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Understanding the American Class System and Poverty

Explore the American social class system, from the upper class to the underclass, and the impact of poverty on society. Learn about social mobility, influential figures like Bill Gates, and government responses to poverty.

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Understanding the American Class System and Poverty

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  1. Ch.8 Sect.2: The American Class System

  2. Determining Social Class • Social inequality exists in all… • US has a fairly open system • No discrimination • Social mobility equal? • Many ways to look at class divisions • Most use 6 class system: upper class, upper middle, lower middle, working, working poor, underclass (p. 194) • Reputational method • Subjective method • Objective method

  3. Social Classes in the US • 1% upper class • 14% upper middle • 30% lower middle • 30% working class • 22% working poor • 3 % underclass • Income is major difference! • Lifestyles, beliefs • Tammy Update

  4. The Upper Class • Controls… • “old money” • Rockefellers, Vanderbilts, Du Ponts • Wealthy for generations • Family name… • Born into… • New rich acquire wealth… • Purchase… • Power and influence • Charities • Bill Gates Wealth

  5. Mini Bios • Bill Gates • Steve Jobs • Mark Zuckerberg • Kobe Bryant • Peyton Manning • Richest Americans

  6. Vanderbilt's House

  7. The Upper Middle Class • High income businesspeople • College education • Money buys them… • Career oriented • Power at community level

  8. Lower Middle/Working Class • White collar jobs • Nursing, middle management, sales • Small business owners • Manual labor • Factory workers… • Blue collar jobs • Pink collar jobs • Financial reserves?

  9. Working Poor/Underclass • Lowest paying jobs • Temporary/seasonal • Rarely make living wage • Govt. support • High school dropouts • Unemployment/poverty • Chief income=public assistance • American Dropout

  10. Social Mobility • Social Mobility • Horizontal Mobility • Vertical Mobility • Intergenerational Mobility • All people are free to reach own level of achievement • Majority of Americans achieve…

  11. Upward/Downward Mobility • Factors=technology, merchandising patterns, education • New generation of workers take advantage of technology change • Farming technology • Manufacturing • Credit industry, insurance… • White collar jobs • Level of education 75%-9% • What leads to downward mobility? • Changes in economy #1

  12. Ch.8 Sect.3: Poverty • 31 million below poverty line • Poverty— • Same in all societies? • US Bureau of the Census def. • Poverty level… • How do you calculate it? • Family of 4 • Critics question…

  13. American Poverty • Children have the largest % in poverty • 37%... • Black and Hispanic… • 57%... • Women head ½ of all poor families • Regardless of age or sex… Chart p. 198

  14. The Effects of Poverty • Life chances— • Include… • Lower the social class… • Most important chances are health and length of life • What rates are highest among poor? • Life expectancy— • Poor children… • Bad nutrition/medical care • Health insurance • Work environment • School funding

  15. Patterns of Behavior • Divorce rates higher • Likely to be arrested, convicted, sent to prison • Violent crime • Crimes against property • Also poor more likely to be victims of crime

  16. Government Responses to Poverty • 1964 LBJ • Elderly poverty on decline, why? • Transfer payments— • Govt. subsidies include Food Stamp program • Other subsidies include… • “welfare class” • Personal Responsibility and Work Opportunity Reconciliation Act • Fewer people on welfare?

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