Social Problems: A Down-to-Earth Guide, 11e James M. Henslin

Chapter 7Economic Problems:

Poverty and Wealth

Learning Objectives7.1 Summarize the major economic problems facing the United States, the three

types of poverty, and the problems with the poverty line. 7.2 Explain how subjective concerns have changed the social problem of poverty

over time, structural inequality, the basic distribution of income and wealth in the United States, and the impact of poverty.

 7.3 Summarize the different pictures that emerge when you apply symbolic

interactionism, functionalism, and conflict theory to the social problem of poverty. 7.4 Summarize research findings on who the poor are, a culture of poverty, who

rules the United States, and explanations of global poverty. 7.5 Explain how shifting views have influenced social policy, what progressive

taxation is, and what social programs to relieve poverty are being implemented or considered.

 7.6 Explain what the likely future of the social problem of poverty is and why.

7.1 – The Problem in Sociological Perspective

• Economic Problems Facing the United States

• The Nature of Poverty

Economic Problems Facing the United States

• Booms and Busts– Economic storms of change

• Stagnant Incomes– Our dollars buy less

• A Debtor Nation – $16 trillion in national debt

The Nature of Poverty

• Types of Poverty– Biological – Relative– Official

• Poverty Line

• Problems with the poverty line

What a world of difference for the rich and the poor around the globe: current life circumstances, hopes for the future, and life orientations. The one is hoping for a new diamond, the other for food. The debutante on the left lives in the United States. The ragpicker on the right lives in India.

7.2 – The Scope of the Problem

• Subjective Concerns and Objective Conditions

• The Situation Today

• Social Inequality

• Distribution of Income and Wealth

• The Impact of Poverty

Subjective Concerns and Objective Conditions

• Changes in Concerns and Conditions– Industrialization

• Launching the War on Poverty – Kennedy, 1962

The Situation Today

• 21st century concerns of poverty receded – 2008 brought some outcry

• Reaching a Plateau– No reduction since the 1960s

• Arbitrary and Controversial Numbers

• The Significance of Poverty

This cartoon pinpoints the arbitrary nature of the poverty line. This makes me almost think that the creators of the Wizard of Id have been studying sociology.

Social Inequality

• Ideals Versus Reality – Equality, opportunity, and success– Deny or not, programs exist to produce equal

opportunity

• Structural Inequality– Inequality built into social institutions

Poverty is much more than having little money. Poverty means the reduction in life chances.

Distribution of Income and Wealth

• Inequality of Income – Flow of money is not equal

• Inequality of Wealth– Americans own $60 trillion worth

• Wealth and Power

The Impact of Poverty

• Housing and Mortgages– Poor quality and high fees

• Education – Poor property = poor schools

• Jobs – Poor education makes the job market restricted.

• Criminal Justice – Illegitimate opportunities

• In Short: Quality of Life

How we define reality depends to a large extent on where we are located in the social class structure. Poor Americans are not likely to have the view illustrated in this cartoon.

7.3 – Looking at the Problem Theoretically

• Symbolic Interactionism

• Functionalism

• Conflict Theory

Explore: Poverty: The Role of Poverty - Should this be Next Door to Greatness: Poverty in Cambridge, MA

http://www.socialexplorer.com/SpiceMap/?v=90d2250018724728

Symbolic Interactionism

• The Relativity of Poverty– Poor by comparison

• Changing Meanings of Poverty– Poverty changes as social conditions change

Functionalism

• How Income Inequality Helps Society– Serves as motivation

• How Poverty Is Functional for Society– poor people contribute to society’s well-being

With tough economic times, a lot of people have lost their jobs—and their homes. If this happens, how can you survive? Maybe with a smile and a sense of humor to tap the kindness of strangers. I took this photo outside Boston’s Fenway Park.

Conflict Theory

• The Cause of Social Inequality– Limited resources

• A General Theory of Social Class– Marx and class consciousness

• Modifications of Conflict Theory– More than two classes– Role of unpaid workers

7.4 – Research Findings

• Who are the Poor?

• Is There a Culture of Poverty?

