- Besides income, what are the other components of social class?
- What does the median/typical American look like in terms of wealth, education, location, power and prestige?
- How does your family or the typical family from your hometown compare to the typical US household?
- How do all of these components affect each other?
Second, write how much you think each quintile should have?
Bottom 20%:
After you have finished answering the questions above, watch this video:
What is the reality? How is the wealth actually divided?
Here is the GOOGLE FORM for this Lesson.
1. How does your guess about wealth compare to how it is actually distributed?
Wealth in the US is more disparate than income! The inequality is shocking:
Here is another representation:
This video from the ST. Louis Fed also explains the disparity in wealth in the US (2019).
The overall conclusion about wealth is that the disparity of wealth is greater than that of income (see the pie graph below). The top 1% of America owns 34% of everything. The top 10% owns 70%. And half of America owns 96% of everything. In other words, the bottom half, 50% of America, owns almost nothing. They have no money saved - for retirement or otherwise. Once you deduct their debts, they have almost no equity - from their homes, or possessions, or bank accounts.
The DQYDJ analysis of wealth in America calculates the median net wealth for Americans at $192,000 in 2023:
Another estimate of the wealth (2019) of Americans from the Aspen Institute provides a detailed analysis of the different assets of wealth that Americans hold based on their relative position:
- 90% own 1 car, 50% own 2 cars (actual average is 1.8 cars per household),
- 50% have a 401K,
- 66% own 1 home, (only 6% own a second home like a condo or lake house).
Here is a 2011 post from sociological images that has a lot of info showing the connection between your degree and your income, especially that more than any other factor, educational level contributes to lifetime income earnings and the earnings gap gets wider over time.
"...income gaps between fields are often larger than gaps between those with college degrees and those without them. Natasha Quadlin finds that this gap is in many ways due to differences in funding at the start of college that determine which majors students choose....She finds that students who pay for college with loans are more likely to major in applied non-STEM fields, such as business and nursing, and they are less likely to be undeclared. However, students whose funding comes primarily from grants or family members are more likely to choose academic majors like sociology or English and STEM majors like biology or computer science."
- BluesMatch, a company based in London that matches Oxford, Cambridge, and Ivy League graduates, said it makes sense that as people experience search fatigue from broad, impersonal online dating pools, they’re drawn to sites that narrow the field by matching users’ interests or backgrounds. “People get tired of using Tinder or Match because there are too many people,” said Law during a Skype chat from London. “And they often don’t have the level of conversation that someone from Oxford or the Ivy League gets excited by.”
- Elegant Introductions out of Miami, are matchmakers for a clientele based in Miami and Boston. Most of their clients, said Gold, are highly educated and professionally successful, are involved in their community, appreciate the arts, and have been screened to make sure they are who they say they are. Applicants have to show proof of an Ivy League degree.
How Admissions Really Work: If The College Admissions Scandal Shocked You, Read this from NPR.
There are lots of ways that wealthy families get a boost in the college admissions process. Most are quite legal.
Paul Tough's book, The Years That Matter Most is a deep-dive sociological look into college and social class. From the NY Times book review,
"... today, whether you graduate from college is largely determined by your parents’ income. In the United States, 77 percent of children born into the top income quartile will earn a degree by age 24, but for the bottom quartile that number is a mere 9 percent. The implications are clear: The education system isn’t transforming the lives of those who need it most; it is dispensing ever more opportunity to those who need it least."
Social Class Component 4: Location
Examining the largest 384 metro areas in the United States, Chicago is the 3rd most populous at 9 million people. There are different ways to measure the median metro area, but regardless of how it’s done, it is substantially smaller than Chicago. Examining the median individual American, they live in a metro area closer in size to the 50th metro region such as Fresno, CA, Grand Rapids, MI, Rochester, NY or Tulsa, OK, just above 1 million people. However, the median metropolitan area is Yakima, WA or Baldwin County, AL. Either way, the typical American lives in a small city - much smaller than the Chicago metropolitan region. And this geographic disparity of location is connected to income and class.
11. How do you think where college grads move affects social class in the U.S.?
Extra Data about Home Price:Location and home price:City-data has census data by census track including the average home price (as well as income and other data).
13. How do you think your home's value compares to the average home price? (Remember from the wealth section above, the average American owns a home.)
Location and health
Research from Melody Goodman, an assistant professor at Washington University in St. Louis presented at Harvard School of Public Health shows that zipcode is a better predictor for health than genetic code:
Residents to the north of Delmar are less likely to have a bachelor’s degree and more likely to have heart disease or cancer.
More recently, Damon Tweedy from Health Affairs summarizes new research from David Ansell, senior vice president and associate provost for community health equity and a professor of medicine at Chicago’s Rush University Medical Center,
Headlines portray Chicago, Illinois, as the epicenter of urban gun violence. But most premature deaths among Chicago’s black residents are caused by heart disease, diabetes, and cancer. In his new book... Ansell asserts that structural violence is the true cause of the dramatic...differences in death rates and life expectancy across Chicago neighborhoods. According to Ansell, this form of violence—rooted in past and present social, economic, and racial inequality—saps the lives of residents in poor neighborhoods and results in the death gap. Chicago, in this narrative, is a microcosm of America.
In this new book, he takes a larger view, focusing on how factors outside of the health care system—neighborhood segregation, in particular—affect health.
And Clint Smith, a Washington DC teacher explains in his slam poem the ways that location affects his students. As you watch, make a list of the ways that location affects them:
An online data tool called Opportunity Atlas finds a strong correlation between where people are raised and their chances of achieving the American dream.
Here is an NPR piece explaining it.
Here is the NY Times Upshot explaining it.
Opportunity Insights provides data about how neighborhoods shape residents' life chances.
This report from NPR's Planet Money details how where you grow up can affect your income later in life.
And here is a video and stats from CNN Money that show how where you grow up limits or benefits you.
- What does the median or average American look like in terms of social class?
- How does this compare to your own unique experience(s)?
- How do all of these components of social class connect to each other to either limit or advantage those in them?
Power, according to Max Weber, is the ability to impose one's will on others. Weber focused on three ways that power shows up in everyday life:
- Traditional authority - power because of social or cultural tradition like royalty or religious leaders
- Rational-Legal authority - power from law and legitimacy of the state such as judges and police
- Charismatic authority - power that comes from personal qualities that create influence over people such as Kim Kardashian or Michael Strehan
Some examples of power are the abilities to keep yourself out of jail, influence politicians and enact laws that you favor:
Here is one example from The Daily Show comparing teachers and Wall Street Investors. Can you guess who has the power? Video is available at Youtube here.Here is a link to a Washington Post article explaining that wealthy Americans use their power to create favorable government policies.This 2019 ProPublica report found that the IRS is LESS likely to audit wealthier Americans because it is more costly and difficult.And this article from the NY Times shows that an executive at United Airlines accused of corruption charges was forced to resign. Imagine if a teacher was accused of corruption and was forced to resign. That would be it - out of a job and no compensation. But,United filed a report with the Securities and Exchange Commission on Tuesday indicating that Mr. Smisek would receive nearly $4.9 million in a separation payment, and 60,000 shares of stock, valued at over $3 million.
Some more local examples of a contrast in power among wealthy and powerful compared to low income and powerless:
Choose one of the examples above. Which did you choose and what is the power being exerted?
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