Social Class & Poverty in the US: Crash Course Sociology #24

Summary

This script from 'Crash Course Sociology' delves into the complexities of defining social class in America. It outlines five distinct social classes: upper class, upper middle class, average middle class, working class, and lower class, each with unique characteristics and challenges. The video explores income ranges, educational attainment, and the impact of economic conditions on these classes. It also addresses the nuances of poverty, including the federal poverty level and the 'working poor,' emphasizing the need to consider broader economic and social structures to understand poverty fully.

Takeaways

• 🤔 Social class in America is complex and difficult to define, with various perspectives influencing its classification.
• 🏭 According to Marx, society is divided into the bourgeoisie, who own the means of production, and the proletariat, who perform the labor.
• 🛠 Marx's model may oversimplify modern society, as it doesn't account for nuances like small business owners who also work in their businesses.
• 👔 Max Weber's definition focuses on the opportunities and resources available to individuals based on their social class, such as income, education, and prestige.
• 🏢 The American social class system is typically divided into five classes: upper class, upper middle class, average middle class, working class, and lower class.
• 💼 The upper class, or capitalists, hold significant wealth and power, with annual earnings of at least $250,000 and control over much of the country's wealth.
• 💰 Within the upper class, there's a distinction between 'old money' (inherited wealth) and 'new money' (self-made wealth).
• 👨‍👩‍👧‍👦 The middle class is further divided into upper middle, average middle, and lower middle classes, each with different income ranges and educational levels.
• 🏡 The average middle class typically earns between $50,000 and $115,000, and about half of this group has a college education.
• 🔧 The working class, or lower middle class, is characterized by manual labor jobs and includes those who may be more susceptible to economic downturns.
• 🏭 The lower class consists of blue-collar workers with annual incomes below $25,000, often working part-time jobs without benefits, and are more likely to live in impoverished areas.

Q & A

What are the challenges in defining social class according to sociologists?

Sociologists face challenges in defining social class because there isn't a single definition that fits all societies, and the definition used depends on the society being studied.

How does Marx's definition of social class categorize people?

Marx's definition categorizes people into two classes: the bourgeoisie, who own the means of production, and the proletariat, who perform the labor.

What is the issue with applying Marx's definition to modern society?

Marx's definition might be too simplistic for modern society as it doesn't account for nuances such as small business owners who work in their own businesses and blur the line between bourgeoisie and proletariat.

What alternative definition of social class does Max Weber propose?

Max Weber's definition focuses on the opportunities a person's class provides, considering income, education, power, and prestige as factors that define social class.

How many social classes are there in the United States according to the script?

There are five social classes in the United States: upper class, upper middle class, average middle class, working class, and lower class.

What are the characteristics of the upper class in the United States?

The upper class consists of capitalists, earning at least $250,000/year, and controlling much of the country's wealth, wielding significant political and social power.

How is the upper class further divided within itself?

The upper class is divided into sub-classes of old money (upper-upper class) and new money, with old money deriving wealth from inheritance and new money from work.

What is the income range for the upper middle class in the United States?

The upper middle class typically has incomes between $115,000 and $250,000 per year.

What distinguishes the working class from other social classes?

The working class is distinguished by jobs that involve manual labor, such as factory work, construction, and manufacturing, and they are sensitive to economic downturns.

What is the federal poverty level for a family of four as of 2017?

The federal poverty level for a family of four as of 2017 is $24,600.

How does the script describe the feminization of poverty?

The feminization of poverty refers to higher rates of poverty among women, often linked to single mothers raising children on their own and working low-wage jobs.

Outlines

00:00

🏛 Understanding Social Class in America

This paragraph discusses the complexity of defining social class in America, acknowledging the difficulty in categorizing individuals based on wealth, power, and prestige. It contrasts Marx's simplistic class division of bourgeoisie and proletariat with Max Weber's approach, which focuses on the opportunities afforded by one's class. The paragraph introduces a five-tiered social class system prevalent in the United States: upper class, upper middle class, average middle class, working class, and lower class. It describes the upper class as the wealthiest, with significant political and social influence, and distinguishes between 'old money' and 'new money' within this group. The middle class is further divided into upper middle class, average middle class, and lower middle class, each with distinct income ranges, educational backgrounds, and job types. The working class is characterized by manual labor jobs, while the lower class includes those living in poverty, often in part-time or unstable employment.

