Chapter 10 The Haves and Have-Nots

The Global Context: Poverty and Economic Inequality around the World

Sociological Theories of Economic Inequality and Poverty

Problems of Work and Unemployment Strategies for Action: Antipoverty Programs

and Policies

International Measures of Poverty

World Bank: “poverty threshold” of $1 a day to compare poverty in the the developing world.

World Health Organization: household is considered poor if it cannot meet 80% of calorie requirements using 80% of its income to buy food

Human Poverty Index (HPI)

Based on three measures of deprivation:

1. Deprivation of life.

2. Deprivation of knowledge.

3. Deprivation in living standards.

U. S. Measures of Poverty

Varies by number in family and age of head of household. 1999 U.S. poverty line:

1 person (under age 65) = $8,480 2 people (no children) = $10,915 3 persons (2 adults, 1 child) = $13,120 4 persons (couple with 2 children) = $16,530

Global Poverty

World Bank estimates that one-quarter of world’s population lives in dire poverty.

1/3 of population in developing countries lives on less than $1 a day.

South Asia has most poor people; sub-Saharan Africa has highest proportion of people in poverty.

Income Inequality

1999: Combined wealth of the world’s 200 richest

people was $1 trillion. Combined incomes of 582 million people in the

least developed countries was $146 billion. 2000: Average income of the 20 richest

countries was 37 times that of the 20 poorest. 

Structural-Functionalist Perspective

Poverty and economic inequality serve positive functions for society:

Low-paid, poor workers are willing to do dirty, dangerous, difficult work others refuse to do

Poverty provides work for those in “poverty industry” (e.g. welfare workers).

Poor people provide market for inferior goods.

Criticisms of Structural-Functionalist Perspective

Many important roles (e.g. child care worker) are poorly paid, whereas those in nonessential roles (sports stars) earn high incomes.

Ignores the role of inheritance in the distribution of rewards. 

Conflict Perspective

Economic inequality results from bourgeoisie exploiting proletariat.

Corporations and the wealthy buy political influence.

Free-market reform policies benefit wealthy corporations and investors, but increase poverty.

Symbolic Interactionist Perspective

Persons who are labeled “poor” are stigmatized as lazy; irresponsible; lacking in motivation, ability, and morals.

Wealthy persons are viewed as capable, hard working, motivated, deserving of wealth.

Economic Inequality in the U.S.

1979-1999: Income of top 20% of U.S. population grew

26%. Income of the poorest decreased by 9%.

Education and Poverty

Education % Living in Poverty

No high school diploma 23.4

High school diploma 10.1

Some college 6.5%

Bachelor’s degree or more

3.0

Gender and Poverty

Minority women and single mothers have increased risk of poverty.

Women are less likely than men to attain higher educational degrees.

Women are concentrated in low-paying jobs, and earn less than men who have the same education.

Family Structure and Poverty

1999 poverty rate of U.S. married couple families: 4.8%

1999 poverty rate of U.S. female-headed families: 27.8%

1999 poverty rate of male householder: 11.7%

Causes of Poverty Among Minorities

1. Past and present discrimination.

2. Loss of manufacturing jobs from inner city.

3. Minorities more likely to live in female-headed households with no spouse.

Educational Problems and Poverty

Children from poor families score lower on tests of cognitive skill.

Poor children often go to inferior schools. Poor parents have fewer resources to provide

educational experiences for their children.

Housing Problems and Homelessness

Many poor people live without heating, air conditioning, sewer, and phones.

The poor are more likely to live in high-crime neighborhoods.

In U.S., 730,000 men, women, and children are homeless on a given day.

Childcare

Cost of childcare for a 4-year-old ranges between $4,000 and $6,000 per year.

Cost of childcare for a 4-year-old in an urban area is $10,000 or more per year.

Nearly 7 million children are left home alone each week.

Welfare Myths and Realities

Myth: people receiving welfare are lazy.

 Realities: Single parents do the work of parenting. Many adults on public assistance are

employed or looking for work. Some welfare recipients are unable to work

because of disabilities.

Welfare Myths and Realities

Myth: welfare benefits are granted to people who are not eligible to receive them.

Reality: At least 12 million people are not receiving

food stamps even though they are eligible.

Welfare Myths and Realities

Myth: most welfare mothers have many children. Reality:

Mothers receiving welfare have no more children, on average, than mothers in general population.

Welfare Myths and Realities

Myth: public assistance to the poor creates an enormous burden on taxpayers.

Reality: The U.S. Government spends $60 billion each

year on tax subsidies to businesses, significantly more than it spends on welfare benefits.

Genetically Modified Organisms

Benefits: Have potential to alleviate poverty, hunger and

malnutrition. Reduce pesticide use - some are designed to

repel insects without pesticides. Less deforestation - designed to grow on soil

otherwise unusable.

Genetically Modified Organisms

Risks: Food allergens. Possible toxicity, antibiotic resistance buildup,

and decreased nutritional value. Potential threat to biodiversity posed by the

uniformity of GM crops.