SOA 108 1st EditionExam # 2 Study Guide Lectures: 10-14Poverty and Economic InequalityDefinitions-Poverty: Lack of resources necessary for material well-being (food, water, shelter)-Absolute poverty: lack of resources that lead to hunger and physical deprivation (below the poverty line)-Relative poverty: Deficiency in material and economic resources compared with some other populationInternational measures of poverty-World Bank: uses “poverty threshold” of 1.25/day to compare poverty in a developing world-World Health Organization: Household is considered poor if it cannot meet 80% of calorie requirements using 80% of its income to buy food-Industrial countries: Use relative poverty measuresE.g. If income is less than 50% of median income in that country-U.S.: Official poverty index calculated by multiplying food cost by three; adjusted for inflation; varies by number of adults and children and by age of family head of household; based on pre-tax income-below poverty line is poor, above but not by much is near poor, 50% below poverty line is deep poor-Human Poverty Index (HPI): Based on three measures of deprivation 1. Deprivation of life2. Deprivation of knowledge/education3. Deprivation of decent standard of livingMerits and Demerits of Globalization- Merits of Globalization1. Open markets lead to economic growth, improving standard of living2. Imports are cheap, countries pay less for goods they do not produce. Everyone gainsgreater access to things they need.3. Globalization is the progressive and modernizing force that promises salvation from the world’s evils (poverty, disease, war)4. Efficiency through system of comparative advantage5. Free markets expand individual freedoms- Demerits of Globalization1. Expansion of capitalism is exploitative and driven by the greed of wealthy countries2. Threatens national development of periphery countries by creating labor intensive production in special economic enclaves that are sometimes subsidized by periphery states>leads to uneven development and enormous inequality3. Core countries have led periphery countries to borrow heavily (especially during economic crisis)>leads to crushing debt and punitive programs imposed by the International Monetary Fund that makes life hard for ordinary people4. Negative effects on the environment through industrial activities, technology, and consumerismSociological theories of Economic Inequality- Structural Functionalist Perspective- Poverty results from institutional breakdown- Economic inequality can be beneficial to society through providing people to do jobs nobody else wants to do, providing work for welfare workers, poor people create a market for inferior goods- Characteristics of culture of poverty1. Poor develop norms, values, and beliefs that contribute to their plight2. Female centered households-gratification in the present, lack of participation in social institutions, early sexual activity, unmarried parenthood, feeling of marginality3. Values transmitted from generation to generation4. Oscar Lewis originated this theory on the culture of poverty- Criticisms of culture of poverty1. The culture of poverty blames the poor2. Justifies policies that make poverty worse3. Confuses effect for cause4. Provides white middle class people with an easy narrative about why poor (blacks) are different- Conflict Perspective- Economic inequality results from exploitation of the proletariat by the bourgeoisie - Corporate inequality: the wealthy buy political influence- Wealthfare: policies and laws that favor the rich Ex: tax breaks benefit the wealthy- Corporate wealthfare: laws and policies that benefit corporations and the wealthy (child labor in underdeveloped countries, cheap labor from minorities and underdeveloped countries)- Welfare: statutory procedure or social effort designed to promote the basic physical and material well-being of people in need; financial aid- Free market reform policies benefit the wealthy and increase poverty- Symbolic Interactionist Perspective- Labels attached to rich: capable, hardworking, motivated, deserving- Labels attached to poor: lazy, irresponsible, lack of morals, lack ability, lack motivationEconomic Inequality- Inequality in the U.S.- Feminization of poverty1. Women more likely to live below poverty line2. Women less likely to pursue advanced degrees>work low paying jobs- Racial minorities- Native Americans, Latinos, and African Americans average income levels are much lower than Asians and WhitesSolutions to Poverty- Government assistance- TANF (temporary assistance to needy families)- Supplemental security income- Food programs- Housing assistance- Medical care- Education assistance- Child care- Child support enforcement- EITC (earned income tax credit)- International goals to reduce poverty1. Eradicate hunger and extreme poverty2. Achieve universal primary education3. Promote gender equality and empower women4. Reduce child mortality5. Improve maternal health6. Combat HIV/AIDS, malaria, and other diseases7. Ensure environmental sustainability8. Develop global partnershipsGender InequalityDifferences between Sexism, Gender, and Sex- Gender: the social definitions and expectations associated with being female or male- Sexism: belief there are innate psychological, behavioral, and/or intellectual differences between women and men and these differences represent the superiority of one group- Sex: the biological differences between men and womenSociologist’s arguments on how gender is socially constructed- Research shows only slight hormonal differences between males and females, but we see a big difference between males and females in regards to aggression and strength- Size and strength is mostly influenced by diet and exercise, which is influenced by culture, class, and race- Males more capable than women: differences among males and among females are greater than the differences between males and femalesDifferent types of minority status- Double jeopardy: taking into account race and gender- Triple jeopardy: taking into account race, gender, and classEx: black woman, low class, homosexualFour factors for measuring variations in gender gaps1. Economic participation and opportunity2. Educational attainment3. Health and survival4. Political empowermentTop ranked countries with low gender gaps1. Sweden2. Norway3. Finland4. Iceland5. GermanyLowest ranked countries with high gender gap1. Mauritania2. Morocco3. Iran4. Egypt5. Benin6. Nepal7.