05:01

📚 Education and Poverty in the United States

The second paragraph delves into the educational prospects and poverty rates among different social classes, emphasizing the stark differences in opportunities for children from upper-middle-class families versus those from the bottom income quartile. It outlines the federal poverty level as a benchmark for public assistance eligibility and notes that 13.5% of Americans live below this threshold. The paragraph explains the concept of relative poverty, which compares the lack of resources to those who are better off, and absolute poverty, which threatens survival. It highlights the vulnerability of certain groups, such as children, the severely disabled, and the frail elderly, to poverty. The discussion also includes the 'working poor,' individuals who work full-time but still fall below the poverty line, often due to low wages. The federal minimum wage is cited as an example, showing that full-time work at this wage still results in an income below the poverty threshold for a family. The paragraph concludes with a look at the feminization of poverty and the racial disparities in poverty rates, noting that while most poor Americans are white, Black Americans have a higher likelihood of being poor due to institutional barriers and economic challenges.

Keywords

💡Social Class

Social class refers to a group of people who share similar socio-economic status, typically defined by income, education, occupation, and wealth. In the context of the video, social class is a central theme as it discusses the various layers within American society, from the upper class to the lower class, and how these classes differ in terms of power, wealth, and opportunities. The video script uses social class to frame discussions about economic disparity and the lived experiences of individuals within different economic brackets.

💡Bourgeoisie

The bourgeoisie, as defined by Karl Marx, are the class of capitalists who own the means of production and employ labor. In the video, the bourgeoisie is contrasted with the proletariat, highlighting the traditional Marxist view of class divisions. The script mentions that under Marx's definition, even a small store owner would be considered part of the bourgeoisie because they own a business and hire workers, despite potentially having a lifestyle more akin to that of a retail employee.

💡Proletariat

The proletariat, in Marxist theory, are the working class who sell their labor to the bourgeoisie in exchange for wages. The video discusses the proletariat in the context of class definitions, questioning where certain individuals, such as small business owners, fit within this framework. It challenges the simplicity of this classification by illustrating the complexities of modern economic structures.

💡Max Weber

Max Weber was a sociologist who introduced a more nuanced view of social class, focusing on life chances and opportunities afforded by one's class. The video references Weber's theories to discuss how different classes have varying access to resources and opportunities, which is crucial for understanding the American social class system. Weber's approach allows for a broader understanding that includes not just wealth but also education, power, and prestige.

💡Upper Class

The upper class, as described in the video, consists of individuals at the top of the income and wealth distribution, earning at least $250,000 per year and controlling a significant portion of the country's wealth. This class wields considerable political and social power. The video further divides this class into 'old money' and 'new money' sub-classes, illustrating the diversity within the upper class and how wealth origin can influence social status.

💡Middle Class

The middle class is a broad socio-economic group that falls between the working class and the upper class. The video script discusses the middle class in the context of American society, noting the common perception that most Americans identify as middle class. Sociologists, however, break this group into upper middle class, average middle class, and lower middle class to reflect the diversity in income, education, and lifestyle within this broad category.

💡Working Class

The working class, as mentioned in the video, is characterized by blue-collar jobs and manual labor. This class is sensitive to economic downturns and typically does not require a college education for employment. The video highlights the working class's vulnerability during economic recessions and the types of jobs that fall under this category, such as factory work and construction.

💡Lower Class

The lower class, according to the video, comprises individuals at the bottom of the income distribution, earning less than $25,000 a year, and often working in part-time, low-wage jobs with no benefits. This class is more likely to live in impoverished neighborhoods with limited access to quality education and higher rates of crime. The video emphasizes the challenges faced by this group, including the difficulty of escaping poverty and the impact of living conditions on future generations.

💡Poverty

Poverty in the video is discussed as a complex social issue affecting a significant portion of the American population. It is defined relative to the federal poverty level, which is an income benchmark used to determine eligibility for public assistance. The video explains how poverty is not only about the lack of income but also about the lack of resources and opportunities that can lead to a cycle of deprivation. It also touches on the feminization of poverty and the racial disparities in poverty rates.

💡Federal Poverty Level

The federal poverty level is a government-established income threshold that helps determine who qualifies for public assistance programs. As mentioned in the video, it is a measure of relative poverty, indicating how one's income compares to others within the United States. The video uses the federal poverty level to discuss the economic vulnerability of certain groups and to examine trends in poverty.

💡Cultural Factors

Cultural factors refer to the attitudes, beliefs, and behaviors that are shared within a group and can influence social outcomes. The video contrasts two perspectives on poverty: one that attributes it to individual or cultural failings, as suggested by Daniel Patrick Moynihan, and another that emphasizes structural barriers and systemic racism, as argued by William Julius Wilson. The video uses this discussion to highlight the complexity of understanding and addressing poverty.

Highlights

Social class in America is complex and multifaceted, with definitions varying based on societal context.

Marx's definition of social class is too simplistic for modern society, as it only includes the bourgeoisie and proletariat.

