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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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The concept of the poverty line was developed in 1965 by Mollie Orshansky, who was a bureaucrat for the Dept. of Agriculture |
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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 | |||||
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Since 1969 the USDA has adjusted the poverty line for inflation in a process is called indexing |
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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. |
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Yet, the poverty line is still considered fairly subjective or inaccurate |
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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 |
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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 | |||||
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In the social sciences, Social Darwinism was advanced by |
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- the American sociologist William Graham Sumner ( d. 1910 ) | ||||
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- the British sociologist Herbert Spencer ( d. 1903 ) | ||||
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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 |
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We should have no govt programs to assist the poor because they will degrade the gene poor by breeding like insects |
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The rich admired this point of view of Sumner, Spencer & other social Darwinists & Andrew Carnegie supported Sumner's work |
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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 |
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Contemporary writers such as George Gilder & Charles Murray wrote that the poor had a number of genetic inferiorities |
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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 | |||||
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Wealth and Poverty ( 1981) Gilder
The Bell Curve (1994) Richard Hernstein |
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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 | |||||
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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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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 |
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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 |
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Oscar Lewis, a social anthropologist, is considered to be the father of the culture of poverty thesis |
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Oscar Lewis' most famous works include: Five Families (1959), The Children of Sanchez (1961), La Vida (1966) |
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Lewis has FIVE major points to his culture of poverty theory |
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a. Because of the conditions of poverty, the poor are presented w/ unique problems in living ( compared to the nonpoor ) |
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b. In order to cope w/ these problems, the poor follow aunique lifestyle |
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c. Through collective interaction & in relative isolation from the nonpoor this poor lifestyle becomes a common lifestyle which produces common values, attitudes, & behavior |
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This lifestyle of the poor & set of knowledge, beliefs, values & norms is called the culture of poverty, which, more accurately, is a subculture |
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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 |
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Thus one can embrace the culture of poverty, the knowledge, beliefs, values & norms of the Poor w/o being poor |
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e. The culture of poverty becomes so powerful that even if opportunities arise, the poor will not be able to take advantage of them |
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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 |
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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 |
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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 |
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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.] |
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Project: what are some COP
values, actions that operate on the Group Level & Societal Level:
Group level: Societal level: |
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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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Group level: gang behavior, expectations of peer groups, Societal level: counterculture, expectations of teachers, etc., social services expectations |
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- Supplement: An Analysis of Out Of Wedlock Births in the United States; Brooking Institute, August, 1996 |
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- Supplement: Understanding the Rise in Illegitimacy |
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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 | |||||
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There were approximately 1.5 million births to unmarried women in the US during 2004 |
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In the mid 2000s, the birth rate for unmarried women is 46.1 births per 1,000 for unmarried women aged 15 - 44 yrs |
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36 % of all births take place out of wedlock |
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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 | |||||
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It is well established that single parent, female headed families have a high risk of poverty |
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Feminists have labeled the trend of single parent, female headed families having a high risk of poverty "the feminization of poverty" |
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As the % of single parent, female headed families grew in the 1970s & 80s, so did the poverty rate |
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The rate of out of wedlock births is higher among people who are already poor or grew up in poverty |
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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 |
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Poverty is as much a cause as a consequence of out of wedlock births |
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Poor people have less access to birth control |
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Poor women have a small pool of employed, marriageable men |
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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 |
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Poverty harms self image & giving birth is one way a woman can improve her status & self image |
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Poor people have less control over their lives & giving birth increases the control a woman has, at least in that one sphere of motherhood |
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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 |
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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 | |||||
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Deindustrialization is a decline in the importance of heavy industry as a source of employment | ||||
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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 | |||||
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The closing of industrial jobs resulted in 38 mm jobs lost in the US, which were shipped to foreign nations |
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DEINDUSTRIALIZATION IS ONLY ONE PHASE OF CREATIVE DESTRUCTION IN THE ECONOMIC CYCLE |
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A dictum of economics is that the old economic system must be phased out in order to build a new economy |
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The transformation of one economic base to another necessitates destruction of old economies & ways of life & the development of the new economy |
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Usually, such a major social change as an economic transformation is not universally welcomed |
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But economic transformation must happen in the development of any economy |
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An example of an economic transformation is
- ag to natural resource extraction - natural resource extraction to manufacturing - manufacturing to hi tech - deindustrialization |
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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 |
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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 |
