on a boat or in a hut, etc. & supports such a goal through some strange life style (collecting/selling junk to illegal activities)
 
  Examples:  hobos, alcoholics, and drug addicts   
  REBELS HAVE ANOMIE BECAUSE THEY ESTABLISH NEW MEANS & GOALS COMPARED TO THOSE OF SOCIETY   
 
The rebel               new means           new goals   
  For Merton, the rebel does not want society's goals, but creates new unique goals   
  For Merton, the rebel lives simply, & prepares for Armageddon, the revolution, etc.   
  For Merton, the rebel does not want society's methods, but develops their own in harmony w/ their own goals   
  Examples of rebels might be those who raise & live off a garden or dig a bomb shelter   

 
Internal
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 Outline on an  Intro to Class & False Consciousness
External
Links
  -  Project:  Class & False Consciousness
Link
  CLASS CONSCIOUSNESS OCCURS WHEN GROUPS ACCEPT THE IDEOLOGY RELEVANT TO THEIR OWN INTERESTS
 
  Class consciousness is when subordinate groups do not accept the ideology of the dominant group, but accept ideology relevant to their own interests
 
  Class consciousness is when a group of people embrace a culture / life- style that represents their own interests
 
  An example of class consciousness is that the rich believe in their own superiority & the natural inferiority of the poor
 
  An example of class consciousness is that the middle class believe in equal opportunity for all & not in the superiority of the rich & not in the natural inferiority of the poor
 
  FALSE CONSCIOUSNESS OCCURS WHEN SUBORDINATE GROUPS ACCEPT THE IDEOLOGY OF THE DOMINANT GROUP & BELIEVE THINGS THAT ARE NOT IN THEIR OWN INTEREST
 
  False consciousness is when a group of people embrace a culture / life-style that harms their own interests
 
  For Marx, when non upper class people accept the world view of upper class, they have false consciousness
 
  An example of false consciousness is that the middle class indulging in consumerism, believing the rich are deserving, the poor are not deserving
 
  An example of false consciousness is that during the 1972 Presidential race, McGovern, the Democratic candidate, proposed limiting inheritance to .5 mm & this position was opposed by the vast majority of people even though over 90%  wouldn't be affected
 
  Class consciousness occurs when a group of people w/ a common self interest correctly perceive that interest & develop beliefs, values, & norms consistent w/ advancing that interest
 
  The concepts of class & false consciousness do not denote correct & incorrect consciousness  
  Historically, the class & false consciousness Ideologies of some groups have been accepted as wrong by most observers  
  Marx saw the workers, i.e. the proletariat, as the only group capable of class consciousness
 
  False consciousness is the beliefs, values, etc. that work against a group's / class' self interest
 
  Both workers & owners can experience false consciousness
 
 
Many theorists believe this is the common condition today
 
 
For Marx, we have either class or false consciousness  
 
For Marx, class consciousness develops out of working class experience/context  
  An important aspect of class is the extent to which a society has members who are aware of, & identify w/ the social classes to which they belong  
  Americans are less class conscious than people in other societies  
  Nearly all Americans think of themselves as "middle class" or "working class"  
  In many societies, the wealthy readily identify themselves as upper class  
 
There are FIVE reasons the US has no class consciousness
1.  The culture & ideology of the US is that of equal opportunity
2.  The media & all social structures support the Horatio Alger Myth
3.  The US has a relatively weak Labor Movement & no Labor Party
4.  Education is tied to social class in the US
5.  The US once had more structural mobility
 
 
1.  THE CULTURE & IDEOLOGY OF THE US IS THAT OF EQUAL OPPORTUNITY
 
  As a result of  the US's foundation on the counter value of rebellion against title & monarchy, & the dissemination of the Horatio Alger Myth, the US's ideology mystifies class status  
  American's prefer not to openly acknowledge their class status  
  Americans prefer to believe that people have similar statuses & similar situations in life; that we are all pretty much alike  
 
2.  THE MEDIA & ALL SOCIAL STRUCTURES SUPPORT THE HORATIO ALGER MYTH
 
  America's entertainment media, education system, all sectors of society, support the belief that anyone who tries can succeed, & that love will easily overcome social class differences btwn people  
  Examples of media support of false consciousness:  
  Pretty Woman  
  Dirty Dancing  
  White Palace  
  The Horatio Alger Myth supports false consciousness, preventing people from acting in their own interests  
      See Also:  The Horatio Alger Myth  
  The widespread presence of the Horatio Alger Myth, & similar ideological components in Am culture illustrates that it is in the class interest of the wealthy to promote the image of Am as a society where class doesn't really matter & where anyone can "make it"  
 
When people perceive that there is not equal opportunity, they criticize the system & support change
 
  When people have false consciousness, when they believe that anyone can succeed, they accept the system as fair & legitimate  
  As long as people have false consciousness, believe in the fairness of the system, they will not demand changes that threaten the wealthy & the powerful  
  It is in the interest of those w/ wealth, including ownership & control of the media, to promote the Horatio Alger Myth, the ideology that the system is open & fair  
 
3.  THE US HAS A RELATIVELY WEAK LABOR MOVEMENT & NO LABOR PARTY
 
  There is evidence that people who question the ideology of fairness are treated more harshly in the US than elsewhere  
  For example Sexton, 1991, demonstrates that Labor Unions & Labor organizers were, & are, repressed more harshly in the US than in Europe  
  In the 1930s, the US used the military, police & private security companies to interfere w/ strikes, often w/ the use of violence & the hiring of strikebreakers was common  
  Today, the US has the most restrictive labor laws of any industrialized country, & has the least amount of both physical & labor rights protection  
  In Canada, all public employees have the right to organize, bargain, & strike, while in the US they may not strike, taking much power away from organization & bargaining  
  In the US, companies can refuse the contract of a newly certified union, demanding a recertification  
  In Canada, to form a union, unions need only submit signed cards from a majority of workers  
  While the process of using signature cards to obtain union certification is legal in the US, in practice, signature cards & most certification elections are contested  
  The lack of a Labor Movement means there has been no Labor Party in the US, resulting in a general weakening of the political left  
  Canada & most European countries have a major labor or "social democratic" party  
  In Canada & Europe income & vital services such as health care are more equally distributed  
  4.  EDUCATION IS TIED TO SOCIAL CLASS IN THE US   
  Because most educational systems are funded by state & local taxes, usually property taxes, educational systems are much more effective in more wealthy regions, enhancing their class consciousness  
  The upper class sends their children to private school, enhancing their class consciousness  
 
5.  THE US ONCE HAD MORE STRUCTURAL MOBILITY, WHICH MEANT THAT CLASS RELATIONSHIPS, & HENCE CLASS CONSCIOUSNESS, WAS LESS APPARENT TO PEOPLE & ALSO LESS NECESSARY   
 
The US had a rapidly expanding economy through the 1950s, providing ever more, higher paying jobs lessening the need for class consciousness  
  As the rest of the world has moved to a modern, industrial economic base, the US faces more global competition, resulting in less economic expansion increasing the need for class consciousness  
  Less economic expansion creates less jobs, which creates less structural mobility making class consciousness more necessary  

 
Internal
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 Outline on the  Horatio Alger Myth
External
Links
  The Horatio Alger Myth is the belief that anyone, no matter how poor, can succeed on a grand scale
 
  Americans generally believe that they have considerable social mobility  
  The Horatio Alger myth is the belief in social mobility  
  The Horatio Alger myth is an important part of Americans' ideology, of their false consciousness  
  Horatio Alger lived from 1832 - 1899 and wrote novels for boys
 
  Alger was born in Revere, MA
 
  Alger's stories were about boys who rose from poverty to wealth & fame through hard work, virtuous living, & luck
 
  Alger's novels reinforced an image of the US as a land where dreams could come true
 
  In Alger's novels, anyone could get rich, attain high social position, & power
 
  AKA rags to riches
 
  Alger wrote more than 130 books which sold about 40 mm copies
 
  Alger was one of the most influential writers in the US
 
  Ragged Dick      ( begun in 1867 )
Luck and Pluck  ( begun in 1869 )
Tattered Tom     ( begun in 1871 )
 
  1866 - 1896 Alger devoted much of his time & money to helping a home for orphans & runaway boys in NYC
 
  Alger used his experiences w/ the children as material for his novels
 
  The Horatio Alger myth is culturally embedded in the US
 
  70% of Americans believe that "America is the land of opportunity where everyone who works hard can get ahead" (Kluegel & Smith, 1986, p. 44)
 