Max Weber's definition focuses on the opportunities and resources available to individuals based on their social class.

Social class can be defined by similarities in income, education, power, and prestige within a group.

American society is broadly divided into five social classes: upper class, upper middle class, average middle class, working class, and lower class.

The upper class includes the wealthiest individuals who earn at least $250,000/year and control significant wealth and power.

The upper class is further divided into 'old money' and 'new money' subclasses.

The upper middle class typically earns between $115,000 and $250,000/year and comprises about 15% of income earners.

Average middle-class families have incomes ranging from $50,000 to $115,000 and make up about 35% of income earners.

The working class, or lower-middle class, includes blue-collar workers with incomes from about $25,000 to $50,000/year.

The lower class consists of those earning less than $25,000/year, often working part-time jobs with no benefits.

The federal poverty level serves as a benchmark to determine eligibility for public assistance programs.

Relative poverty in the US is measured against a standard of living, not an absolute lack of resources.

The working poor are those who work full-time but still live below the poverty line.

The feminization of poverty refers to the higher rates of poverty among women, often single mothers working low-wage jobs.

While most poor Americans are white, Black Americans are disproportionately likely to be poor due to institutional barriers.

Understanding poverty requires examining economic, social structures, and the history of racism in the US.

Transcripts

Social Class in America can be hard to talk about.

And not just because you may find it awkward to discuss who’s poor and who’s rich, or who has more power and who has less.

As sociologists, the difficulty for us is in pinning down exactly what we mean by social class.

There isn’t just one definition of it, and the definition you use will depend on what society you’re interested in.

If we go by Marx’s definition, we have two classes: the bourgeoisie, who own the means of production, and the proletariat, who do the labor.

But this might be too simplistic for our world.

If you own a small store, and you work there, which category do you belong in?

Your day-to-day life probably looks more like that of a retail employee than that of a CEO.

But Marx would put you in the bourgeoisie, because you own a business and hire workers.

So let’s try another definition, one that’s more in the tradition of our old friend Max Weber.

His theories were more about what kinds of opportunities a person’s class gives them.

The owner of a big company has different opportunities than the owner of a small shop.

But they’ll both have different resources available to them than someone who manages an office, or somebody who works at a factory.

So in this case, a social class can be defined as a group that’s fairly similar in terms of income, education, power, and prestige in society.

And we can use this definition to better understand the social classes that make up society in the United States,

and it can help us to answer some of the questions they raise.

Like, is there more than one kind of upper class?

How can the middle class fit everyone who thinks they belong in it?

And what does poverty in America really look like?

[Theme Music]

Broadly speaking, American society can be split into five social classes:

upper class, upper middle class, average middle class, working class, and lower class

The upper class consists essentially of the capitalists in Marx’s system.

This is the top of the income and wealth distribution – those who earn at least $250,000/year and control much of the country’s wealth.

And as we learned last week – money talks.

This group tends to wield a lot of political and social power.

But within the upper class, there are sub classes that distinguish, by and large, between old money and new money.

The upper-upper class includes those who derive their wealth from inheritance rather than work.

People in this class may have jobs, but usually they take on more honorary positions such as board members or heading up philanthropic organizations.

But there’s also a large part of the upper class whose wealth came from work.

Most of those we think of as wealthy – the Bill Gates, Oprah Winfreys, and Kanye West’s of the world – fall into this group.

After upper class comes the middle class.

Remember awhile back when we talked about how almost every American thinks that they’re middle class?

That’s way too many people to fit into the middle, which is why sociologists split the mid-range of the income distribution into three groups.

Upper middle class families typically have incomes between $115,000 and $250,000 per year and make up about 15% of income earners.

About 2/3 of the adults here have college degrees – and many have post-graduate degrees.

It’s almost a given that their kids will attend college when they grow up.

Adults in this sector tend to have jobs that are considered prestigious – doctors, lawyers, engineers, and the like.

Their families typically own homes in good school districts, and are able to afford luxuries, like travel and multiple vehicles.

And it may not surprise you to learn that they’re wealthy, at least compared to most Americans.

This group is likely to have wealth from their home, strong 401Ks, and financial investments.

Now, families in the so-called average middle class make between $50,000 and $115,000 and make up about 35% of income earners.

Keep in mind, the median family income in the US is $70,700.

So families in this group still tend to own their own homes, but the mortgages might be more cumbersome.

And they have some wealth, usually tied up in their home or a modest retirement savings account.

About half of this group is college-educated, though they’re more likely to have attended public universities than private schools.

And average middle class jobs are typically so-called white collar jobs – think office workers, teachers, middle-managers.