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- the US won the competition in hi tech & hi income services |
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- the US responded to its lost edge in manufacturing w/ downsizing, lean manufacturing, deindustrialization, etc. |
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- 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 |
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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 | |||||
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The deindustrialization that began in the 1980s & continues in the 2000s created three shifts in the middle & working classes including the: |
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a. shrinkage of skilled blue & white collar jobs |
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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 |
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In 1993, 18% of all fully employed workers earned wages below the poverty line, which was a 50% increase since 1979 |
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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 ) |
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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 | |||||
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Deindustrialization had a major, negative impact on unions & organized Labor | ||||
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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 |
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The US has lowest unionization rate of any modern, industrialized nation |
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- Supplement: Articles on the Living Wage Debate |
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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 |
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The number of of the working poor more than doubled since 1978, because the minimum wage rarely increases at the rate of inflation |
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In 2001, the minimum wage was $5.15 / hr. or $10,712 / yr. |
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In 2003, the minimum wage is $5.50 / hr. or $11,440 / yr. |
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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 |
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Because of low pay, many military families live below the poverty line & are eligible for food stamps & welfare |
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The minimum wage & military pay are political footballs & therefore they have not been raised regularly to adjust for inflation |
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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 |
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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 |
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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 |
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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 |
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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) |
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WELFARE REFORM HAS MADE IT MORE DIFFICULT FOR THE WKING POOR TO RECEIVE ANY KIND OF AID | |||||
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A major goal of the Welfare to Work Program is to move people off of welfare to work, & to provide a living for them |
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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 |
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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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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 |
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Interest rates affect the amount of money that investors are willing to borrow to create more jobs |
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The money supply affects the amount of money that is available for investors to borrow |
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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 |
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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 |
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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 |
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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 |
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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 |
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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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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 |
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Weber holds that the modern occupational structure is characterized by conflict & competition in the marketplace |
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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 |
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As compared to the US, Europe supports the poor, while the US lets them fail | |||||
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There have been structural changes in the US economic system that have affected structural mobility |
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In the early 1900's 20 mm moved from farm to LC, WC & MC: there were not enough WC & MC jobs |
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The labor movement created the blue collar aristocrats, i.e. those who had high paying blue collar jobs |
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In the 1980s, the blue collar aristocrat jobs disappeared |
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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 | |||||
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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 |
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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 | |||||
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See the history of Social Mobility | ||||
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Unemployment rates are deliberately regulated by the govt by TWO major processes, including monetary policy & fiscal policy |
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See Also: Unemployment | |||||
The US has a dual economy w/ pockets of poverty on one side & economic prosperity on the other | |||||
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Pockets of poverty are frequently located in urban centers, areas w/ a high concentration of cyclic industries such as autos, steel, clothing |
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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? | |||||
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The development of the Appalachian mtn coal region provides SIX examples of how govt policy has created wealth & poverty |
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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 |
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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 | |||||
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Poverty is related to the western industrial property structures for THREE reasons |
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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 | |||||
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Poverty is related to the western industrial authority structures for the reason that the lower class has almost no political power |
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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 | |||||
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For non blue collar aristocrats, concessions usually come in the form of welfare benefits |
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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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- Project:Video: Poverty Programs |
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- Video: Poverty Programs 2:10 min |
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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 |
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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 |
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Charity is assistance provided by non governmental organizations ( NGO's ) such as churches, the Salvation Army, & other non profit & for profit charitable organizations |
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Public assistance in the US comes primarily from federal & state governments but it is sometimes administered by local govt. |
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Technically public assistance does not include social security because these are funded mainly by special payroll taxes on workers & employers |
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Social security in the US includes old age survivors, disability & health insurance, unemployment insurance, and workers compensation |