  Over 80% of Americas believe that "People who grew up in poor families have an average or better than average chance of getting ahead" 
 
  Over 50% of Americans believe that Blacks, women, & working class families also have a good chance to get ahead
 
  The Horatio Alger myth is a myth because all of these groups have a considerably poorer than average chance of getting ahead, yet most people believe otherwise  
  The result of a culture embedded w/ the Horatio Alger myth is that people generally oppose efforts to reduce poverty because they incorrectly place most of the blame on the poor people themselves  
  The widespread presence of the Horatio Alger myth, & similar ideological components in Am culture illustrates that it is in the class interest of the wealthy to promote the image of Am as a society where class doesn't really matter & where anyone can "make it"  

 
Internal
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 Outline on   Out of Wedlock Births
External
Links
 
-  Supplement:  An Analysis of Out Of Wedlock Births in the United States;  Brooking Institute, August, 1996
Link
  -  Supplement:  Understanding the Rise in Illegitimacy
Link
  A SOCIO HISTL ANALYSIS OF OUT OF WEDLOCK BIRTHS SHOWS THAT THIS PRACTICE HAS MOVED FROM TABOO TO CONVENTIONAL  
  What today are commonly referred to as out of wedlock births were once called illegitimate births, & thus the children were called illegitimate or bastards  
  Children were considered to be illegitimate or bastards even if they were conceived out of wedlock  
  A bastard is a child begotten & born out of wedlock & were considered to be mongrel & inferior  
  Illegitimacy could be conferred on the mother & child if the child was conceived & / or born before marriage, or if they were the result of an adulterous relationship  
  Thus, illegitimacy & bastardness is slightly different than being born out of wedlock because even if a child is born of an adulterous relationship, today it is not considered to be born out of wedlock, but it the past the mother & child would have been given the illegitimate label  
  Generally illegitimate children were not entitled to the same rights as legitimate children & the mothers of such children were either not considered to be marriageable or if married, were shunned as adulterers  
  The illegitimacy ratio, or the % of births that are out of wedlock, has expanded rapidly for both whites & blacks since the beginning of the War on Poverty in 1965  
  THE DEMOGRAPHICS OF OUT OF WEDLOCK BIRTHS SHOW THAT THEY ARE INCREASING  
  The illegitimacy ratio measures the number of out of wedlock births as a percent of all births in a year   
  If there were 100 births in a society in a given year & 30 of those births were out of wedlock, the illegitimacy rate or ratio would be 30 %  
  Among whites, the out of wedlock birth rate has risen from 4 % of all births in 1965 to 23.6 % of births 1995  
  Among blacks, the out of wedlock birth rate has risen from 28 % of all births in 1965 to 69.9 % of births 1995  
  The percentage of non married women in their late teens, 20s & 30s has thus clearly grown over the last 3 decades  
  As the number of non married women has increased, the probability that these women will have children while unmarried has also grown  
  American society is now characterized by a growing number of non married women who as a group have an increasing tendency to bear children out of wedlock  
  In 1965 there were 23.4 births per 1,000 non married women aged 15 to 44 & by 1995, the number had risen to 45.1  
  Thus, the overall birth rate among non married women has nearly doubled over the last 30 years  
  The increase in out of wedlock births is particularly steep among young unmarried women  
  Among non married women aged 15 to 19, the birth rate per 1,000 women rose from 16.7 in 1965 to 44.4 in 1995  
  Among unmarried women aged 20 to 24, the birth rate rose from 39.6 per 1,000 to 70.3 per 1,000  
  While the total number of births has increased since the beginning of the War on Poverty in the mid 1960s, the number of children born to married couples has declined, falling from 3.47 million births in 1965 to 2.65 million births in 1995  
  From the 1960s to 1995, the number of births to non married women has quadrupled, rising from 0.29 million in 1965 to 1.25 million in 1995  
 
There were approximately 1.5 million births to unmarried women in the US during 2004
 
 
In the mid 2000s, the birth rate for unmarried women is 46.1 births per 1,000 for unmarried women aged 15 - 44 yrs
 
 
36 % of all births take place out of wedlock
 
  CAUSES OF OUT OF WEDLOCK BIRTHS INCLUDE SOCIAL ACCEPTANCE, ECONLY IND WOMEN, OUT OF WEDLOCK PATERNITY, ETC.   
  There are cultural & structural causes of the increase in out of wedlock births, including the   
  1.  decline in the social stigma against conception & birth out of wedlock  
  2.  decline in the portion of women of child bearing age who are married  
  3.  increase in the birth or fertility rate among non married women  
  4.  decline in the marriage rate  
  5.  decline in the birth or fertility rate among married women  
  6.  increased econ power of women, allowing them to support a family  
  7.  belief that a good single life is better for males & females & their children than a bad marriage  
  8.  laws & customs requiring the acknowledgment of out of wed lock paternity  
  9.  laws & customs requiring child support for out of wedlock children from the parent not raising the child, to the parent raising the child  
  10.  positive images of single parents & their children  
  IMPACTS OF OUT OF WEDLOCK BIRTH INCLUDE MORE SINGLE PARENT FAMILIES, MORE POOR SINGLE PARENT FAMILIES, & AN INCREASE IN THE CYCLE OF POVERTY  
 
It is well established that single parent, female headed families have a high risk of poverty
 
 
Feminists have labeled the trend of single parent, female headed families having a high risk of poverty "the feminization of poverty"
 
 
As the % of single parent, female headed families grew in the 1970s & 80s, so did the poverty rate
 
  The rate of out of wedlock births is higher among people who are already poor or grew up in poverty 
 
 
Many social scientists, including Wu (1996), found that both low income & declining income are associated w/ out of wedlock births for women aged 14 - 21, Black & White
 
  Poverty is as much a cause as a consequence of out of wedlock births
 
  Poor people have less access to birth control
 
  Poor women have a small pool of employed, marriageable men
 
  Women of all income levels are equally sexually active, but the longer time an unmarried spends in poverty, the greater their likelihood of out of wedlock birth
 
  Poverty harms self image & giving birth is one way a woman can improve her status & self image
 
  Poor people have less control over their lives & giving birth increases the control a woman has, at least in that one sphere of motherhood
 
 
Over 90% of children who live in a single parent home are likely to live in poverty during some time in their first 10 yrs. of life
 

 
Internal
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Top

 Outline on  Unemployment
External
Links
  -  Project: Video: Risky Business:  Family Crisis:  Unemployment
Link
  -  Video: Risky Business:  Family Crisis:  Unemployment     9:25 & 13:31
Link
  BEING OUT OF WORK IS NOT THE SAME AS BEING UNEMPLOYED BECAUSE THE LATTER IS AN OFFICIAL GOVTL DEFINITION   
  Unemployment is defined as the percentage of the labor force officially determined to be w/o work, & looking for work in a given month
 
  The labor force is defined as anyone who is 16 or older who is not institutionalized  
  In general, the labor force makes up about half of the total population
 
  -  Resource:  Worker & Labor Force as Units of Analysis for more on the definition of the labor force 
Link
  In order to be considered in the unemployed category by the govt., people must be in the labor force & are  
  a.  employed neither part time nor full time for pay or trade  
  b.  actively seeking work during the four weeks preceding the govt. survey of the labor force  
  c.  currently available to take work  
  d.  not out of work longer than 6 mos.  
 
