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The most significant threat to the relatively high standard of living we’re accustomed to in the United States is the decline of the middle class. The size, income, and wealth of the middle class have all been declining since the 1970s. This is occurring at a time when corporate profits have increased more than 141 percent, and CEO pay has risen by more than 298 percent (Popken 2007).

G. William Domhoff, of the University of California at Santa Cruz, reports that “In 2010, the top 1% of households (the upper class) owned 35.4% of all privately held wealth, and the next 19% (the managerial, professional, and small business stratum) had 53.5%, which means that just 20% of the people owned a remarkable 89%, leaving only 11% of the wealth for the bottom 80% (wage and salary workers)” (Domhoff 2013).

While several economic factors can be improved in the United States (inequitable distribution of income and wealth, feminization of poverty, stagnant wages for most workers while executive pay and profits soar, declining middle class), we are fortunate that the poverty experienced here is most often relative poverty and not absolute poverty. Whereas absolute poverty is deprivation so severe that it puts survival in jeopardy, relative poverty is not having the means to live the lifestyle of the average person in your country.

As a wealthy developed country, the United States has the resources to provide the basic necessities to those in need through a series of federal and state social welfare programs. The best-known of these programs is likely the Supplemental Nutrition Assistance Program (SNAP), which is administered by the United States Department of Agriculture. (This used to be known as the food stamp program.)

The program began in the Great Depression, when unmarketable or surplus food was distributed to the hungry. It was not until 1961 that President John F. Kennedy initiated a food stamp pilot program. His successor Lyndon B. Johnson was instrumental in the passage of the Food Stamp Act in 1964. In 1965, more than 500,000 individuals received food assistance. In March 2008, on the precipice of the Great Recession, participation hovered around 28 million people. During the recession, that number escalated to more than 40 million (USDA).

Social classes in the united states

A young man with tattoos, a leather vest, and a spiky Mohawk haircut.
Does taste or fashion sense indicate class? Is there any way to tell if this young man comes from an upper-, middle-, or lower-class background? (Photo courtesy of Kelly Bailey/flickr)

Does a person’s appearance indicate class? Can you tell a man’s education level based on his clothing? Do you know a woman’s income by the car she drives?

For sociologists, categorizing class is a fluid science. Sociologists generally identify three levels of class in the United States: upper, middle, and lower class. Within each class, there are many subcategories. Wealth is the most significant way of distinguishing classes, because wealth can be transferred to one’s children and perpetuate the class structure. One economist, J.D. Foster, defines the 20 percent of U.S. citizens’ highest earners as “upper income,” and the lower 20 percent as “lower income.” The remaining 60 percent of the population make up the middle class. But by that distinction, annual household incomes for the middle class range between $25,000 and $100,000 (Mason and Sullivan 2010).

Questions & Answers

it is the relatively stable flow of income
Chidubem Reply
what is circular flow of income
Divine Reply
branches of macroeconomics
SHEDRACK Reply
what is Flexible exchang rate?
poudel Reply
is gdp a reliable measurement of wealth
Atega Reply
introduction to econometrics
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Tom
Why is unemployment rate never zero at full employment?
Priyanka Reply
bcoz of existence of frictional unemployment in our economy.
Umashankar
what is flexible exchang rate?
poudel
due to existence of the pple with disabilities
Abdulraufu
the demand of a good rises, causing the demand for another good to fall
Rushawn Reply
is it possible to leave every good at the same level
Joseph
I don't think so. because check it, if the demand for chicken increases, people will no longer consume fish like they used to causing a fall in the demand for fish
Anuolu
is not really possible to let the value of a goods to be same at the same time.....
Salome
Suppose the inflation rate is 6%, does it mean that all the goods you purchase will cost 6% more than previous year? Provide with reasoning.
Geetha Reply
Not necessarily. To measure the inflation rate economists normally use an averaged price index of a basket of certain goods. So if you purchase goods included in the basket, you will notice that you pay 6% more, otherwise not necessarily.
Waeth
discus major problems of macroeconomics
Alii Reply
what is the problem of macroeconomics
Yoal
Economic growth Stable prices and low unemployment
Ephraim
explain inflationcause and itis degre
Miresa Reply
what is inflation
Getu
increase in general price levels
WEETO
Good day How do I calculate this question: C= 100+5yd G= 2000 T= 2000 I(planned)=200. Suppose the actual output is 3000. What is the level of planned expenditures at this level of output?
Chisomo Reply
how to calculate actual output?
Chisomo
how to calculate the equilibrium income
Beshir
Criteria for determining money supply
Thapase Reply
who we can define macroeconomics in one line
Muhammad
Aggregate demand
Mohammed
C=k100 +9y and i=k50.calculate the equilibrium level of output
Mercy Reply
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money as unit of account means what?
Kalombe
A unit of account is something that can be used to value goods and services and make calculations
Jim
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Muhammad
I want to know how can we define macroeconomics in one line
Muhammad
it must be .9 or 0.9 no Mpc is greater than 1 Y=100+.9Y+50 Y-.9Y=150 0.1Y/0.1=150/0.1 Y=1500
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Kalombe
hi can someone help me on this question If a negative shocks shifts the IS curve to the left, what type of policy do you suggest so as to stabilize the level of output? discuss your answer using appropriate graph.
Galge Reply
if interest rate is increased this will will reduce the level of income shifting the curve to the left ◀️
Kalombe
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Source:  OpenStax, Introduction to sociology 2e. OpenStax CNX. Jan 20, 2016 Download for free at http://legacy.cnx.org/content/col11762/1.6
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