THE AMERICAN DREAM

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THE AMERICAN DREAM
Land of opportunity
We can do anything as long as we try!
Rags to Riches
Anyone can become rich and powerful!
Work hard, and youll make a better life for
yourself and your family!
Meritocracy skill effort reward
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Austrian immigrant governor of California
Grew up poor richest women in America
Lived in his car billion-dollar food empire
Russian immigrant fashion billionaire
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THE DECLARATION OF INDEPENDENCE

• We hold these truths to be self-evident, that
  all men are created equal, that they are endowed
  by their Creator with certain unalienable rights,
  that among these are Life, Liberty, and the
  Pursuit of Happiness.

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SOCIAL MOBILITY

• DEFINITION the movement of families up and down
  the economic ladder
• STATISTICS
• 40 of incomes stay the same.
• Only 37 of Americas 400 wealthiest people
  inherited their money from their family.

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20 about the same 27 somewhat better 39 much
better 86 think they are doing the same as or
better than their parents
58 agree in 1983 80 agree in 2005 more and
more people think that you can start poor and
become rich
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SOCIAL STRATIFICATION

• DEFINITION the study of systematic inequality
  between groups of people.
• IN TERMS OF

Class
Gender
Race
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SOCIAL CLASS

• DEFINITION the hierarchical distinctions
  between individuals or groups in societies.
• KEY FEATURES

Wealth income, savings, investments, property
Power the ability to do what you desire, even
if others oppose
Prestige respect and deference for a valued
position
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SOCIAL CLASS THE UPPER CLASS
0.5 of Americans belong to the upper
class. Wealth VERY HIGH Power HIGH Prestige
HIGH
Wealth Top 1 owns 33 of all net worth in
the United States. Their incomes come mostly
from investments such as stocks and bondsso
they keep making more and more money. Power
Their resources give them a lot of buying
power. Their wealth also gives them a lot of
political power. Prestige Family names
rich and powerful. ExamplesRockefeller,
Carnegie, Gates.
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SOCIAL CLASS THE CORPORATE CLASS
0.5 of Americans belong to the corporate
class. Wealth HIGH Power HIGH Prestige HIGH
Wealth They are not as wealthy, but still
earns a lot of money. The median salary of a
CEO is 10.8 million. Power They tend to be
heads of companies or in the government. They
have a lot of power over the people they direct
and in society. Prestige They are in
positions where they have a lot of influence.
They tend to be considered high-status.
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SOCIAL CLASS THE MIDDLE CLASS
43 of Americans belong to the middle
class. Wealth MEDIUM Power MEDIUM Prestige
MEDIUM
Wealth They have some wealth, but less
property and lower incomes. The median salary
is 34,000 for a teacher, 58,000 for an
engineer. Power They tend to work for other
people and they have fewer resources. They
tend to have less power than the upper or
corporate classes. Prestige They tend to
work white-collar jobs. This gives them
respect and some status.
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SOCIAL CLASS THE WORKING CLASS
43 of Americans are in the working
class. Wealth MEDIUM TO LOW Power
LOW Prestige LOW
Wealth They own and earn very little. The
median salary is 24,000 for a factory worker,
23,000 for a machine operator. Power
They have few resources and work in low
positions. Sometimes, they can form unions to
get some power. Prestige They tend to work in
blue-collar jobs. These jobs usually get less
respect.
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SOCIAL CLASS THE LOWER CLASS
13 of Americans belong to the lower
class Wealth LOW TO NONE Power VERY
LOW Prestige VERY LOW
Wealth They usually own nothing and work in
very low-paying jobs. They tend to be very
poor, but only about 33 of them get
welfare. Power They have few or no resources
to help them bargain for power. They tend to
be excluded from political processes. Prestige
They are often jobless or working menial
jobs. They get little respect.
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CLASS DIFFERENCES
Who lives longer?
Upper class
Who goes to elite colleges and universities?
Upper class
Who lives in worse neighborhoods?
Lower class
Not everyone is mobile.
Intergenerational transmission of advantages and
disadvantages
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LIMITED MOBILITY
Least movement on the top and on the bottom
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RACIAL INEQUALITY INCOME
Whites and Asians have higher incomes than Blacks
and Hispanics. These RACIAL GAPS are
substantial. Median household income Whites vs.
Blacks 15,417 Whites vs. Hispanics 12,319
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RACIAL INEQUALITY LABOR MARKET
Another racial gap how many in each racial
group are unemployed?
RACE unemployed in 2000
White 4.3
Asian 5.1
Black 11.8
Hispanic/Latino 9.3
American Indian 12.4
Native Hawaiian or Pacific Islander 10.9
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RACIAL INEQUALITY HIGH SCHOOL DEGREE
All groups are improving, BUT
Fewer Blacks and Hispanics are high school
graduates.
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RACIAL INEQUALITY COLLEGE DEGREE
Smaller improvements, AND
Fewer Blacks and Hispanics are college graduates.
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GENDER INEQUALITY INCOME
Thinking about men and women who work full-time
Median income Male 29,458 Female 18,957
Difference 10,501
For every dollar men make, women make only 64
cents
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GENDER INEQUALITY LABOR MARKET
Are differences because of
Education? Hours of work? Occupation?
Both college graduates, women lt men Both
full-time, women lt men Same occupation, women lt
men
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GENDER INEQUALITY POVERTY
Families headed by women are much more likely to
be poor.
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THE AMERICAN DREAM?
Land of opportunity?
There is SOME mobility, but it is LIMITED.
Rags to Riches?
The really rich get richer, the really poor get
poorer.
Some groupsby race, by genderstill get less
even if they work just as hard.
Meritocracy skill effort reward?