Specifically, many groups of people are not considered to be part of the workforce, including students, those employed part time, prisoners, those considered to be incompetent (children, the mentally ill, etc.), the retired, the chronically unemployed, etc. because these people are not considered to be part of the labor force
 
  The unemployment rate (UR) is the number of unemployed people divided by the number of people in the labor force, multiplied by 100, to give a percentage  
  UR = (unemployed/labor force) X 100  
  A rise in the UR often indicates that the business cycle is about to enter a downturn; conversely, a decline often indicates economic improvement  
  The UR is higher in economically depressed areas & lower in prosperous areas, so URs indicate local labor market conditions  
  FRICTIONAL UNEMPLOYMENT IS THE UNEMPLOYMENT RATE OF PEOPLE BTWN JOBS   
 
Frictional unemployment is considered to be the unemployment that results from unavoidable delays btwn jobs takes time to find a new job  
 
Economists estimate that frictional unemployment is estimated,  to be 3% though some estimates are lower  
 
Frictional unemployment could be reduced by programs to match job openings more quickly w/ qualified candidates  
  During WW 2, unemployment fell to 1.6%, which is considered by some to be a more realistic minimum level of frictional unemployment  
  STRUCTURAL UNEMPLOYMENT IS LONG TERM OR BUILT IN UNEMPLOYMENT   
  Structural unemployment is the chronic gap btwn the number of jobs in the economy & the number of people seeking work  
  Structural unemployment results from economic shifts or the chronic shortage of jobs  
  During good times, a boom, a growth phase, structural unemployment makes of the biggest share of unemployment  
  In 2003 - 2004, a new & unique economic phenomenon, the "jobless recovery," manifested high economic growth rates (over 8%) but continuing high rates of unemployment, over 6%  
  Economists hope that the jobless recovery will be a short lived economic phenomenon, & not a new, higher level of structural unemployment   
  CYCLICAL UNEMPLOYMENT IS THAT WHICH IS AFFECTED BY ECON BOOMS & BUSTS   
  Cyclical unemployment is the component of unemployment that results from economic downturns  
  In a recession, depression or any economic downturn, cyclical unemployment makes up the biggest share of unemployment  
  Cyclical unemployment results from economic downturns  
  In his conception of the Sociological Imagination, C. W. Mills notes that unemployment is a public issue, but in most cases people individualize it, making it appear as a personal trouble  
  Unemployment is often a public issue, not a personal trouble  
  For Mills, the most important distinction btwn a public issue & a personal trouble is that the former requires a social solution, i.e. one person cannot resolve the issue, while w/ a personal trouble, the resolution lies solely w/ the individual  
  Different classes, occupations, races, genders, groups are affected differently by unemployment  
  UNEMPLOYMENT RATES HAVE BEEN 'POLITICAL FOOTBALLS' WHEN THEY WERE MANIPULATED TO MAKE A POLITICIAN LOOK GOOD   
  The Reagan administration increased allowable frictional unemployment, thus making unemployment appear lower  
 
President Reagan shortened the time one can be out of work & still be considered to looking from 1 yr. to 6 mos. 
 
 
Anyone who does not find a job in 6 mos. is considered to be chronically unemployed & is not considered to be part of the workforce
 
  As useful as labor force statistics are, the definitions used by the govt. are troublesome to many observers  
  Labor force participation, unemployment, etc. all include only those who produce goods or services for sale in the market  
  Labor statistics exclude many people who perform useful services outside the market economy, notably, homemakers & volunteers  
  When a homemaker reduces home work & takes a job, the person who is hired to help out around the home is counted in the labor force  
  DISCOURAGED WORKER IS THE OFFICIAL DESIGNATION FOR ONE WHO IS OUT OF WORK, BUT NOT CONSIDERED TO BE UNEMPLOYED   
  Discouraged workers are those persons in the labor force who are not counted as unemployed because they have been unemployed for such a length of time, as determined by the govt., that they are no longer considered available for work  
  Hodson & Sullivan point out that some workers stop looking for work because they believe no work is available  
  In December of 2003, only 1,000 new jobs were created in the economy, & it is estimated that 150,000 new jobs must be created each month just to keep up w/ labor force growth, but over 200,000 unemployed workers were moved from the official rolls of the unemployed to the category of discouraged workers & thus unemployment fell from 5.9% to 5.7%  
  Discouraged workers are officially removed from the labor force & are categorized as not in the labor force (NILF)  
  The BLS estimates that there were 600,000 discouraged workers in January of 1994  
  The BLS estimates that there were 200,000 discouraged workers in September of 2000  
  By excluding discouraged workers from the labor force, the official unemployment rate is too low in that it under represents the number of people who are out of work & would like a job  
  Those receiving unemployment insurance benefits are not used to estimate the unemployment rate because not every worker receives unemployment insurance benefits  
  See Also:  Unemployment Compensation  
  THE US ECON ALWAYS RESULTS IN UNEMPLOYMENT, CREATING JOB INSECURITY & A WKFORCE THAT IS UNABLE TO MAKE DEMANDS ON MGT BECAUSE THEY HAVE LITTLE ECON SECURITY   
  The Table on a Summary of Historical Unemployment Rates shows that the US has accepted ever higher rates of unemployment as normal
Link
 
During the 1940s, 50s, & early 60s unemployment was low, usually below 5%
 
  During the late 60s & 70s the US experienced "stagflation" denoting that the economy experienced stagnation, i.e. high unemployment sometimes above 10%, & simultaneous inflation
 
  In the recession of the early 1980s, unemployment reached over 10%
 
  One reason unemployment rose in the 70s & 80s is that the baby boomers reached working age & more women left home making & entered the workforce  
  Other reasons that unemployment rose in the 70s & 80s is that deindustrialization began, the Vietnam War was winding down, the oil crisis, shifts in the timber & farm industries, etc.  
  Women entered the workforce because under emerging gender norms, they were now allowed to, & because it became necessary for most families to have two incomes in order to maintain their standard of living  
  In the recession of the early 90s, unemployment reached over 8%
 
  From 1993 to 2000, the nation experienced its longest single period of growth, w/ unemployment falling to 4% by 2000
 
  In 2000, only 4% of poor people were unemployed, which was the lowest in many years
 
  The nation has been in a minor recession since late 2000 until 2004 w/ unemployment reaching nearly 6%
 
  WHILE MANY FEEL THE POOR ABUSE THE WELFARE SYSTEM, THE ECON CREATES A CLASS OF WKING POOR WHO CANNOT MAINTAIN A SUSTAINABLE LIFESTYLE & THUS FALL OUT OF WK INTO WELFARE   
  An Analysis of the Pie Chart on the Work Status of Poor People in 2000 demonstrates over 50% of the poor did work or attend school, but only some of those would legally be considered unemployed
Link
  In 2003, the unemployment rate in the US is over 5%
 
  In 2003, there are signs of a recovery in that economic growth is increasing, but the unemployment rate is not falling, resulting in the phenomenon of a "jobless recovery"
 
  Unemployment is a major hardship for all classes except the upper class & the corporate class in that all of the middle class, & below, experience lay offs or downsizing
 
 
When experiencing job loss, the middle classes experience a fall in their standard of living, being forced to live off of savings, or the sale of family assets such as the car or home
 
 
When experiencing job loss, the lower classes experience poverty, having few assets to sell
 
 
Most economists believe that increasing unemployment lowers inflation, thus there is a trade off btwn unemployment & inflation
 
  THE GOVT HAS A LOT BUT NOT TOTAL CONTROL OF UNEMPLOYMENT RATES, & CHOOSES TO KEEP RATES AT RELATIVELY HIGH LEVELS   
 
Unemployment hurts primarily the middle & lower classes, while inflation hurts primarily the upper classes  
  Many social theorists believe that the economy is designed to limit inflation at the expense of high unemployment  
  Unemployment rates are deliberately regulated by the govt by TWO major processes, including monetary policy & fiscal policy  
  Monetary policy is set by the Federal Reserve Bank who determines the interest rates & amount of $ in the economy  
  See Also:  The Federal Reserve Bank      http://www.federalreserve.gov/otherfrb.htm
Link
  Traditional economics sees an unsolvable conflict btwn interest rates, inflation & unemployment  
  Interest rates & unemployment vary inversely:  improvement in one, degrades the other  
  While high interest rates, inflation & unemployment do have all classes, they impact different classes differently  
  Unemployment does more harm to lower classes than it does to the upper classes  
  The Fed is commonly know at "the inflation fighter"  
  Fiscal Policy is set by the President & the Congress who determine the amount of govt spending  
  Foreign trade policy addresses imports, exports, tariffs, deindustrialization, but not unemployment  
  Some trade policies, such as NAFTA, provide for limited retraining if one can demonstrate that their job was lost due to NAFTA  
  THE CONTINUOUS HIGH UNEMPLOYMENT RATES HAVE BEEN CALLS ED INDUSTRIAL RESERVE ARMY, DENOTING THE ECON INSECURITY & SUBMISSIVENESS IT FOSTERS IN SOCIETY   
  Marx's concept of the industrial reserve army denotes that people in occupational structure can be laid off to protect profits, & rehired in booms  
  An industrial reserve army is an army of the unemployed which functions to keep wages low  
  The US has no domestic industrial policy, which is a set of policies & regulations that coordinate monetary policy, fiscal policy, business regulations, industrial development, worker training, worker retraining, etc.  
  In relation to unemployment, many social scientists believe that the published/official rates of unemployment is influenced by the public policy process, & is usually lower than the actual rate  
  For example, in 1988 there were 6.7 mm people actively seeking work but unable to find it resulting in an official unemployment rate of 5.5%  
  In 1988, the workforce of 121.8 mm also had 5.4 mm people who desired work, and were available to start work immediately, but were not actively looking for work because they were in school, ill or disabled, were keeping house, or were convinced they could not get a job  
  Adding in all the categories of the unemployed, which govt. economists exclude, results in a 10.5% unemployment rate in 1988  
  Statistics on categories of people who are unemployed but not listed as such may be found in the US Dept. of Labor, Bureau of Labor Statistics (BLS)  
  UNEMPLOYMENT AFFECTS THE MIDDLE & LOWER CLASSES THE MOST   
 
