The document discusses how the American political system contributes to poverty from a structural perspective. It argues that the system is designed to protect privileged interests rather than help the poor. Government does less than other nations to reduce poverty through taxes and benefits. Businesses have outsized political influence through lobbying and campaign donations, exacerbating inequality. The two-party system and checks and balances favor those with money. As a result, policies around minimum wage, unemployment insurance, welfare and labor laws do little to help the poor.

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

2. Purpose of Political System
 “Everything government does—whether at the federal, state, or local level—
redistributes resources and opportunities” (Royce, 2015, p. 113).
 The political process is based “balance of power between contending groups”
(p. 114).
 Related to the conflict theory
 The gap between the rich and the poor in the U.S. “has widened more since the
1970s than any other industrialized nation” (p. 114).

3. Pre- and Post-Transfer Poverty
 Pre-transfer poverty makes up those whose income is less than the poverty
threshold before government benefits and taxes
 Post-transfer poverty includes those with income less than the poverty
threshold after accounting for government benefits and taxes
 The difference between pre- and post-transfer poverty is really a measure of
“how much government contributes to the reduction of poverty” (p. 116).
 Main finding: Other industrialized nations’ government do more to reduce
poverty than the United States

4. Political System Influential Features
 The American political structure is designed to “protect the interests of the
privileged than to serve the needs of the poor” (p. 118).
 The 2-party political structure creates a “winner take all” mentality that
inhibits additional parties to form
 The checks and balances process creates a multi-layered system that favors
those with economic capital (money), such as businesses, lobbyists, political
donors, etc.
 “Drift” is created where “systematic, prolonged failures of government to respond
to the shifting realities of a dynamic economy” occurs (p. 121).
 Decentralized federal structure allows for less widespread redistributive
reforms to tackle poverty from a broad standpoint

5. Businesses have Political Power
 Government tends to respond more when mass public attention is brought
to the business sector through strikes, public movements, etc.
 Corporate business has been responding to downturns since the 1970s
 International competition
 Declining profits
 Global resistance to the U.S.
 Consumer, environmental, and labor group activism
 Corporate business response created very powerful conservative think
tanks, such as the Heritage Foundation, which has become known as the
“political arm of big business” to advance the “broad goals of corporate
America” (p. 124).

6. Political Power Gap
 “The political participation gap between the rich and the poor is
large, more so in the United States than in other democratic
nations” (p. 124).
 People are more private than public nowadays
 We favor a “culture of consumerism” over a “culture of citizenship”
 Americans are more skeptical and/or disillusioned about the
political system
 For many (e.g., felons voting rights), political participation isn’t
allowed

7. Structural (Political) Explanations
 Decline of Organized Labor
 There is a distinct connection between union strength and worker compensation,
which suffers when organized labor doesn’t exist or is suppressed
 There are several political functions that unions serve (see Royce, 2015, p. 126)
 Transformation of American Liberalism and American Civic Life
 Middle-class service industry has taken the spotlight from the blue-collar class
 “Membership organizations” that once advocating for the poor have been replaced
by “advocacy groups” who are hired by larger groups to protect their more
privileged interests
 The Politics of Race
 Social welfare spending is lower in racially diverse countries and areas

8. Politics is a Cash Game
 “The synergy of money and power has reinforced the rightward shift in the
American political system” (p. 129).
 Outcomes:
 “The preferences and priorities of the richest Americans…differ significantly from
those of the general public…the affluent are much more conservative” (p. 129).
 Reactions:
 Citizen United court ruling has allowed the wealthy to exert a significant amount
of monetary influence over public issues, public officials, and political parties

9. Four Important Policy Arenas
 Minimum Wage
 Not indexed to the rate of inflation, so those living on minimum wage live well-
below the poverty line
 Unemployment Insurance
 States administer the program differently and many fall through the safety net due
to eligibility, limits, etc.
 Welfare Reform
 Temporary Aid to Needy Families (TANF) reform created significant reduction in
welfare rolls, but didn’t reduce the number of people eligible of benefits
 Labor Law
 Low level of unionization exists in the U.S.
 “Wage theft” often occurs in business without union representation and protection

10. Positive Functions of Politics on Poverty
 Earned Income Tax Credit provides an income boost to the poor
 Food stamps and other nutrition programs
 Medicaid (health care for the poor and disabled)