This document discusses structural economic perspectives on poverty. It outlines two eras since 1945 - a "Golden Age" of declining poverty from 1945-1973 due to strong economic growth, and a "40-year slump" since 1973 where productivity and wages have slowed. Two theories are presented: technology theory argues technological changes favor educated workers, while power shift theory sees a deterioration in jobs and rising inequality between corporate profits and worker wages. Key economic issues related to poverty are also examined, including deindustrialization, globalization, corporate restructuring, and a shortage of jobs.

1. Sociology of Poverty
MOD 6: Structural Perspectives (Economic)

2. Two Distinct Eras in Recognizing Poverty
 1945-1973 – The Golden Age
 Strong economic growth and rising productivity
 Workers’ wages rose steadily
 Rate of poverty declined sharply
 1973-present – the “40-year slump”
 Productivity and economic growth slowed
 Lower corporate profits and earnings for workers
 Increased unemployment rate

3. Two Economic-Related Theories
 Technology theory
 Related to the human capital theory (individualistic perspective)
 “Technological change…has induced a shift in the demand for labor—to the
advantage of those with more education” (Royce, 2015, p. 89).
 Power shift theory
 Related to conflict perspective (division between business owners and workers)
 “The transformation of the American economic system since the early 1970s has
produced a deterioration in the quality of jobs, especially for less-educated
workers” (p. 95).

4. Technology Theory
 Related to the human capital theory (individualistic perspective)
 “Technological change…has induced a shift in the demand for labor—to the
advantage of those with more education” (Royce, 2015, p. 89).
 Skills mismatch exists between what jobs demand and workers bring
 CRITIQUE: “Computerization does not necessarily increase skill
requirements…and may even leading to deskilling: cashiers using scanners at
the checkout counter” (p. 92.

5. Power Shift Theory
 Conflict perspective divisions -- 4 examples:
 Profits vs. wages
 “Corporate profits have increased…while wages salaries have decreased” (p. 94).
 Productivity vs. pay
 “Beginning in the 1970s….worker compensation fell behind productivity growth” (p. 94).
 Supervisory work vs. production work
 Massive income shift recognized in “those who watch over those wo do the work” (p. 94).
 CEO vs. workers
 “In 2013, the typical CEO of a large firm received in compensation 296 times that of the
typical worker” (p. 95).

6. Key Economic Issues Related to Poverty
 Deindustrialization
 Globalization
 Corporate Restructuring
 Shortage of Jobs

7. Key Economic Issues Related to Poverty
 Deindustrialization – significance of the manufacturing industry
 1959: 15.3 million manufacturing jobs
 1969: 18.6 million jobs
 Historic low 11.5 million in 2010
 Rising modestly to 12.1 million in 2014
 Rise of jobs in the service industry
 Lower wage levels
 Unlikely to unionize

8. Key Economic Issues Related to Poverty
 Globalization
 “Commonly used to refer to the growing integration of national
economies, an outcome of international trade” (p. 99).
 Technological advancements in transportation and communication have
widened the global reach for businesses to focus on profits
 Not only an economic and technological issue -- also a political matter
 Trans-Pacific Partnership
 China and giant retailers drive U.S. business out of business or overseas – creating a loss of
millions of U.S. jobs (p. 100).
 Uneducated workers are now competing with a global population of workers

9. Key Economic Issues Related to Poverty
Effects of Globalization:
 Outsourcing and offshoring (moving jobs or companies overseas)
 Reduced quality of jobs
 Workers have to accept lower quality service jobs
 Heightened feelings of job insecurity
 Undermines democracy
 Neoliberal globalization “promotes free-market capitalism on an
international scale” and plays “a significant role in the perpetuation of
poverty and inequality” (p. 104).

10. Key Economic Issues Related to Poverty
 Corporate Restructuring
 Changing hiring and wage-setting practices
 Replacing regular, FT employees with a PT and temporary workforce
 1993 TIME magazine’s “The Temping of America”
 Types of Labor Opportunities
 Day Labor
 Temporary Workers
 Regular Part-Time Workers

11. Key Economic Issues Related to Poverty
 Jobs Shortage
 Two aspects of the U.S. employment crisis: number of jobs & job quality
 Shortage of jobs creates four groups:
 Unemployed
 “Inactive unemployed” -- those who have given up looking for work
 Involuntary part-time workers
 FT, regular workers living in poverty