The Table on Occupational Differences in Unemployment shows that unemployment is distributed unequally across occupational groups
Link
  Unemployment is unequally distributed across social groups  
  The unemployment rate for blacks & Hispanics is about twice that for whites  
  Youth unemployment among 16 - 19 yr. olds is two to three times as high as the overall rate  
  Unemployment among minority youths reached 30% to 40% in the early 1990s  
  The Table on the Changes in US Unemployment Rates demonstrates that unemployment is a chronic problem in the US & that different groups experience different rates of unemployment 
Link
  The Table on Unemployment in Europe shows that unemployment is a chronic problem in many industrialized nations
Link

 
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 Outline on  Deindustrialization
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  DEINDUSTRIALIZATION IS THE PROCESS WHEREBY INDUSTRIES ARE PERMANENTLY LOST IN CORE NATIONS & TRANSFERRED TO SEMI - & PERIPHERAL NATIONS TO GAIN ADVANTAGES SUCH AS LOW WAGES, LACK OF ENVL REGS, ETC.   
  Deindustrialization is the relative decline in industrial production & employment in core regions as a result of the development of information technology & the export of traditional industries to semi peripheral & peripheral nations  
 
Deindustrialization is a decline in the importance of heavy industry as a source of employment  
 
Deindustrialization is one part of globalization  
  Because of more efficient operations, lower wages, lower environmental regulations, lower labor laws, etc. many nations produce cars, TVs, etc. at lower cost  
  In search of lower wages, & other competitive edges, US corporations have moved assembly operations to third world countries  
  An  example of deindustrialization is seen in that thousands of manufacturing jobs have shifted from the US to northern Mexico  
  In 1988, of the 1,400 manufacturing jobs in Mexico, near the US border, 90% were in American owned corporations  
 
The closing of industrial jobs resulted in 38 mm jobs lost in the US, which were shipped to foreign nations
 
  DEINDUSTRIALIZATION IS ONLY ONE PHASE OF CREATIVE DESTRUCTION IN THE ECONOMIC CYCLE 
 
  A dictum of economics is that the old economic system must be phased out in order to build a new economy
 
  The transformation of one economic base to another necessitates destruction of old economies & ways of life & the development of the new economy
 
  Usually, such a major social change as an economic transformation is not universally welcomed
 
  But economic transformation must happen in the development of any economy
 
  An example of an economic transformation is
 - ag to natural resource extraction
 - natural resource extraction to manufacturing
 - manufacturing to hi tech
 - deindustrialization
 
  Some economies develop strategies to attempt to skip stages of econ development  
  The US economy shifted, or transformed, because international competition caused a shift in the global economic structure
 
  DEINDUSTRIALIZATION IS THE PART OF GLOBALIZATION WHERE CORPS SHIFT PRODUCTION TO 'A MORE FAVORABLE BUSINESS ENV'   
  The global economic structure changed because  
   - the US lost its competitive edge in manufacturing to Japan, South Korea, & Germany
 
   - the US won the competition in hi tech & hi income services
 
   - the US responded to its lost edge in manufacturing w/ downsizing, lean manufacturing, deindustrialization, etc.
 
 
 - of an increase in automation which allowed corporations to create efficient, global enterprises  
  DEINDUSTRIALIZATION IS A BENEFIT TO THE UC WHEN THEY GAIN WAGE & OTHER ADVANTAGES & A DEVASTATING COST TO ALL OTHER CLASSES WHEN THEY LOOSE THEIR LIFE'S CAREER
  Deindustrialization did not adversely impact the upper classes very much because the wealthy were not rooted to manufacturing because they could shift assets to the new economy & to foreign, US owned production  
  Deindustrialization did not adversely impact the lower classes very much because they were not primarily dependent on manufacturing jobs for their income  
  Deindustrialization impacted the middle & working classes more than any other because they were dependent on manufacturing jobs as their primary source of employment & could not easily shift to other occupations
 
  Wkrs could not easily shift to other occupations because there were not enough other, well paying jobs, & because there was not enough training available for displaced workers to upgrade their skills to fit the new, high tech economy  
 
The deindustrialization that began in the 1980s & continues in the 2000s created three shifts in the middle & working classes including the:
 
 
a.  shrinkage of skilled blue & white collar jobs
 
  b.  expansion of low skilled, low pay service jobs in peripheral industries  
  c.  expansion of professional & managerial jobs in the upper range of middle class pay structure  
  DEINDUSTRIALIZATION RESULTED IN THE SHRINKAGE IN THE MIDDLE CLASS, & GROWTH IN THE LOWER & UPPER CLASSES  
  From 1988 to 1993, the US lost 2 mm skilled & semi-skilled jobs in manufacturing, mining & construction, & gained 1.3 mm service jobs paying $215 per week or $10,750 per year
 
  In 1993, 18% of all fully employed workers earned wages below the poverty line, which was a 50% increase since 1979
 
 
In 1994, 72% of new jobs were managerial & professional, 25% of the workforce was mgr / prof  ( 34 of 132 mm ), & 12%   of workforce was manufacturing   ( 17 of 132 mm )
 
  By eliminating higher paying jobs, deindustrialization has resulted in growing inequality & rising poverty since the late 1970s  
  DEINDUSTRIALIZATION HAS DEVASTATED CENTRAL CITIES, ESP THE MFR CITIES IN THE MIDWEST & NORTHEAST, OFTEN CALLED THE "RUST BELT"   
  Blacks & Hispanics in the inner cities are hardest hit because it is difficult for them to move to other areas because of costs & segregation  
  A study by Rosenbaum & Meaden, 1993, demonstrated that when poor Blacks in Chicago were given the chance to move to the suburbs, their employment rose relative to those who stayed in the inner city  
  As a result of deindustrialization & job losses in the inner city, poverty has been concentrated in these areas  
  Deindustrialization has resulted in the degradation of the inner cities  
  DEINDUSTRIALIZATION HAS PARALLELED & FOSTERED THE GROWTH OF THE SERVICE ECON  
  Manufacturing job losses have been offset by growth in jobs in the services & administrative sectors  
  But jobs in the services & administrative sectors have not created enough jobs to replace all of those which were lost to deindustrialization  
  Jobs in the services & administrative sectors require higher education & so were not available to displaced workers from the manufacturing sector  
  Jobs in the services & administrative sectors paid less & so swelled the ranks of the working poor  
 
Deindustrialization had a major, negative impact on unions & organized Labor  
 
Industrial work, the old bastions of unions have been the hardest hit  
  The union's center was in industrial blue collar jobs, which were the jobs hardest hit by deindustrialization  
  The new sectors of the economy, the service economy, female & minority dominated employment sectors had never been unionized  
  Unions have learned new tactics, positions to gain the support of minority, female, & service sector workers  
  Since deindustrialization, the growth in the Labor Movement has come from the public sector & the service sector
 
  The US has lowest unionization rate of any modern, industrialized nation  

 
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 Outline on  Low Wages & the Minimum Wage
External
Links
  -  Supplement:  Articles on the Living Wage Debate 
Link
  IN THE US, BUT NOT MOST OTHER CORE NATIONS, A FULL TIME WKR MAY NOT BE ABOVE THE POVERTY LINE  
  In 2000, 12% of poor people worked full time 
 
  The number of of the working poor more than doubled since 1978, because the minimum wage rarely increases at the rate of inflation 
 
  In 2001, the minimum wage was $5.15 / hr. or $10,712 / yr. 
 
