Transcript Stratification

+
Please Note:
 These
slides are meant
to help students think
about the material. They
are not meant to replace
reading the material or
taking notes. Using
these slides as your only
means of garnering
information could harm
your ability to
understand the content
of this class.
•
Please turn off cell
phones, MP3 players and
other technology of
which I’m unaware.
+
What is Stratification?

The way political power, wealth, income, health and other
opportunities are disparately organized.
+
Examples of Strat.
 1)






Global Priorities
Basic education for everyone in the world would cost 6
billion dollars more than what we presently spend.
Water sanitation for everyone in the world would cost 9
billion dollars more.
Basic health and nutrition for everyone in the world
would cost 13 billion dollars more.
Ice cream sales in Europe is 11 billion dollars
Pet foods in U.S. and Europe costs 17 billion dollars
Military spending in the world is 780 billion
+
Examples of Strat
 2)Global
 A)
Stratification
Number of children in the world is 2.2 billion
but the number of children in poverty is 1 billion.
 B) 10% of the worlds population controlled 54%
of the worlds’ income in 2008 and 40%
owned 5% of the worlds’ income.
 C) 20% of the population in developed
nations consume 86% of the worlds goods.
 D) U.S. citizens consume 25% of worlds’ oil
and is responsible for 25% of all carbon
dioxide emissions (but is 4% of the world’s
population).
+ Examples of Global Strat. Continued…
Difference in wealth between richest and poorest countries:

1820: 3 to 1

1913: 11 to 1

1950: 35 to 1

1973: 35 to 1

1992: 72 to 1

2008: 100 to1
United Nations determined in 1998 that if 20 wealthiest
people in the world gave 40% of their wealth away, there
would be no more poverty.
+
U.S. Stratification
 3)
Income and Wealth Gap in U.S.
 U.S. has

.
largest gap between rich and poor.
+
Average CEO Pay
+
Stratification

1) How would you measure the well-being of Society?

2) Government defines well-being with two measures:

GNP– “is the total value of all final goods and services
produced by a country's factors of production and sold on the
market in a given time period. For example, because MercedesBenz is owned by Germans, its profits from its Belgian activities
would count towards German GNP, but because the activities
take place in Belgium it would count toward Belgian GDP. A Brit
working in Paris would have her income count toward UK GNP
but her output would be part of French GDP” (wikipedia).

Unemployment – Number of people in a population actively
looking for employment.
+
GDP as Institutionalized
 GDP
NOT easy to measure!

Product Approach: businesses fill out surveys of value added outputs (outputs
minus inputs).

Expenditure Approach: GDP (Y) is a sum of Consumption (C), Investment (I), Government

Income Approach:
Spending (G) and Net Exports (X - M).
GDP = COE + GOS + GMI + TP & M - SP & M
Compensation of employees (COE) measures the total remuneration to employees for work
done. It includes wages and salaries, as well as employer contributions to social security
and other such programs.
Gross operating surplus (GOS) is the surplus due to owners of incorporated businesses.
Often called profits, although only a subset of total costs are subtracted from gross
output to calculate GOS.
Gross mixed income (GMI) is the same measure as GOS, but for unincorporated
businesses. This often includes most small businesses.






This American Life: 1/3/10….44: 02 to 46:46
WATCH: http://www.npr.org/blogs/money/2011/10/26/141741360/video-what-is-gdp
+
Standard of Living vs Quality
of Life

Economic well being of macro (society as a whole)

Versus

Overall sense of well being of micro (sum of individuals)
+ Quality of Life: Variables
What makes you happy?

Health/physical comfort

Family relationships

Political stability

Security

Choices/opportunities (equality)

Fulfilling work

Spiritual fulfillment

Community support/involvement

Environment (climate)
United Nations “Quality of Life Index”
life expectancy, literacy, school enrollment and per capita gross domestic product in 182
countries
.
Very high Human Development
Norway
Australia
Iceland
Canada
Ireland
Netherlands
Sweden
France
Switzerland
Japan
Luxembourg
Finland
United States
Austria
Spain
Denmark
Belgium
Italy
Liechtenstein
New Zealand
United Kingdom
Germany
Singapore
Hong Kong, China (SAR)
Greece
Low Human Development
Togo
Malawi
Benin
Timor-Leste
Côte d'Ivoire
Zambia
Eritrea
Senegal
Rwanda
Gambia
Liberia
Guinea
Ethiopia
Mozambique
Guinea-Bissau
Burundi
Chad
Congo (Democratic Republic of the)
Burkina Faso
Mali
Central African Republic
Sierra Leone
Afghanistan
Niger
Why Norway ?
1)Universal health-care,
2)Subsidized higher education and job
re-training
3)Comprehensive social security
system (1-3 World Economic Forum).
4)Most peaceful country in the world (
Global Peace Index)
5)The world's most democratic country
(Democracy Index).
6)The world’s most gender equitable
country (World economic forum)
7)Accessible bike trails and public
transportation.
8)Subsidized Childcare
+
Stratification

3) Other measures of Well-being:

Genuine Progress Indicator:

http://www.rprogress.org/newprograms/sustIndi/gpi/index.
shtml
+
Stratification

4) How does Capitalism Contribute to
Stratification?
Structural Inequality
Building Poverty into the Economic System.
Structural unemployment, unlivable wages,
poverty, etc.
B) Why is U.S. Capitalism more stratified than other
capitalist countries?
Theoretically, stratification is fair if you have:
Equal opportunity: Free competition and free
information.
A)
Practically, US is less likely to provide equal
opportunity than any other industrialized nation in the
world.
+
Stratification
Supply Side Economics: Social policy that favors businesses.
Trickle Down Theory
Trade Agreements (What is free trade?)
Tax Policy (Transfer pricing? Capital Gains?)
Minimum Wage instead of Living Wage)
Bailouts,
Subsidies
+
When Is Stratification Justified?

In capitalism, how do we justify giving some people more
than others?

Think of the IDEOLOGY that justifies this?

In which ways is this ideology contradicted by rules and
other ideologies?
+
Meritocracy?

What is it?

Schooling in Capitalist America?