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Social Classes And Poverty2
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  • 1. How America Divides SOCIAL CLASSES
  • 2. Social Class Divisions
    • Sociologists have labeled six classes that exist in the United States:
    1) Upper Class 2) Upper Middle Class 3) Lower Middle Class 4) Working Class 5) Working Poor 6) Underclass
  • 3. Social Class Divisions The Upper Class  1% of the population Education Level: Prestigious Universities
    • Occupations:
    • Owners of large businesses
    • Investors
    • Heirs to family fortunes
    • Top Business Executives
    Income = MILLIONS!
  • 4. Old $$$ vs. New $$$ Old Money = wealth that has been in the family for generations (born into, inherit) Ex: The Kennedy’s, Rockefeller’s, Vanderbilt’s New Money = newly rich, acquired their money through own efforts rather than inheritance. (Not as prestigious, but can still buy it) Ex: Bill Gates, Mark Cuban, Michael Jordan
  • 5. The Upper Class The Richest Americans
  • 6. Upper Class- Bill Gates’ Home
  • 7. Reception Room- Gates’ home
  • 8. View from Gates’ home
  • 9. Bill Gates’ Car
  • 10. The Upper Class
    • Facts about: The Richest Americans
    • 1 in 10 Americans makes over $100,000
    • Less than 0.5% makes a $1,000,000 (150,000)
    • There are currently 371 billionaires in the United States.
    You are twice as likely to be struck by lightning than you are of becoming a billionaire.
  • 11. Social Class Divisions Upper Middle Class  10% of population Education Level: College/ University Degree Occupation: High income business people, professionals Membership based on income, not assets (career oriented) Influence in community, not nationally. Income: $100,000-$250,000
  • 12. Social Class Divisions Lower Middle Class  20% of the population Education Level: High School, some College Occupation: White collar workers (management, supervisors, sales) Income: $50,000- $100,000 They live well, but have to work to keep their way of life and position in society.
  • 13. Social Class Divisions The Working Class  20% of the population Education Level: High school diploma Occupation: Blue Collar or Manual labor jobs (factory workers, tradespeople, low service jobs) Income: $30,000- $50,000 They work very hard and often do not have much reserve to deal with extra expenses.
  • 14. Social Class Divisions The Working Poor  45% of the population Education Level: Some high school, (often dropouts) Occupation: Lowest paying jobs, (housecleaning, minimum wage jobs, migrants) Income: less than $30,000 They rarely make a living wage.
  • 15. Social Class Divisions The Underclass  3% of the population Education Level: some high school Occupation: some work, but it is undesirable, experienced unemployment and poverty over several generations. They require public assistance to survive. 50% move up to a higher class.
  • 16. Types of Jobs/ Salaries The divide b/t rich and poor: Bill Gates = $50 billion net worth Dave Matthews= $28 million/ yr. Jerry Seinfeld = $98 million/yr. Tyra Banks= $14 million/ yr. Lawyer= $98,930/ yr. Firefighter= $39,090/ yr. Janitor= $19,390/ yr. Cashier= $16,260/ yr.
  • 17. Social Mobility How can you move between or within the classes? 1) Horizontal- movement within a social class to a job of equal social ranking (doesn’t change status) 2) Vertical- movement up or down classes that changes a person’s social standing 3) Intergenerational- a status change in a family between generations.
  • 18. Social Mobility Factors that affect upward mobility: - Individual Effort - Technology shifts - Education Level Factors that affect downward mobility: - Illness - Divorce - Retirement - Technology changes - Low Unemployment- lack of quality jobs in field
  • 19. Poverty
    • 31 million or 11% of Americans live below the poverty level.
    • Poverty- standard of living that is below the minimum level considered adequate by society. (varies by society)
    • **What is poor in US, may be comfortable living in another country. (Due to differences in standard of living)
  • 20. Poverty US Census- defines poverty as: minimum annual amount of income needed to survive The poverty line is established by: calculating the cost of an adequate diet (USDA standards) and multiplying that by 3 (1/3 of income is spent on food) In 2000, 1 Person = $8,794 2 People = $11,239 3 People = $13,738 4 People = $17, 603 5 People = $20,819
  • 21. Poverty States with the largest rates of poverty (over 15%):
  • 22. Poverty
    • Other Factors
    • Age: Children most likely group to be in poverty (37%)
    • Sex: Women more likely than men (57%)
    • Race and Ethnicity- African Americans and Hispanics are more likely to be poor in the US.
    • 11% of total White population are poor.
    • 26.5% of total African American population are poor.
    • 27.1% of total Hispanic population are poor.
  • 23. Poverty Patterns of Behavior More likely to be divorced. More likely to be arrested, convicted and sent to prison. (commit crimes that police pursue more- burglary, auto theft) More likely to be victims of crimes.
  • 24. Poverty Government Response to Poverty: - 1960’s, LBJ declared a “War on Poverty” - Increased social welfare programs to aid the poor.
    • Two methods of assisting the poor:
    • Giving tax money to groups to assist the needy.
      • --TANF (Temporary Assistance to Needy Families)
    • Giving goods to those who are poor.
    • -- Food stamp/ LINK program (Giving a card or coupon in exchange for food.
  • 25. Poverty Welfare A program designed in the 1980’s to aid those who could not afford a living wage. Financial assistance is given to recipients in the form of money and goods (such as food) to those who are in need. Initially, it created a “welfare class”, a group of people who refused to find work and lived off the government until 1996. Limits were put into effect that required welfare recipients to find work within in a two year period. **the number of recipients has decreased from 14.1million in 1993 to 6.3 million in 1999.
  • 26. Poverty Welfare (con’t) Some Barriers to getting off of welfare: - very poor mental or physical health - education less than high school - last worked three or more years ago - has an infant - Spanish interview Those reporting barriers: NONE = 22.9 ONE = 33.3 TWO = 43.8