  In 2003, the minimum wage is $5.50 / hr. or $11,440 / yr. 
 
  The minimum wage will does not provide a living above the poverty line for a couple & is more than $7,000 below the poverty line for a family of four 
 
  Because of low pay, many military families live below the poverty line & are eligible for food stamps & welfare 
 
  The minimum wage & military pay are political footballs & therefore they have not been raised regularly to adjust for inflation 
 
  In 1996, the minimum wage had only 2/3s of the purchasing power that it did in 1968   
  MIN WAGE PROPONENTS HOLD THAT IT COULD BE USED TO ELIMINATE POVERTY; OPPONENTS HOLD THAT IT IS UNFAIR TO BUSINESS & IT SLOWS JOB GROWTH  
  Opponents of the minimum wage believe that it costs small & corporate business too much money, resulting in fewer low wage jobs, & thus ultimately hurting the people it is supposed to help 
 
  Proponents of the minimum wage believe it helps the poor, should be higher, & has little effect on the number of low wage jobs because these jobs are rarely mechanized, businesses cannot operate w/ less of these jobs, & the costs can generally be passed on the the customer 
 
  Because of deindustrialization & other changes in the economic structure, low wage jobs were one of the fastest growing sectors of the econ in the 1980s & 90s, & there was little growth in middle class jobs 
 
 
Deindustrialization, the growth of low wage jobs, & slow growth in middle class jobs has resulted in falling incomes for the lower & middle classes, & a lower median income 
 
 
In 2005, real wages for US wkrs fell 1/2 %, continuing the trend of falling wages that has characterized the 1st world wkforce since the late 1970s (except for a brief 3 yr period during the end of the Clinton Admin when wages rose) 
 
  WELFARE REFORM HAS MADE IT MORE DIFFICULT FOR THE WKING POOR TO RECEIVE ANY KIND OF AID  
 
A major goal of the Welfare to Work Program is to move people off of welfare to work, & to provide a living for them 
 
 
The Welfare to Work Program has moved many people off of welfare, but has not provided a living for them in that they earn wages at or below the min wage 
 
  Welfare to Work Programs have moved many people from govt subsidies to minimum wage jobs, w/ no health benefits or chances for advancement   
  Jobs, w/ no health benefits or chances for advancement cannot sustain an individual or family in the long term because one cannot save for or weather any of life's emergencies or make any of life's major purchases such as an auto & home   
  Jobs, w/ no health benefits or chances for advancement are called dead end jobs   
  The living wage movement is attempting to eliminate dead end jobs by raising minimum wage to a point where one has health benefits & the possibility of saving   
  The living wage movement is not operating at the national level trying to get Congress to increase the minimum wage   
  The living wage movement is operating at the state, local, & the individual enterprise level & thus small groups of dedicated individuals are having an impact   

 
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 Outline on  Government Economic Policy
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  Since the development of Keynesian economics, & "pump priming," the govt has the ability to significantly determine economic growth, or lack there-of  
  Govt economic policy has is a major factor in determining the the growth of the economy by setting interest rates, the money supply, which are called monetary policy, & govt spending & borrowing, which is called fiscal policy
 
  Interest rates affect the amount of money that investors are willing to borrow to create more jobs
 
  The money supply affects the amount of money that is available for investors to borrow
 
  Govt policy which determines the interest rates & money supply is called monetary policy  
  Govt spending creates employment which pays people wages, thus directly lowering the unemployment rate & indirectly growing the economy by putting money in people's hands to spend in other businesses
 
  Govt policy which determines govt. spending & borrowing is call fiscal policy  
  The govt has generally chosen to fight inflation rather than unemployment because the upper classes are more impacted by inflation than unemployment, though there is always significant political pressure to lower unemployment
 
  Beginning in the late 1970s, govt welfare programs have been systematically cut, w/ the biggest cuts coming during the Reagan Administration, 1980-88, & welfare reform during the Clinton Administration, 1992-2000, resulting in people moving off of welfare to sub poverty level jobs
 
  Military adventurism, budget deficits, & an ideology that blames the poor for the nation's problems have been the primary motivators for the reduction in aid to the poor
 
  Given govt cut backs, benefits in many programs were not adjusted to inflation, the poor are no longer able to supplement their income w/ food stamps or other govt aid, people were moved off of welfare to sub poverty level jobs, & health care is less available, & day care is less available
 
  Because of govt economic policy, the US, compared to other modern, industrialized nations, has not only more people living in poverty, but also has less support for the poor resulting in more hunger & sickness 
 

 
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 Outline on the  Structural Causes of Poverty
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7. The Structural View holds that 
- political economic forces directly influence poverty
- the interaction of poverty & political characteristics is overshadowed by the political economy
- poverty can only be understood, explained, & eliminated by reference to political & economic characteristics of society
- a challenge to the status quo & demands of change to the system are a threats to other classes
 
 
Weber holds that the modern occupational structure is characterized by conflict & competition in the marketplace
 
  The structure of the present system 
- is created to make winners & losers
- has a education system w/ a grading scale where all people can earn an A
- has an employment system where all people cannot earn a fair wage
- has an employment system where all people cannot be employed
 
  As compared to the US, Europe supports the poor, while the US lets them fail  
 
There have been structural changes in the US economic system that have affected structural mobility
 
 
In the early 1900's 20 mm moved from farm to LC, WC & MC:  there were not enough WC & MC jobs
 
 
The labor movement created the blue collar aristocrats, i.e. those who had high paying blue collar jobs
 
 
In the 1980s, the blue collar aristocrat jobs disappeared
 
  The 1994 Census showed that 18 % of full time workers earn below the poverty line, a 50 % increase since 1979  
  The elimination of well paying blue collar jobs helped create the COP because there are few blue collar workers as role models and thus workers have no connections w/ those who do get ahead  
 
In the third quarter of 2003, during the "jobless recovery" the US experiences a record growth rate of 7.2% but unemployment only fell from 6.2 to 6.1%, but analysts are hopeful for better job creation in the future
 
  The US & the industrialized world is characterized by business cycles of boom, recession, bust, growth  
  Japan typically has smaller, less extreme business cycle than the US in that in 1994 Japan had a 3 % unemployment rate and considered this level of unemployment to be a drastic failure  
  In the US in 1997, the unemployment rate was 5+% in the midst of a boom and this was considered to be a good economic climate  
 
See the history of Social Mobility   
 
Unemployment rates are deliberately regulated by the govt by TWO major processes, including monetary policy & fiscal policy
 
  See Also:  Unemployment  
  The US has a dual economy w/ pockets of poverty on one side & economic prosperity on the other  
 
Pockets of poverty are frequently located in urban centers, areas w/ a high concentration of cyclic industries such as autos, steel, clothing
 
  Pockets of poverty are also located in rural areas such as mining in Appalachia, forestry in the west, farming in the midwest  
  The existence of poverty is woven into the structure of the industrial economic system   
  - because industry may find it cheaper to move to new location   
  - govt policies regulate demand & unemployment, functioning to keep demand & unemployment high  
  - in that industry may replace workers w/ technology  
  Project:  Is this always the best societal solution?  Should we allow status quo?  Limit it?  Mitigate it?  
 
The development of the  Appalachian mtn coal region provides SIX examples of how govt policy has created wealth & poverty
 
 
The development of the Appalachian mtn coal region's govt policy has created wealth & poverty in that:  
  1.  the govt has allowed coal mining to occur w/o regard for the env  
  There are FOUR major effects of coal mining on the environment: 
a. water degradation
b. surface land destruction, which harms farming & forestry
c. subsurface instability makes construction expensive
d. degradation of envl beauty
 
  2.  mechanization has expanded reducing the demand for labor  
  3.  absentee owners removed profits from area  
  4.  no tax base was ever built:  historically a pittance for the coal severance tax; no property tax  
  5.  low corporate taxes allow large corp profits w/ little econ benefit to the region  
  6.  corporations often reorganize under new names to avoid environmental costs especially around reclamation & control of pollution, & medical & retirement benefits owed to the workers  
 
Poverty is related to the western industrial property structures for THREE reasons
 
  1.  The lower class has little or no ownership of homes, which is a major store of value for all other classes  
  2.  The lower class has little or no ownership of land because while in the past, LC moved West to claim land from Native Americans, there was a chance that the poor could own land, today, there is little chance of that  
  The situation for Native Americans has improved as they come to exercise control over their property  
  3.  The lower class has little or no ownership of businesses through stock  
 
Poverty is related to the western industrial authority structures for the reason that the lower class has almost no political power
 
  Blue collar aristocrats have no political power because  
  - the blue collar aristocrats are the most satisfied worker in the lower, working & middle classes  
  - they have nearly no authority at work  
  - they gained political power often gained outside of normal channels through the Labor Movement  
  - they gained higher status & so became satisfied & complacent  
 
For non blue collar aristocrats, concessions usually come in the form of welfare benefits
 
  Welfare actually helps preserve the status quo by keeping the lower class from violence, activism, etc.  
  The dilemma for any leader or social movement is that strife, conflict & abject suffering will mobilize people while concessions & tolerable suffering will pacify people  
  Project:  What should we do to organize/represent the LC?  strife or concessions?  