In contrast, most blue-collar workers, or those whose work is primarily based in manual labor, fall into the lower-middle class.

About 30 percent of Americans are in this category, with incomes ranging from about 25 to 50 thousand dollars a year.

Lower middle class families are less likely to own their own homes and typically hold little to no wealth.

The most defining feature of this social class is the type of jobs that are associated with it –

namely, manual labor, which is why it’s often referred to as the working class.

Factory work, construction, manufacturing, maintenance work – all of these jobs generally fall under working class occupations.

And while some working class jobs require technical skills, they don’t usually require a college education.

It’s important to note that working class jobs are more sensitive to how the economy is doing, because these jobs tend to be built around making stuff.

When a recession hits, factories need fewer workers to meet demands.

Or the plant’s owners might decide that it’s cheaper to use machines rather than workers to produce their goods.

And just as vulnerable to economic downturns, if not more so, is the lower class.

Lower class Americans are blue-collar workers at the bottom of the income distribution.

They make less than $25,000 a year and tend to work hourly jobs that are part-time, with unpredictable schedules and no benefits, like health insurance or pensions.

About 20% of Americans, or the bottom quintile, fall into this group.

The majority of these families don’t own their own homes and are more likely to live in neighborhoods with higher rates of poverty,

lower quality school districts, and higher crime rates.

In contrast to an upper-middle class family, whose children are likely to go to college,

only 9% of children born in the bottom income quartile complete a four-year college degree.

And the lower class also includes many Americans who are living in poverty.

The US government sets an income benchmark called the federal poverty level,

a threshold that’s used, in part, to determine who’s eligible for public assistance programs, like food stamps or help with health care.

As of 2017, the federal poverty level for a family of four is $24,600.

And 13.5% of Americans live in households below that.

The government arrives at this figure by estimating the minimum annual pre-tax income that’s needed to pay food, shelter, transportation, and clothing costs for a given household size.

Of course, what’s poor in the United States won’t be the same as in another country

– the US federal poverty line is a measure of relative poverty, based on a standard of living in the US.

Relative poverty is used to describe a lack of resources compared to others who have more.

But absolute poverty is a lack of resources that threatens your ability to survive.

The federal poverty level gives us an indicator for which Americans have the fewest resources and lets us examine trends in groups that are the most economically vulnerable.

For example, groups that can’t work, like children, the severely disabled, and the frail elderly, are particularly vulnerable to poverty.

But many working Americans are vulnerable to poverty, too – 12% of working-age adults in poverty work full-time, and another 29% work part time.

These are the working poor.

You can see how it’s quite possible to work full time and still live in poverty, when you do the math.

The federal minimum wage in the United States is $7.25 per hour.

A 40 hour work week for 50 weeks a year would net an income of $14,500, which is well below the poverty line for a family of four.

It’s hard enough to pull yourself out of poverty on a low-wage income, which is partly why more than half of families in poverty are headed by single mothers.

Higher rates of poverty among women, known as the feminization of poverty,

is related to the increasing number of women who are raising children on their own, and who work low-wage jobs.

But in addition to gender, you can also can look at poverty by race.

Contrary to popular belief, most poor Americans are not Black; in fact, two-thirds of the poor in the US are white.

Black Americans are, however, more likely to be poor than white Americans:

24.1% of Black Americans, who make up about 13% of the total American population, were living in poverty in 2015.

Compare that to 11.6% of white Americans, who make up about 77% of the total population.

Now, the causes of poverty are many.

And it’s not easy to understand why some groups are more vulnerable than others.

America likes to think of itself as a nation that values self-reliance, where anyone can succeed.

And this view is partly why some argue that poverty is the result of an individual’s own failings, or of certain cultural attitudes.

One of the most famous proponents of this idea was Daniel Patrick Moynihan –

former US senator, ambassador to the United Nations, and, by trade, a sociologist.

A report he wrote while Secretary of Labor in the Kennedy administration, known as the Moynihan report,

blamed high rates of poverty among African Americans not on a lack of economic opportunity,

but on cultural factors in the Black community, like high rates of birth outside of marriage.

By contrast, American sociologist William Julius Wilson – who you might remember from episode 7 – has provided a counter to this idea.

Wilson has documented how Black Americans are much more likely to face institutional barriers to achieving economic success,

and are more likely to live in areas where jobs are scarce.

He argues that in order to understand poverty, we have to look at wider economic and social structures, as well as the history and culture of racism in the U.S.

Next week, we’ll talk more about how social class structures affects how Americans live their lives.

But for now, you learned about the five different social classes in the United States:

the upper class, the upper middle class, the average middle class, the working class, and the lower class.

And we discussed what poverty looks like in the United States.

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