Transcript 5. Income Inequalities and Social Class

Lesson Starter
What will I learn?
• Interpret evidence which shows that the UK is
a rich country and explain why wealth and
income are not shared out evenly.
• Explain why the process of social classification
of people is necessary.
• Describe at least two classifications that
social scientists use to categories different
people.
Success Criteria
I can…
• Interpret evidence which shows that the
UK is a rich country and explain why wealth
and income are not shared out evenly.
• Explain why the process of social
classification of people is necessary.
• Describe at least two classifications that
social scientists use to categories different
people.
Wealth inequalities in the UK
By any international comparison the UK
is a wealthy country. Whether
measured by GDP per capita (wealth
created per head) or GNP (total wealth
creation), the UK is among the top 20
richest countries in the world.
Richest People in the UK 2014
• According to a new survey by the Hurun
Global Rich List, 56 sterling billionaires
now live in Britain. Here are their names:
• 1. Leonard Blavatnik
Ukrainian-born American Blavatnik, 56, has
made his £10.8 billion fortune through
investments in oil, coal and property and is
the owner of Parlophone Records and the
Warner Music Group. He recently donated
£75m to found the Blavatnik School of
Government in Oxford.
Richest People in the UK 2014
2. Lakshmi Mittal
Mittal, 63, is the owner of a £10.2bn fortune. He
made it in the Indian steel business, and is now the
owner of the world's largest steel manufacturer.
His three properties in Kensington Palace Gardens
are believed to be worth £500m.
3. Srichand Hinduja and family
The Indian born magnate, 78, is the chairman of
the Hinduja group, and made his wealth in textiles,
Bollywood films, weapons and oil. His £300m home
near Buckingham Palace is believed to be the
world's third most expensive.
Richest People in the UK 2014
• 4. John Fredriksen
The Norwegian-born Cypriot shipping tycoon, 69,
is worth £6.9bn, and made his fortune in the IranIraq war of the 1980s. He owns the world's
largest shipping fleet.
• 5. Gerald Grosvenor
The 6th Duke of Westminster, 62, is the
wealthiest landowner in Britain. His £6.6bn
fortune is founded on his family's ownership of
190 acres of Belgravia, one of London's most
exclusive areas, and he also owns prime real estate
on five continents.
Richest People in the UK 2014
• 6. Hans Rausing
The 87-year-old is the co-inheritor of the Tetra
Pak fortune, and his wealth is estimated at
£6.6bn. He divides his time between Sweden, the
Bahamas and Britain, where he breeds deer and
wild boar on his sprawling estate.
• 7. Roman Abramovich
The Chelsea FC owner, 47, started out selling
plastic ducks on the streets of Moscow, and is now
worth £4.8bn. He made his fortune in the oil
industry in the 1990s, after the Soviet Union's
assets were stripped by private speculators. The
oligarch now has interests in steel and mining.
Richest People in the UK 2014
• 8. Bruno Schroder
With wealth estimated at £3.5bn, the 80-year-old
is the fourth generation in his family to run the
asset management firm Schroders.
• 9. Charles Cadogan
The 8th Earl of Cadogan, 76, heads a property
empire with addresses in some of London's most
affluent postcodes. His own home is worth £20m.
Richest People in the UK 2014
10. Sir Richard Branson
The British-born businessman and entrepreneur,
63, has a fortune estimated at £3.5bn. He set up
his first business, a mail order record company in
1970, and his Virgin Group now comprises more
than 400 companies. Branson lives on Caribbean
idyll Necker Island, in the British Virgin Islands, a
tax haven.
Is everyone rich in the UK?
• Although the UK is a wealthy country, this does
not mean that everyone in the UK is equally
wealthy.
• Watch this clip and note down some of the facts it
provides regarding distribution of wealth in the
UK.
• If you want to research this inequality further,
here is a web address:
• http://inequalitybriefing.org/
Income and Wealth in the UK
• Although the UK is a wealthy country, this does
not mean that everyone in the UK is equally
wealthy.
• The gender pay gap has widened for the first
time in five years, reversing a period of ''steady
progress'' on closing the wage difference
between men and women.
• The difference based on median hourly earnings
for full-time workers increased from 9.5% last
year to 10%, but for all employees, including
part-timers, the figure rose from 19.6% to
19.7%, said the Office for National Statistics
(ONS).