 
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  Outline on  Welfare
External
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  -  Project:Video:  Poverty Programs
Link
  -  Video:  Poverty Programs           2:10 min
Link
 
Welfare, aka public assistance, includes governmental provisions to care for the disadvantaged citizens of a country with benefits such as money, medical care, food, housing, & other necessities
 
 
People who receive welfare include children, the aged, the blind, the disabled, & others who cannot adequately provide for themselves & their families, i.e., the Poor
 
 
Charity is assistance provided by non governmental organizations ( NGO's ) such as churches, the Salvation Army, & other non profit & for profit charitable organizations
 
 
Public assistance in the US comes primarily from federal & state governments but it is sometimes administered by local govt. 
 
 
Technically public assistance does not include social security because these are funded mainly by special payroll taxes on workers & employers
 
 
Social security in the US includes old age survivors, disability & health insurance, unemployment insurance, and workers compensation
 
 
Unlike welfare, social insurance programs provide benefits to people whether they are poor or not
 
 
The welfare state does more for the middle class, the corp class & the upper class than for the lower class
 
 
There are FIVE basic types of welfare in the US including Medicaid, TANF, SSI, food stamps, & other misc. programs
 
  The federal & state govts of the US serve the needy through about 60 programs  
 
1Medicaid provides free medical care to the needy
 
  Eligibility for Medicaid varies from state to state  
  In some states you need not be below the poverty line, but only need to be unable to pay for medical costs in order to be eligible for Medicaid  
  Medicaid provides for doctor visits, hospital treatment, nursing home care, drugs, eye glasses, hearing aids  
  Nearly half of all Medicaid expenses are for the aged & goes primarily to nursing homes  
  The vast majority of Medicaid costs are covered by the fed govt; the rest is covered by the states  
  Patients, doctors & insurance companies complain that Medicaid does not cover the full cost of medical care  
  2.  Temporary Assistance to Needy Families (TANF) was called Aid to Families w/ Dependent Children (AFDC) until the 1996 Welfare reform  
 
Aid to Families w/ Dependent Children (AFDC) provides cash benefits to dependent children & the adults caring for them
 
  Most families on AFDC have only one parent in the home & 80 % of these are headed by a woman  
  AFDC is for only the deserving poor & is given according to a means test  
  Other programs similar the AFDC include:  ADC, AD, AB, AFDC-UP unemployed parent):  father can be present & family can still get welfare  
 
A means test is the government's method of determining ones income
 
  Means testing usually involves all cash income & benefits from all sources, less expenses  
  Means testing usually also takes into accounts assets:  e.g. generally one family may own one car  
 
3Supplemental Security Income for the aged, blind, & disabled ( SSI ) provides financial aid to the needy over 64 yrs. of age or are blind or disabled
 
  Note that regular Social Security provides retirement insurance to ALL people over 64 yrs. old  
  SSI is administered by the Social Security Administration but is not part of Social Security that the non poor receive  
 
4.  The Food Stamp Program ( administered by the USDA ) helps the poor buy more & better food.
 
  If eligible, a family is issued food stamps which can only be used to buy basic necessities ( no alcohol, tobacco, etc. )  
 
5.  Other small welfare programs include public housing, which is administered by HUD; Energy Assistance; Women, Infants & Children Assistance ( WICA ); Earned Income Tax Credit ( EITC ), etc. 
 
 
General Assistance is state & local only type of welfare for the poor who can't get any federal assistance
 
  Most recipients of welfare are children and only 1 % able bodied males  
  A person must be very poor to get welfare  
  Welfare only brings a person up to 40% of the Poverty Level  
  Chart 1:  The Allocation of Federal Entitlements
 Link
  An analysis of the Allocation of Federal Entitlements shows that most entitlements do not go to the poor  ( 13 % )
 
 
The socio historical development of welfare shows that all welfare began as charity:  private persons giving money, goods & services to the needy
One of the earliest forms was giving to widows w/ children
 
  The Cross National Perspective shows that of 63 top industrialization nations:
- The US is the only industrialized nation who doesn't have a guaranteed income program
- The US is only industrialized nation w/o health care for all
 
  Table 9 - 7  Percent of Central Government Expenditures  Spent on Housing, Social Security & Welfare:  1987 - 1989
 Link
  An analysis of the Percent of Central Government Expenditures Spent on Housing, Social Security & Welfare shows that
- the US ranks last in % spent on housing, social security, & welfare 
- US taxes are also the lowest
- the US ranks in the middle in the ratio of need & the % spent
 
  Table 9 - 8   Percent of Population Covered by Public Health Insurance, 1990
 Link
  The Table on the Percent of Population Covered by Public Health Insurance in 1990 shows that the US has the lowest public insurance rate, & thus Medicare, Medicaid, & other public medical programs are limited in scope  
  In Canada welfare is provided by the Canada Assistance Plan
 
  The Canadian plan provides financial aid to all of Canada's needy  
  In Canada, the provincial & national govts each pay half of the cost & the provincial govts administer the programs  
  Canada has govt supervised health insurance for all that is considered very good,  but it is more difficult to get radical treatments such as transplants  
  In Europe most nation provide mainly through national programs that benefit all their citizens  
  In many countries the govt provides free medical & hospital care, tamely allowances, & retirement pensions  
  Western European nations such as the UK, Norway & Sweden have such complete safety nets that they are said to be Welfare States  
  Canada has govt supervised health insurance for all that is considered very good,  but it is more difficult to get radical treatments such as transplants  

 
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 Outline on the  Welfare to Work Program:  The 1996 Welfare Reform
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  WELFARE REFORM ESTBED LIMITS TO THE AMT OF WELFARE ONE MAY RECEIVE & GAVE THE STATES GREATER LATITUDE IN CUSTOMIZING THEIR WELFARE SYSTEMS   
 
In 1992 & 1996, the Clinton Administration & a Republican Congress passed welfare reform, called the "Welfare to Work Program"
 
  Temporary Assistance to Needy Families (TANF) which was called Aid to Families w/ Dependent Children ( AFDC ) until the 1996 welfare reform continues to be the cornerstone of the US welfare system  
  Under the 1996 welfare reform:   
  - the Feds get out of welfare administration & hand over money to the states in one block grant  
  - the States get flexibility to design their own welfare programs w/o Fed involvement  
  - there is a five year time limits on how long someone can get welfare, & states may lower, but not raise, that limit  
  - people who receive welfare must accept employment  
  - education could be substituted for employment for only one year  
  - vocational education could be substituted for employment  
  - unemployed adults have a time limit on how long they can receive food stamps  
  - there is increased federal funding for day care  
  - there is increased access to Medicaid for the poor  
 
WELFARE REFORM WAS NEEDED TO ADDRESS THE 'CULTURE OF POVERTY' PROBLEM BY GETTING PEOPLE OFF WELFARE INSTEAD OF MAINTAINING THEM ON IT 
 
 
Welfare reform was instituted because the structure of the old welfare program actually causes people to stay poor
 
 
Murray, 1984, 1992, wrote that the old welfare system encouraged teens to have babies, people to be dependent on aid, have illegitimate children, be single parents, etc. rather than finding jobs & supporting themselves
 
 
Because of the socially conservative views of Murray, the frustration w/ the failures of the old welfare system, the ideology of blame the poor, the ideology of Horatio Alger, the Republicans & Democrats attempted to "end welfare as we know it" (a Clinton slogan)
 
 
EVALUATION OF THE 1996 WELFARE REFORM SHOWS MIXED RESULTS 
 
 
This program has drastically reduced the number of people on welfare
 
 
In 2001, welfare to work is still considered to be a success, but there has been the worry all along that this program would not provide for the needy if the US experienced a recession
 
