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Social Inequality: Exercise 1 - Social inequality


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Social Inequality and Poverty in the U.S.

     Social stratification results in social inequality. Income is one important aspect of social inequality. Income is money a person is paid for work or money a person earns from investments.

     According to the Census Bureau, the average family income in 1998 was $47,467. However when we look at income distribution, we find a big difference between poor and rich Americans. For example, in 1998, the average family income of the poorest 20% of Americans was $12,526, while the average family income of the richest 20% of Americans was $140,846. The wealthy members of the American society are the most powerful and influence the political and economic direction of the country.

     Social inequality creates poverty. There are two types of poverty. Relative poverty refers to a condition of poverty where some people have fewer resources than others. Absolute poverty, on the other hand, is a condition of poverty which is so serious that it is life threatening. In 1998, the poverty line (the income below which the U.S. government considers a household poor) was $16,660. However, the average income of poor families was even below the poverty line: $10,040. There are a variety of factors, such as age, race, ethnicity and gender, that contribute to poverty. White people get more schooling and earn more money than African Americans. In 1998, the average income of an African American family was $30,636, while that of a White family was $49,781. In 1998, 18.9% of people under 18 years of age were poor. Women too represent a large share of the people who live in poverty.

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