Comparing Race and Class as Contributing Factors of Social Mobility

Living or subsistence wage is amount of income needed to maintain basic standard of living. Theoretically, this wage should bring people out of poverty if implemented. The real take home wage for most workers are far below this ‘utopic’ living wage. Absence of living wage for most workers has been recognized as a contributing factor to the difficult task of upward social mobility with resultant diminishing equality of opportunity and relative poverty for most workers in this country today. The concept of working poor is born out of this dystopic social stratification. The threat this and other social determinant factors posed to the realization of the lofty goal of ‘American Dream’ are the subject of this paper.

In other words, America has a widening gap between its wealthy and poor. As the rich get richer and the poor get poorer, there is a problem emerging: the disappearance of the middle class. Low-wage workers continue to fall behind those who make higher wages, and this only widens the gap between the two. There has been an economic boom in the United States, which has made the country more prosperous than it has ever been. That prosperity does not reach all people; it seems to only favor the rich. Rising economic segregation has taken away many opportunities for the poor to rise in America today. The poor may find that the economic boom has increased their income; however, as their income increase so does the prices they must for their living expenses (Dreier, Mollenkopf, & Swanstrom 19).

The view that the rich get richer and the poor get poorer has been heard repeatedly in reference to America’s income inequality. Though ironic, it comes as no surprise that America, a continent that easily trumps other countries in terms of wealth would be affected by the issue of poverty at such high levels. While much has said regarding the poverty levels, many economists, educators and scholars feel that the income inequality in America may be the reason why it is difficult to live and maintain a middle class lifestyle or to rise out of poverty into the middle class in the current economic state. With this in mind, the only way America, has a chance of lessening or eliminating poverty altogether is by understanding how it exists.

From 1938-1969, in America was in a period called the great compression, a time where the difference between the richest and poorest Americans was very small and economic growth was explosive. Due to past and current economic policies and events, income inequality has exploded in America, which is why in 2015 America had the highest level of wealth inequality in the world at 80.56 gini[1] . In the future this inequality will slow down economic growth, increase debt for middle income Americans, make America less democratic, and reduce economic mobility. This problem, however, does have solutions and this paper will lay out some of the solutions and the effect they will have on the economy, but first I will explain the history of income inequality in the US.

Nowadays, the middle class is shrinking, while majority of people are either moving into the lower or upper classes. This is due to the major economic and policy changes that have occurred throughout the past thirty years. Based on the Basic Economy Security Tables, one in four full-time working-age adults are not earning enough income to meet economic needs for themselves or their families. This is a serious problem in America today, the fact that the median income today is six hundred dollars less than it was in 1989 is proof of this epidemic. It is much harder now, than ever, to work your way into the middle class, much less stay there. The percentage income growth since 1967 for the top 5 percent of earners is 88%, top 20 percent of earners grew 70%, and middle-income households only grew 20%. (Camp) In simpler terms, the upper classes income has increased tremendously, while middle-income households have seen very little growth in their income. Since the middle class is not receiving any income growth, it is declining and moving towards the lower class. It is not nearly as easy as it was thirty years ago to get a decent job and make

Americans today live in a distinctly unequal society. Inequality is now wider than it used to be in the last century, and the division in income, wages, and wealth are broader than they are in other developed economies of the world. Wealth inequality is the imbalance of wealth or income within a society, and it is one of the most vital economic challenge the US is facing today because the distribution of wealth is more dispersed, making the inequality in wealth distribution at its highest. While the matter has been discussed for many years, the actual income disparity in the U.S. has heightened and is now verging on an extreme gap that portends to impede long-term economic growth. The huge gap between the wealthy and poor is squeezing the U.S. economy, the wealth gap threatens economic growth by diminishing social mobility and producing a less-educated workforce who are not able to compete in the global economy. unrestrained level of income inequality causes political pressures, it discourages trade, investment, and hiring. The present level of income inequality in the U.S. is shrinking GDP growth, and the world's largest economy is struggling to recover from the Great Recession.

The United States, a place where anyone can “pick themselves up by the bootstraps” and realize the American dream of a comfortable lifestyle. Well, for over 30 million Americans this is no longer possible. Though we live in the richest and most powerful country in the world there are many who are living under or at the precipice of the poverty level, “While the United States has enjoyed unprecedented affluence, low-wage employees have been testing the American doctrine that hard work cures poverty” (The Working Poor, 4). This translates to families of four making around 18,850$ a year. And as soon as they find work or move just slightly above that 18,850$ a year (which is still a meager and deprived way to

Furthermore, the equality of opportunities as one of the foundations of the American dream turned into evident inequality. “The lion’s share of economic growth in American over the past thirty years has gone to a small, wealthy minority, to such an extent that it’s unclear whether the typical family has benefited at all from technological progress and the rising productivity it brings” (Krugman 586). Income inequality has been steadily growing since 2008 when the global financial crisis erupted. Moreover, the gap in prosperity between the group of Americans with high income and all the others had never been such extreme as it is now. Thus, not everyone has the opportunity to become wealthy through hard work. The increase in socioeconomic inequalities,

An Excerpt from a Paper for my University Writing Class, “Justice for All? How Race and Class Influence American Institutions”

The pay gap between college graduates and everyone that has not attended college has continuously increased, according to the new data, which is based on an analysis of Labor Department statistics by the Economic Policy Institute in Washington. (Web)This trend shows that people who went to college are paid more than people who didn’t. Our economy is becoming more technologically complex and people will need more education so getting a degree will help in the long

1. Describe the difference between race and ethnicity. What roles do race and social class continue to play in the United States?

This “middle-class nation” is struggling to support all those who live in its borders and the misconceptions about wealth are vastly overrated. Furthermore, the idea of wealth and stability is incorrect, and there is a very sharp contrast between the rich and poor in the country. As the richest twenty percent of American hold ninety percent of the total household of the total household wealth in the country, those at the bottom have managed very poorly and suffer to get through the days.

I believe social mobility has decreased in the U.S. To start off, the middle class is shrinking in the U.S. The current government is either declaring everyone with upper or lower class while trying to eliminate the middle class. In the current day it seems once your put in a class whether it be upper or lower a person is most likely to stay put in that class for a long time possibly the rest of their lives. Under the current regime the upper class are starting to get more breaks than the lower class with things such as lower taxes and better insurance policies. I feel like everyone has to take a career which will put them in the upper class or else they may be living an extremely difficult life in the lower class as they will get very

A major social problem in America today is its inequality of the distribution of income. "Income inequality refers to the gap between the rich and the poor. The United States has the most unequal income distribution in the industrialized world, and it is growing at a faster rate than any other industrialized country" (Eitzen & Leedham, pg. 37). The main reason as to why income is distributed so unequally is because of the gap between social classes.

She finds herself questioning, “Who, exactly, did I think was poor?” She concludes that she and most of the public find race and poverty are frequently equated to each other with no explanations as to why except for what they were brought up to believe. Her paper challenges her audience, the general public, to rethink the definition of poverty. McMillian brings to light that poverty should not be a point of racial contention but rather a common ground. As opposed to this, the second article finds race to be one of the factors that can contribute to poverty.