 
In 2003, after over two years of a mild recession, the poor are being served by thread bare charity programs, & are not that much worse off than before the 1996 welfare reform
 
  THE MURRAY THESIS HOLDS THAT WELFARE CREATES OR ATTRACTS MORE PEOPLE TO 'THE FREE RIDE'   
 
William Julius Wilson examined the correlation btwn the amount of welfare people receive & the number of people on welfare
 
 
If the Murray Thesis is correct, the amount of welfare & the number of people on welfare should be positively correlated
 
 
If the Murray Thesis is incorrect, the amount of welfare & the number of people on welfare should be negatively correlated
 
  MOST SOCIAL SCIENTISTS HAVE DISPROVED THE MURRAY THESIS & FOUND THAT WELFARE USE GOES UP WHEN THE ECON GOES DOWN   
 
Many social scientists, e.g. Wilson, Ellwood & Bane, Rank, Moffit, Jencks found little support for the Murray Thesis, indicating that the number of people on welfare depends little on how much welfare is paying & much on how the econ is doing
 
 
Wilson found that when welfare benefits are high, the econ is doing well & the govt has more discretionary income to spend on welfare, there are less people on welfare
 
 
Wilson found that when welfare benefits are low, the economy is hurting & the govt has little discretionary income to spend on welfare, there are more people on welfare
 
 
Jencks found that the availability & levels of welfare benefits had little effect on the proportion of single mothers who were employed  
 
Moffit found no correlation btwn single female headed families, illegitimate children, & welfare  
  There have been large declines in the number of people receiving welfare, but not all of these people have jobs  
  70% of those who had left welfare were still off welfare in 1997  
  42% of those who had left welfare were employed w/ a median pay of $6.61 & half of those had no private or govt health insurance  
  Overall, the earnings of former welfare recipients were only at the poverty level  
  The most common reason for unemployment for people not on welfare was disability, followed by care taking, not able to find a job, & lack of transportation  
  One third of former welfare recipients are not eating well, & there is a 17% increase in emergency food requests in 2000, & one third of them were working  
  Welfare assistance is less available to Blacks  

 
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  Outline on Criticisms of the Welfare System
External
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blank
There are FIVE Criticisms of the Welfare System  
  1.  Welfare programs do not provide enough benefits to eliminate poverty  
  Spending on welfare would have to substantially increase to eliminate poverty  
  Band aid welfare is the name coined to describe a welfare system that only provides subsistence level existence, or less  
  Full spectrum welfare is the name coined to describe a welfare system that provides all of the services, training, education, medical care, etc. that is necessary to help someone become a productive member of society  
  2.  Welfare costs are too high  
  3.  Providing a steady income to the needy encourages idleness  
  Actually, most welfare benefits go to elderly, bind & disabled people, & mothers w/ dependent children  
  Welfare does discourage some from seeking a job, especially if they get less from the job than from welfare  
  Welfare also discourages work by decreasing benefits incrementally as any amount of earnings increase  
  4.  Welfare does not prepare people for work or for middle class society  
  5.  Welfare pacifies the people.  It is conflict management at a societal level  
  In analyzing the politicization of welfare, some analysts, Gilder, Murray, et al, maintain that it is dysfunctional & cannot be functional because human nature is as the Social Darwinists posited, though contemporary analysts would not use that term  
  In analyzing the politicization of welfare, some analysts maintain that it is dysfunctional because the opponents of welfare have created a band aid welfare System & have blocked the implementation of a full spectrum welfare system  
  The present band aid system of welfare has failed because keeping people at a subsistence level does create a culture of poverty  
  Proponents of the full spectrum welfare maintain that opponents oppose a functional welfare system both because of their beliefs in Social Darwinism, & because of their desire to maintain wealth & power by preventing the lower classes from becoming empowered  

 
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Outline on  Welfare as Conflict Management
External
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  The fact that welfare can be viewed as societal level conflict management is a major criticism of the welfare system  
  People in society generally assume that:  
  - welfare, charity, etc. is motivated by innate human drive to help others, i.e. altruism  
  - when society is doing well, more resources are given to welfare, charity, etc.  
  The two war strategy is the concept that the Elites employ two tactics to manage societal disruption  
  The tactics of the two war strategy include:   
  - the use of force, including arrest, imprisonment, death, etc., to suppress those vying for change  
  - convincing the lower class that rebellion is counterproductive; that the status quo is their best option; that things will get better; that the offer of the carrot of welfare, benefits, & reform can be replaced by the stick of imprisonment, etc.  
  -  Project:  Are these true?  
  Piven and Cloward write that there are TWO functions of welfare  
  1.  Piven and Cloward believe that during periods of social stability, the welfare system enforces work norms & maintains a low wage labor force  
  The MC, WC, LC fear poverty as a very real threat  
  It is quite possible for even MC families to fall into poverty if the economy tanks, or if the major breadwinner becomes debilitated  
  In the US, the only social institution that prevents a fall into poverty is family wealth, while many other industrialized nations have a sufficient social safety net that prevents the fall to poverty  
  And members of the MC often cannot bequeath enough wealth to ensure MC status for their children  
  US attitudes toward the poor reinforce the belief in our system in that many believe the poor are poor because of their own behavior; i.e., the poor are inferior  
  2.  Piven and Cloward believe that during periods of social disruption, the welfare system's major function is more to restore social order than to provide assistance  
  The poor can be managed, watched over, pacified by welfare, by cutting or expanding benefits  
  The mgt of the poor via welfare may appear as a conspiracy theory, but it is largely the normal reactions of society:  
  When times are hard, we see & feel the need to give more  
  When times are good, we have more difficulty understanding why people can't get ahead & therefore we attack the welfare system as the cause of these problems  

 
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 Outline on  Functionalism on Poverty
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  Functionalism notes that there is poverty & stratification in every society, indicating that poverty & stratification are necessary for society to function
 
  Poverty & stratification become dysfunctional when they are too great
 
  Economic inequality is one of the most important causes of conflict & disorder in society
 
  Those at the very bottom of the economic hierarchy often become hopeless & alienated & "drop out" 
 
  Merton notes that if society provides goals, such as the typical American dream, but does not provide legitimate, institutionalized means for people to reach those goals, then anomie results  
  Anomie resulting from the dysfunctional relationship btwn goals & means results in people choosing the path of the innovation (which includes criminal behavior), ritualism, retreatism, or rebellion  
  See Also:  Merton's revision of anomie  
  Thus poverty, stratification, & inequality may be functional up to a certain point, but most societies have far more than is necessary to motivate people
 
  For functionalists, there is evidence that too much poverty, stratification, & inequality can be dysfunctional even for the upper classes
 
  One reason that the upper classes pursue every greater amounts of wealth is that under the present system, just as anyone can succeed, anyone can fail
 
  The upper classes are motivated not only by positive goals of wealth, such as status, but also by a fear that they need more to attain economic security
 
  Davis & Moore hold that poverty, stratification, & inequality exist because they meet society's needs for productivity by motivating people
 
  Davis & Moore on Poverty, Strat, & Inequality  
  Critique of Davis & Moore on Poverty, Strat, & Inequality  

 
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Outline on an  Intro to Davis & Moore on Stratification
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  STRATIFICATION IS THE STRUCTURE OF SOCIAL POSITIONS 
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  Stratification is the structured process by which social groups are assigned a social position, resulting in a hierarchy & a pattern whereby scarce "resources" are distributed unequally to these social positions
 
  FOR DAVIS & MOORE, SOCIETY HAS ALWAYS HAD STRAT & MUST HAVE STRAT TO FUNCTION   
  Davis & Moore hold that stratification is universal  
  STRAT MOTIVATES PEOPLE BY REWARDING THEM FOR DOING DIFFICULT JOBS   
 
Davis & Moore hold that poverty, stratification, & inequality exist because they meet society's needs for productivity by motivating people
 
  For Davis & Moore, the jobs that are the most critical to society, e.g. corporate mgrs., doctors., lawyers, etc., require longer & more difficult training than other jobs  
  The jobs that are the most critical to society also carry greater responsibility, are stressful, have long hours, & should have high pay  
  In order to induce highly capable people to take these critical jobs, society must offer them greater rewards in exchange for the difficulty in getting the job & the stress incurred on the job  
  W/o the motivation of higher pay, people would be unlikely to sacrifice current income in order to get the years of arduous training that critical jobs require  
  W/o higher pay, everyone would choose jobs that require no training, have little stress, & run only 8 to 5  