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Unlike welfare, social insurance programs provide benefits to people whether they are poor or not |
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The welfare state does more for the middle class, the corp class & the upper class than for the lower class |
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There are FIVE basic types of welfare in the US including Medicaid, TANF, SSI, food stamps, & other misc. programs |
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The federal & state govts of the US serve the needy through about 60 programs | |||||
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1. Medicaid provides free medical care to the needy |
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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 | |||||
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Aid to Families w/ Dependent Children (AFDC) provides cash benefits to dependent children & the adults caring for them |
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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 | |||||
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A means test is the government's method of determining ones income |
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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 | |||||
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3. Supplemental Security Income for the aged, blind, & disabled ( SSI ) provides financial aid to the needy over 64 yrs. of age or are blind or disabled |
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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 | |||||
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4. The Food Stamp Program ( administered by the USDA ) helps the poor buy more & better food. |
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If eligible, a family is issued food stamps which can only be used to buy basic necessities ( no alcohol, tobacco, etc. ) | |||||
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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. |
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General Assistance is state & local only type of welfare for the poor who can't get any federal assistance |
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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 |
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An analysis of the Allocation of Federal Entitlements shows that most entitlements do not go to the poor ( 13 % ) |
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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 |
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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 |
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Table 9 - 7 Percent of Central Government Expenditures Spent on Housing, Social Security & Welfare: 1987 - 1989 |
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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 |
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Table 9 - 8 Percent of Population Covered by Public Health Insurance, 1990 |
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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 |
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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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WELFARE REFORM ESTBED LIMITS TO THE AMT OF WELFARE ONE MAY RECEIVE & GAVE THE STATES GREATER LATITUDE IN CUSTOMIZING THEIR WELFARE SYSTEMS | |||||
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In 1992 & 1996, the Clinton Administration & a Republican Congress passed welfare reform, called the "Welfare to Work Program" |
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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 | |||||
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WELFARE REFORM WAS NEEDED TO ADDRESS THE 'CULTURE OF POVERTY' PROBLEM BY GETTING PEOPLE OFF WELFARE INSTEAD OF MAINTAINING THEM ON IT |
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Welfare reform was instituted because the structure of the old welfare program actually causes people to stay poor |
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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 |
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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) |
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EVALUATION OF THE 1996 WELFARE REFORM SHOWS MIXED RESULTS |
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This program has drastically reduced the number of people on welfare |
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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 |
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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 |
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THE MURRAY THESIS HOLDS THAT WELFARE CREATES OR ATTRACTS MORE PEOPLE TO 'THE FREE RIDE' | |||||
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William Julius Wilson examined the correlation btwn the amount of welfare people receive & the number of people on welfare |
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If the Murray Thesis is correct, the amount of welfare & the number of people on welfare should be positively correlated |
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If the Murray Thesis is incorrect, the amount of welfare & the number of people on welfare should be negatively correlated |
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MOST SOCIAL SCIENTISTS HAVE DISPROVED THE MURRAY THESIS & FOUND THAT WELFARE USE GOES UP WHEN THE ECON GOES DOWN | |||||
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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 |
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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 |
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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 |
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Jencks found that the availability & levels of welfare benefits had little effect on the proportion of single mothers who were employed | ||||
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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 |
Internal
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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 |
Internal
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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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Functionalism notes that there is poverty & stratification in every society, indicating that poverty & stratification are necessary for society to function |
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Poverty & stratification become dysfunctional when they are too great |
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Economic inequality is one of the most important causes of conflict & disorder in society |
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||||
Those at the very bottom of the economic hierarchy often become hopeless & alienated & "drop out" |
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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 |
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For functionalists, there is evidence that too much poverty, stratification, & inequality can be dysfunctional even for the upper classes |
|
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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 |
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||||
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 |
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||||
Davis & Moore on Poverty, Strat, & Inequality | |||||
Critique of Davis & Moore on Poverty, Strat, & Inequality |
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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 |
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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 | |||
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Davis & Moore hold that poverty, stratification, & inequality exist because they meet society's needs for productivity by motivating people |
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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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- 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 |
|
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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 |
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Poverty, stratification, & inequality cause class conflict |
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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 |
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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 |
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Overthrow of advanced capitalist society has not happened because |
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||||
- 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 |
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||||
- the rise of the middle class has lessened the enmiseration of early, laissez faire capitalism |
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||||
- 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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The End
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