Income and Wealth in the UK
• In Britain today women still earn 15% less per
hour than men, a pay gap that costs full-time
women over £5,000 a year.
• The figures showed that median annual earnings
for full-time employees were £27,000 in the
year to April, an increase of 2.1% from the
previous year.
• A tenth of full-time workers earned less than
£7.28 an hour, while 10% earned more than £27
an hour, both figures increasing by 1.5% over the
year.
Income and Wealth in the UK
• Weekly pay was highest in London at £658, and
lowest in Northern Ireland at £460.
• Full-time pay for men increased by 1.8% to £556
a week and went up by 2.2% for women to £459.
• Median weekly pay for all workers, full and parttime, was £417, an increase of 2.6%.
Social Class – why classify people?
• Social classification is necessary in order to
measure trends and progress throughout society.
Researchers use the data collected, although
imprecise or disputed, to analyse changes in
income, employment, wealth, poverty and health
between different groups of people.
• This information can then be used by any
interested party to initiate a debate which may
then result in policies being put forward to
resolve problems. Without classification or
analysis of information, it would be very difficult
if not impossible to improve society.
Social Class Models
• Register General Classification (pre-2001
classification)
• Class A or I
Professional, Solicitor, HT
• Class B or II
Technical or middle lower
managerial, Superstore
manager
• Class C1 or III
Skilled Manual, Tradesman
• Class C2 or III
Skilled Non-manual
Computer operator
• Class D or IV
Semi-skilled, Technician
• Class E or V
Unskilled, Labourer, Driver
Social Class Models
National Statistics Socio-economic Classification
(Used since 2001 although there are other classifications)
• 1. Higher Managerial and Professional Occupations:
Large employers / higher managerial e.g. company
directors
•
- Higher professional occupations e.g. doctors,
lawyers
2. Lower Managerial and Professional Occupations: nurses,
journalists
3. Intermediate Occupations: clerks, secretaries
4. Small Employers and Own Account Workers: publicans,
farmers
Social Class Models
National Statistics Socio-economic Classification
(Used since 2001 although there are other classifications)
5. Lower Supervisory and Technical Occupations: printers,
plumbers
6. Semi-routine Occupations: shop assistants, hairdressers
7. Routine Occupations: couriers, labourer
8. Never Worked / Long-term Unemployed
Social Class Models
• Traditional British social divisions of upper,
middle and working class seem out of date in the
21st Century, no longer reflecting modern
occupations or lifestyles.
• As you will have seen, it seems strange that
some occupations qualify you for a higher social
class than others considering the money you can
earn for doing certain jobs.
• Therefore basing social class classifications on
occupation alone seems too simplistic.
Social Class Models
• The BBC teamed up with sociologists from
leading universities to analyse the modern
British class system. They surveyed more than
161,000 people and came up with a new model
made up of seven groups.
Social Class Models
• Britain's new social classes – 7 groups
1.Elite: Most privileged group, set apart from other classes
because of wealth. Highest scoring economically, socially
and culturally.
2.Established middle class: Largest class group and second
wealthiest. Also score high culturally and socially.
3.Technical middle class: Small distinct group that aren't so
social but have money and are into emerging culture such
as gaming, the internet and rock music.
4.New affluent workers: A young group, socially and
culturally active with middling levels of income.
5.Traditional working class: Score low economically, socially
and culturally but have reasonably high house values and
oldest average age.
Social Class Models
• 6. Emergent service workers: New young urban
group who don't have much money but are very
social and cultural. They "live for today“.
• 7. Precariat: Poorest, most deprived class who
score low economically, socially and culturally.
Why not try it?
• So where might your family members sit within
the class calculator categories?
• Here is the link. Why not get your parent/
guardian to try it?
• http://www.bbc.co.uk/news/magazine-22000973
REVISION QUESTIONS
• 1. What evidence is there that the UK is a rich
country and that wealth is not evenly distributed?
• 2. Why is social class classification necessary?
• 3. Summarise the main social class classification
models that you have learned about.
• 4. Why, in your opinion, is social class hard to
define?
Want to know more?
• If you want to know more about this section, go
online and access the article on Income Inequality
on Modernity Scotland.
• http://www.modernityscotland.co.uk/cfe-socialinequality/519-article-2
I can…
• Interpret evidence which shows that the UK is a
rich country and explain why wealth and income
are not shared out evenly.
• Explain why the process of social classification
of people is necessary.
• Describe at least two classifications that social
scientists use to categories different people.