 
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 Outline on the  Critiques of Davis & Moore
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-  Project:  What Influences Career Rewards?
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  CONTRARY TO DAVIS & MOORE, MANY LOW PAYING JOBS ARE CRITICAL FOR THE FUNCTIONING OF SOCIETY   
 
Melvin Tumin, 1953, 1970, holds that 
 
 
- the jobs that Davis & Moore believed were so critical may not be as important as common low level jobs
 
 
Historical demographers have demonstrated that garbage collectors & sewage maintenance workers are more critical for public health that are doctors
 
 
Critics of Davis & Moore note that workers are just as necessary as managers
 
  It is difficult to rate jobs on pleasantness & importance of jobs & Davis & Moore make many assumptions in this regard  
  According to Davis & Moore, occupations that are unpleasant should be important  
  But most people would agree that the occupation of a doctor or lawyer is pleasant & important  
  But most people would agree that the occupation of a janitor or garbage collector is unpleasant & unimportant  
  THE LARGEST DETERMINANT OF STRAT IS INHERITANCE, WHICH DOES NOT MOTIVATE PEOPLE   
 
Critics of Davis & Moore note that it is difficult to see how inherited wealth could motivate people
 
 
Wealth is more unequally distributed than income & a large share of wealth is inherited rather than earned
 
  In 1989, about half of the wealthiest 400 US people inherited, or invested inherited wealth to become wealthy 
 
  EDUCATION IS THE GREAT EQUALIZER, I.E. IT ELIMINATES HI STRAT, BUT THE ED OF A CLASS IS DETERMINED NOT BY MOTIVATION BUT BY PARENTAL WEALTH   
  Parental income impacts a person's ability to obtain an education 
 
  If Davis & Moore were correct, poverty, stratification, & inequality would be the main factors determining one's ability to get an education, & not parental wealth
 
  Even middle class wealth is important for the parent's ability to give an education to their children
 
  - the training required to get critical, better paying jobs is far from unpleasant, in that many people enjoy education
 
  Contrary to what Davis & Moore hold, the process of training & education gives one prestige
 
  - the critical, better paying jobs have considerable non material rewards such as autonomy, a sense of accomplishment, prestige, etc.
 
  THE FACT THAT ED & STRAT ARE NOT PERFECTLY CORRELATED DEMONSTRATES THAT OTHER FACTORS, SUCH AS INHERITANCE, IMPACT STRAT LEVELS   
  Contrary to what Davis & Moore hold, many jobs require high levels of training but pay relatively little
 
  Critics of Davis & Moore note that social workers, professors, teachers require more training but pay less than many jobs available w/ a high school education
 
 
EXTERNAL RESTRAINTS SHAPE STRAT LEVELS MORE THAN MOTIVATION
 
 
External restraints on workers & the workforce are not considered by Davis & Moore
 
 
Critics of Davis & Moore on stratification note that workers in low positions are blocked from gaining high positions because
 
 
a.  gaining skills takes money, power, or influence
 
  Davis & Moore neglect restraints on acquiring skills
 
 
b.  access to the best education via prepatory schools ivy league colleges & many professions is influenced by family ties
 
  Davis & Moore admitted only a weak "family" influence in gaining an education, a job, or a career
 
 
c.  not everyone is capable of performing some tasks which means that society must deal w/ or accommodate all people, those w/ extraordinary skills as well as those w/ normal skills, those w/ below average skills, & those who perhaps do not have even enough skills to take care of themselves
 
  Davis & Moore ignored the stratification of abilities in the population   
  ORGANIZATIONAL / INTERNAL RESTRAINTS SHAPE STRAT LEVELS MORE THAN MOTIVATION  
 
Internal restraints on job markets, such as those restraints created by people in high positions such as lawyers & Drs., have vested interest in status quo
 
 
The importance of various jobs is NOT totally determined by the mkt
 
  People in power determine the worth of jobs  
  The AMA restricts the numbers of Drs.  
 
Unions find it difficult or impossible to restrict the number of low status wkrs  
  INTL STUDIES SHOW THAT INEQUALITY / STRAT IS HIGHER THAN NEEDED TO MOTIVATE PEOPLE TO SACRIFICE   
  The level of inequality is higher than needed to induce sacrifice   
  The US has the highest inequality of industrialized countries  
  Japan has the lowest inequality of the major industrialized nations  
  The level of inequality btwn the US & Japan is very different & yet both are "successful countries"  
  Davis & Moore assume that the present system must continue   

 
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 Outline on  Conflict Theory on Poverty, Strat, & Inequality
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  -  Project:  Criticisms of the Welfare System; Conflict Theory on Welfare; Welfare Fixes 
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  CONFLICT THEORY HOLDS THAT IN MODERN SOCIETY, POVERTY IS AVOIDABLE BUT IS MAINTAINED IN ORDER TO CURTAIL ECON POWER & ENCOURAGE SUBMISSIVENESS OF THE MID & LOWER CLASSES   
  While poverty, stratification, & inequality exist in all societies, the more economically developed & productive societies have less inequality than others, not more as functionalists, including Davis & Moore, hold
 
  Conflict theorists believe that poverty, stratification, & inequality exists because the upper classes benefit from it & have the power to make the social system work to protect their interests
 
  Poverty, stratification, & inequality cause class conflict
 
  Conflict theorists believe that it is in the interest of the wealthy to keep things as they are, i.e. preserve the status quo, whereas those w/o wealth have an interest in social change
 
  THE MID & LOWER CLASSES HAVE NOT OVERTHROWN THE SYSTEM BECAUSE THE IT HAS NOT COLLAPSED, IDEOLOGY, THE MID & LOWER CLASSES HAVE BENEFITED, & GOVT REG HAS REDUCED THE WEAKNESSES OF THE SYSTEM   
  Marx believed class conflict would lead to overthrow of advanced capitalist society as the lower classes realized its own interest & seized power
 
  Overthrow of advanced capitalist society has not happened because
 
  - Marx believed that overthrow would & could only happen in advanced capitalist nations, & capitalism is not at that stage yet
 
  - the control of ideology by the upper classes creates false consciousness in the lower classes, i.e., the lower classes do not realize their own interests & so therefore support the upper class & the status quo
 
  - the rise of the middle class has lessened the enmiseration of early, laissez faire capitalism
 
  - the rise of govt regulation of the economy has lessened the enmiseration of early, laissez faire capitalism & has curbed the excesses of capitalism including bank failures & large economic swings
 

 
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 Outline on the  Empirical Evidence on the Functionality of Stratification
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  The empirical evidence on the functionality of stratification indicates that some inequality & stratification are functional as a motivation to induce people to take the critical, complicated occupations, & to take uncritical, simple occupations
 
  The empirical evidence on the functionality of stratification indicates that too much inequality & stratification are dysfunctional in that they induce the rich to strive for ever greater wealth at the expense of others & in that the poor suffer, become alienated, & drop out or turn against the system
 
  The empirical evidence on the functionality of stratification indicates that inequality & stratification is perpetuated by the concentration of wealth in the upper classes & the issue becomes whether there is too much stratification for society to function optimally
 
  THE EMPIRICAL EVIDENCE:
 
  Abrahamson hypothesized that if stratification & inequality were operating correctly then military jobs should pay more in times of war & less in times of peace
 
  Abrahamson found no support for the functionality of stratification & inequality in that military pay generally increases during peace-time & decreases during war-time because of budget constraints  
  The level of inequality is highest in the poorest countries
 
  An analysis of Table: Inequality & Productivity in Selected Industrial Countries in 2000, shows that there is no relationship btwn inequality & productivity demonstrating the dysfunctionality of high levels of stratification & inequality
 
  The level of inequality in industrialized countries is not related to efficiency & job allocation  
 
Drs.' & other professionals' pay & numbers in the occupation are related to the control of the profession by professional associations not by unpleasantness
 
 
The worth of jobs appears to be most closely related to
 
  - the fickleness of society  
  - how much $ it can make for a corporations ( pet rocks, etc.)  
 
The level of freely available education is directly related to social equality in that the upper classes have a strong ed system while the mid & lower classes have a weak ed system
 
 
In modern, industrialized nations, education, govt econ policies, & the structure of the econ sector are more strongly related to productivity than are inequality & strat
 

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