24 12 2012 13 33 00 Two Americas Is this just the way it is Economy can grow despite increasing inequality We are less prosperous because of inequality Is it fair Working Poor Labor market problems faced by low income families Unemployment consistent or sporadic Involuntary part time employment Low earnings Contingent labor working more hours Underemployment working 10 hours a week when you should be Money Its Opposite Shipler Thinking about money Cascade Not having choices How to spend money An American Problem Earned income tax credit Scams Banking services Workplaces Effects on Family Life Families responses Women go to work Work more hours Mortgage homes Consequences Young men suffer Less educated suffer wealth Uneducated bare the consequences of the unequal distribution of Inequality and Wages Black Latino earnings as percentage of White 1950 African Americans earned about 32 of the earnings of Whites Today African Americans make about 60 of what Whites make Real Actual Wages Actual wage Real Wage Amount received by laborer for productive work Amount of goods services purchased with actual wage Buying Power changes with inflation Changes over time Minimum Wage Last vote to increase minimum wage 4 25 4 75 1996 to 5 15 1997 That wage in 2002 4 69 in 1997 dollars Federal Minimum Wage Act of 2007 2009 total increase to 7 25 Worth of minimum wage over time Does minimum wage lead to job loss Require private businesses with public contracts to pay workers a Living Wage living wage Public pays twice Initial subsidy to private businesses Public programs TANF food stamps housing etc This is how much it will cost to live If you re going to provide a living wage we ll provide you with a tax break to help with your costs Inequality and Wealth Net Worth White households 88 000 Black households 5 998 Latino households 7 932 Debt White families 11 Black families 33 Latino families 26 Income amount that comes into your house every year salary stock House car Wealth things that never really leave Credit cards and mortgages Home ownership White households 75 Black households less than half Latino households less than half Inequality and Place Top Ten Largest Metro Areas Atlanta DC Inequality and Mobility Late 1980s Poverty not intergenerational culture Oakland Cincinnati Ft Lauderdale LA Boston Newark NY Miami Earnings advantages of ancestors wiped out in 3 generations With growing gap between rich and poor 45 60 of advantage passed down Why is Inequality Problematic Challenges anti poverty efforts Isolates low income families Shapes well being of children Not enough food difficult to concentrate in school behavior issues 24 12 2012 13 33 00 24 12 2012 13 33 00
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