SOA 1061st Edition Lecture 22Outline of Last LectureI. Reactions to “In Sickness and in Wealth”II. Social StratificationIII. Class Inequality and Life ChancesOutline of Current LectureII. CEO vs. Worker PayIII. Wealth and Wealth InequalityCurrent LectureCEO vs. Worker Pay● Inequality is low when union impact is high○ but some workers today believe that they do not need unions (inequality is higher today)● Average CEO pay in US is over $10 million a year○ minimum wage worker earns $15,000 a year● 1980 CEO compensation was 20 times more than worker compensation. Today it is 364 times more○ we accept it○ but in reality we can do something about itWealth and Wealth Inequality● Wealth-- all assets owned by an individual including cash, savings, investments in property, stocks and bonds.● Wealth inequality is more dramatic than income inequality● Wealthiest 20% of US households own 85% of nations wealth● Top 1% own one third of nations wealth● Bottom 40% of US households own .1% of wealth● Median family net worth○ top 10% = 1.3 million○ lower middle quarter = 40,800○ bottom 25%= 1,100● If wealth were points in class, the highest fifth would get 2125 points and the rest of the class would fail● Is high level of wealth inequality a problem?○ threatens democracy (money = speech)○ contradicts national creed of equal opportunity○ raises questions about our stratification system being based on merit● We tell ourselves that we are a nation of equal opportunity so much that we believe it● Should inheriting wealth be
View Full Document
Unlocking...