• Who Rules the United States?

• Inequality and Global Poverty

Listen: NPR: A Few Small Steps to Homelessness

http://www.npr.org/templates/story/story.php?storyId=4568815

Who are the Poor?

• Permanence of Poverty– Most people do not remain in poverty

• State and Region – Location, location, location

• Race–Ethnicity• Children and the Elderly

– Better to be old• The Feminization of Poverty• Minimum Wage Workers • Social Structure

Poverty in the United States has become concentrated among women and children. Sociologists call this pattern the feminization of poverty. Poverty is especially high among teenage mothers. These two high school students in Minneapolis are dropping their children off at day care while they attend classes. The day care helps young women complete high school, increasing their chances of avoiding poverty.

This man in California has a full-time job, but, unable to afford an apartment, he stays at a homeless shelter.

Is There a Culture of Poverty?

• A Culture of Poverty – Way of life– Blame the victim

• Testing the Concept – Is it true?

HERBERT GANS, professor of sociology at Columbia University, is a past president of the American Sociological Association. He has written extensively on urban poverty and antipoverty policy. Here is what he wrote for you.

Who Rules the United States?

• Who Has The Power?

• The Power Elite

• The Pluralist View

• Continuing Research on the Controversy

• The Culture of Wealth

Because the Power Elite does not meet as a group, it cannot be photographed. The Forbes are part of this group. Shown here are Malcolm Forbes and his three brothers at the Forbes Building. Their collection of nine Faberge Easter eggs that used to belong to the czars of Russia sold at auction for $100 million.

Inequality and Global Poverty

• Global Stratification– Residual vs. mass poverty

• Economic Colonialism– Economic invasion

• National Power Elites– Hoarded wealth

• A Culture of Poverty

Life in the slums isn’t healthy for anyone. You can see the open sewage trench in this Brazilian favela. Beyond this negative aspect of living here are the death squads discussed in this box.

7.5 – Social Policy

• Changing Views and Changing Social Policy • Progressive Taxation • Public Assistance Programs • Feminized Poverty and Child Support • Private Agencies and Faith-Based Programs • The Purpose of Helping the Poor • Jobs and Child Care • Education Accounts • Giving the Poor More Money

Changing Views and Changing Social Policy • Early United States

– Poor are wayward and lazy– Cities corrupt

• The Great Depression – Poverty skyrocketed– Middle-class stood next to “old poor”

• World War II – Poverty declined

• The Basic Difference—Cause as Inside or Outside of People.

To help those suffering during the Great Depression of the 1930s, the federal government began the Works Progress Administration (WPA). Participants followed the traditional gender roles of the time, with men doing construction and women using homemaking skills.

Public Assistance Programs

1. Social Insurance

2. Teaching Job Skills

3. Welfare

4. Workfare

This woman is waiting in a county welfare office in Sacramento, California. She is fearful that with the state’s budget deficit the food stamps for her daughter will be cut.

Feminized Poverty and Child Support

• Women with children make up most of the poor.– Unequal pay– Expensive childcare

• Absent fathers should support children.

Private Agencies and Faith-Based Programs

• Helping the poor is not limited to the government.– Private agencies help the desperate poor

• Faith-based agencies can compete for federal funds.

The Purpose of Helping the Poor

• Regulating the Poor– Used during booms, left during busts– Welfare rule enforcement

Jobs and Child Care

• To deal with poverty, provide jobs.– Government or private creation– Wages need to lift people out of poverty

• Child care and transportation are also necessary.

Education Accounts

• Government could establish credit for every citizen for education– Used at an approved institution– Only for education expenses– Students must make progress in program

If this coal miner in Illinois were your father and you go to college, can you see how your worlds would become separated?

Giving the Poor More Money

• Income Maintenance Experiments – Random samples– Urban and rural– Avoided welfare wall– Some worked less, most did not – Spent more on durable goods– Saved less

7.6 – The Future of the Problem

• Any solution will cost us.

• Views are divided on what to do for poverty

• Poor do not have political power

Question for Discussion

What are some possible policies to help those in poverty?