THE AMERICAN DREAM The Role of Social Class in the Pursuit of Happiness

AMERICAN DREAM
Land of Opportunity Rags to RichesAnyone can become rich, famous, powerful. Jobs and education available to all who want them. Meritocracy (rewards)=skill + effort. Through hard work, courage and determination one can achieve prosperity. Americans can live better than their parents did.

We hold these truths to be selfevident, 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

Social Mobility
The movement of families up and down the economic ladder 40% of incomes stayed at about the same level; 60% moved up or down. Only 37 of Americas 400 wealthiest inherited their money from their family.

Social Classes
The hierarchical distinctions between individuals or groups in societies.

Social Stratification
The study of systematic inequality between groups of people

What are the key features of social class?

WEALTH
Valued possessions : cash, land, buildings, property Income : money from employment, shares etc. Tends to be intergenerational

POWER
Ability to carry out ones will, even if opposed by others Who has power???

PRESTIGE
Respect given to people with valued positions or resources

Upper Class Facts

Q. What % of Americans belong to the upper class?
0.5%

Q. Extent of wealth?
Top 1% owns more than one third of ALL net worth in the U.S. 50% U.S. stocks, 60% bonds; corporations, property, inheritances; income mostly from investments not employment

Q. Source of power?
Ownership of resources - money makes money Economic power and political power intertwined

Q. Source of prestige?
family name & resources (old: Rockefeller, Carnegie, Walton, Getty; new: Gates)

Corporate Class Facts

Q. What % of Americans?
0.5%

Q. Extent of wealth?
A lot, but not as much as the upper class Usually not major owners of companies median CEO salary $10.8 million President of the U.S. $400,000 (why do it then??)

Q. Source of power?
Heads of companies, government Position of influence

Q. Source of prestige?

Middle Class
The Cosby Show

Americas first black middle class TV family

Middle Class Facts

Q. What % of Americans?
43%

Q. Extent of wealth?
Some Ownershipown home Incomemid to high income
Engineer, $58,000 Teacher, $34,000 ALC Professor, ??

Q. Source of power?
Limited within context of occupation Some more than others, White collar job

Q. Source of prestige?

Working Class

Photograph from a book

Working Class Facts

Q. What % of Americans?
43%

Q. Extent of wealth?
Little Ownershiplittle or no property Incomemid to low
Factory worker, $24,000 Machine operator, $23,000

Q. Source of power?
Limited, sometimes collective power through unions

Q. Source of prestige?
Very little, Blue collar jobs

Lower Class

Homeless man in New York - one of thousands

Lower Class Facts

Q. What % of Americans?
13%

Q. Extent of wealth?
Very little, usually none Ownership: none Income: low
Poverty rate in 2001: 9.9% Only about 1/3 of poor get welfare

Q. Source of power?
Limited to none

Q. Source of prestige?

Inequality Based on Class

HealthHigher class live longer (79.2 years vs. 74.7 years). Crimeimpoverished areas tend to have higher crime rates Educationdespite continued increases in financial aid, the proportion of higher class students at elite schools is increasing. Familieshigher class are more likely to have children while within marriage and at older ages.

Distribution of Wealth

Racial gaps in the labor market

Race Hispanic or Latino White Black American Indian Asian Native Hawaiian or Pacific Islander Unemployment, 2000 9.3% 4.3% 11.8% 12.4% 5.1% 10.9%

Gender gaps in the labor market

More men work full time than women, but comparing men and women who work:
Median Income
Male Female $29,458 $18,957

For every dollar men make, women make 64 cents

Why does the gender gap exist?

Education?
Women make up over 50% of students in college
Men and Women with a BA (1999) Male $47,126 Female $34,455

Men work more hours?

Women in full-time work earn less than men with the same educational qualification

Poverty rates and Gender

30 25 20 15 10 5 0 In families In Female married- headed couple families families Male headed families Total

Revisiting the American Dream

Land of Opportunity?
rags to riches or the rich get rich? classes tend to reproduce themselves (e.g. occupational & wealth inheritance, legacy admits) are all jobs open and equal for everyone? clearly not

Social class is achieved or ascribed?

between 40 to 60% of parental income advantage passed on to children

A meritocracy?
barriers to channels of upward mobility (e.g. a good education)

American: A Tale of Two Cities