Income Inequality Sociology

In terms of federal poverty measure there are two different versions; one is poverty thresholds and the other is poverty guidelines. Poverty thresholds are a version of the federal poverty measure, developed by Mollie Orshansky in the 1960’s, which is the official measure of poverty that was based off of the cheapest food plan for a family (Schiller). In 1955, studies reflected that poor families spent about one-third of their income on food; so multiplying a low-cost food budget by three determined how much income a family needed (Schiller). Poverty thresholds are mainly used to calculate the number of poor Americans and other poverty population figures (lecture). Since then the threshold has only been adjusted for inflation and is an absolute threshold that considers a family poor if its pre-tax cash income falls below the poverty threshold (lecture). Since the food plan was only supposed to be used temporarily or for emergencies, it is clear it needs some updating. Poverty guidelines are used to determine program eligibility and are considered a simplified version of the poverty threshold (lecture).

In Income Inequality: Too Big to Ignore, Robert H. Frank paints a picture to the reader about the struggles of pier pressure. For example: an upper-classmen chooses to buy a big house and fancy clothing. This acts as a “frame of reference” to the changes and norms of the society. If he spends money on something nice, a middle-classmen will then go and decide to do the same thing, and then a lower-classmen…all the way down the social hierarchy. This is what he calls an “expenditure cascade.” Robert relates this with a person’s downfalls, which can be traced due to lower income inequality. Income inequality basically means that in a given quantity, the dispersion of income is underlined by the gap between individuals and or households with

The issue of income inequality in the United States is complicated and does not have a definite answer. Income inequality can be measured in a few different ways. The first measurement for the income inequality in a country is to look at the percentages on households and group them into income categories, called distribution by income category. The second measurement for income inequality is called distribution by quintiles or fifths. This is when you divide the total number of people, households, families into five groups called quintiles to examine the percentage of total before tax income received by each quintile. Each quintile would then be ordered by income and households in the category.

Income Inequality is a major problem that has been going on in America for decades. Many people feel that it barely exists today, but those people are very uneducated and don’t really care about the huge problem in front of them the many people that feel that way are highly uneducated, and seem to not really care about which has been gradually increasing instead of decreasing. Unfortunately, there’s not much that can be done, only of course if the poor class of people decide to actually educate themselves and get a higher education. One says poor class, simply because that’s how they’re classified. There are five types of levels that Americans are classified as, and they are: Upper Class, Upper Middle Class, Middle Class, Working Class, Poor. The highest percentage of Americans fall in the Poor department, and it has been that way for decades, and will continue to be that way for decades to come.

The Census Bureau uses a set of money income thresholds that vary by family size and composition to determine who is in poverty. If the total income for a family or unrelated individual falls below the relevant poverty threshold, then the family (and every individual in it) or unrelated individual is considered in poverty(“Definitions Poverty”). The United States Census Bureau collects data about the United States and reports it for the general public, these include the poverty levels in the United States. Baker states “The United States stands out for its failure to significantly reduce child poverty over the past few decades and its unusually high child poverty rates relative to other rich countries” (1166). If the United States is one of the top richest countries, why does the child poverty rate continue to increase?Marriage and work have been persistent in debates about poverty, research has shown that both marriage and work have changed drastically in recent

In any given population, there is a difference between what people within the population earn. The uneven distribution of income in any given population is income inequality. In order for there to be income, there has to be several sources of income. These sources of income may be combinational or independent per person receiving the income. Income may result from wages, rent, bank account interests, salaries or even profits made in business transactions ( Stiglitz, 2012).

Poverty is not only an individual problem, but a societal problem. Harrell R. Rodgers wrote an article, “Why are People Poor in America?” Rodgers gives two categories of theories that are used when cultural /behavioral or structural/economic. Behavior/culture theorists look at the behavior, culture and values of the poor as the reason for poverty. While structural /ecIn western culture statistics are an excessively used tool in describing social issues. Numbers help explain a situation, but in excesses, can dehumanize a population. A serious social issue that suffers from desensitization is poverty. Poverty, as it is defined by Webster, is the state or condition of having little or no money, goods, or means of supporting; the condition of being poor. The condition of poverty plagues many American families. According to the Census bureau, 15.1 percent of the United States population falls below the poverty threshold. 15.1 percent does not draw the same effect as the actual 46.6 million individuals living in those circumstances. In the United States, poverty has become a growing problem. There are 15 million more people living in poverty today than in the year 2000 (U.S. Bureau of the Census 2013). The poverty threshold, developed by Molly Orshansky, is a tool used to help indicate how many Americans are in poverty. According to the census, 46.6 million of America’s total population makes less than the poverty threshold for a family of four. The condition of being

“Poverty is about not having enough money to meet basic needs including food, clothing and shelter” (“What is Poverty,” 2016). In the United States, there are 45 million Americans are living in poverty (“45 Million Americans,” 2014). In order to determine if one is living in poverty, the United States Census Bureau has established a poverty line that they then measure, according to the individual’s income and their family size (“Poverty Thresholds,” 2016; “Poorest Cities in America,” 2016). Since the recession in 2008, many states have seen a rise of families living in poverty. Poverty is a vicious cycle and has devastating effects on young children.

Inequality is not favorable in society. There is inequality in many aspects of our society, such as race, and gender. The main inequality we look at is income inequality in the United States. The one percent of the population control a vast majority of the United States currency. The Gini coefficient has been increasing ever since the Industrial Revolution, a period where education, manufacturing, and economics has shown growth. However, income inequality has increased in the Industrial Revolution. There are many events, and causes that have led to the rise of income equality in the United States.

However, this system of measuring poverty is flawed because if a family makes a dollar more above the set limit, they do not qualify for financial help from the government (NCCP, 2008).The poverty threshold is an inadequate measure of whether people are considered poor or not. Current poverty measures are flawed because it assumes how much a family spends and does not accurately include family resources such as Earned Income Tax Credit (NCCP, 2008). The way that the government measures poverty is based on outdated information that was set in the 60s. Because it has not been sufficient to keep up with the standard of living, those who are living in “high cost cities like New York and those who live in rural areas of the country” (NCCP, 2008) are barely getting by.

In the United States, income poverty is defined by the poverty threshold, developed in 1959 and based on expected food expenditures (thrifty food basket) for families of varying sizes. Each year the threshold is adjusted for the Consumer

Income inequality has been a major issue in American history. There are many different factors that contribute to inequality. These include education, wealth, discrimination, ability, and monopoly power.

This definition can be used throughout the world to define absolute poverty because basic needs are the same for all humans. A fixed income is often used to define absolute poverty throughout the world; living on less than $1-2 per day (Palmer, G, 2010). The difficulty with this figure is that in richer countries it will still be impossible to obtain the basic needs on that amount of money whereas in poorer countries it may be possible to live on such a low sum, albeit with great difficulty. This illustrates the problem that placing a figure of money to define poverty creates and shows why the different term, relative poverty, is often used.

In 2010, about 46.2 million people were considered poor. The nation’s poverty rate rose to 15.1 percent, whereas in 2009, 14.3 percent of people in America were living in poverty (Censky, 2011). That is an increase of 2.6 million people in 2010. In the United States, the federal poverty line – an absolute measure of annual income – is frequently used to determine who is categorized as poor (Ferris & Stein, 2008, 2010). Currently the government defines the poverty line as an income of $11,139 for an individual and $22,314 for a family of four (Censky, 2011). In sociology, poverty can be defined using two terms – relative deprivation and absolute deprivation. Relative deprivation is a comparison between people and social class. With

Poverty has been on a incline since the economic downturn in 2007. Poverty is defined as “the state of being inferior in quality or insufficient in amount”, but a more modern definition used today is “in state of being extremely poor”. According to “Poverty in the United States” a report done by Congressional Digest, the poverty line in 2012 was 15.0 percent, which represents 46.5 million people living at or below the poverty line, and was 2.7 points higher in this year than in 2007. The article also stated that in 2012, the family poverty rate and the number of families in poverty was 11.8 percent and 9.5 million and the median income for households was $51,017, which means many of these households have students who become eligible for free lunches. In Lindsey Layton’s article “Most Public