Please Note:

1. Please Note: • These slides are meant to help students think about the material. They are not meant to replace reading the material or taking notes. Using these slides as your only means of garnering information could harm your ability to understand the content of this class. • Please turn off cell phones, MP3 players and other technology of which I’m unaware.

2. What is Stratification? • The way political power, wealth, income, health and other opportunities are disparately organized.

3. Examples of Strat. • 1) Global Priorities • Basic education for everyone in the world would cost 6 billion dollars more than what we presently spend. • Water sanitation for everyone in the world would cost 9 billion dollars more. • Basic health and nutrition for everyone in the world would cost 13 billion dollars more. • Ice cream sales in Europe is 11 billion dollars • Pet foods in U.S. and Europe costs 17 billion dollars • Military spending in the world is 780 billion

4. Examples of Strat • 2)Global Stratification • A) Number of children in the world is 2.2 billion but the number of children in poverty is 1 billion. • B) 10% of the worlds population controlled 54% of the worlds’ income in 2008 and 40% owned 5% of the worlds’ income. • C) 20% of the population in developed nations consume 86% of the worlds goods. • D) U.S. citizens consume 25% of worlds’ oil and is responsible for 25% of all carbon dioxide emissions (but is 4% of the world’s population).

5. Examples of Global Strat. Continued… Difference in wealth between richest and poorest countries: • 1820: 3 to 1 • 1913: 11 to 1 • 1950: 35 to 1 • 1973: 35 to 1 • 1992: 72 to 1 • 2008: 100 to1 United Nations determined in 1998 that if 20 wealthiest people in the world gave 40% of their wealth away, there would be no more poverty.

6. U.S. Stratification • 3) Income and Wealth Gap in U.S. • U.S. has largest gap between rich and poor. • .

7. Average CEO Pay

9. Stratification • 1) How would you measure the well-being of Society? • 2) Government defines well-being with two measures: • GNP– “is the total value of all final goods and services produced by a country's factors of production and sold on the market in a given time period. For example, because Mercedes-Benz is owned by Germans, its profits from its Belgian activities would count towards German GNP, but because the activities take place in Belgium it would count toward Belgian GDP. A Brit working in Paris would have her income count toward UK GNP but her output would be part of French GDP” (wikipedia). • Unemployment – Number of people in a population actively looking for employment.

10. GDP as Institutionalized • GDP NOT easy to measure! • Product Approach: businesses fill out surveys of value added outputs (outputs minus inputs). • Expenditure Approach: GDP (Y) is a sum of Consumption (C), Investment (I), Government Spending (G) and Net Exports (X - M). • Income Approach: • GDP = COE + GOS + GMI + TP & M - SP & M • Compensation of employees (COE) measures the total remuneration to employees for work done. It includes wages and salaries, as well as employer contributions to social security and other such programs. • Gross operating surplus (GOS) is the surplus due to owners of incorporated businesses. Often called profits, although only a subset of total costs are subtracted from gross output to calculate GOS. • Gross mixed income (GMI) is the same measure as GOS, but for unincorporated businesses. This often includes most small businesses. • This American Life: 1/3/10….44: 02 to 46:46 • WATCH: http://www.npr.org/blogs/money/2011/10/26/141741360/video-what-is-gdp

11. Standard of Living vs Quality of Life • Economic well being of macro (society as a whole) • Versus • Overall sense of well being of micro (sum of individuals)

12. Quality of Life: VariablesWhat makes you happy? • Health/physical comfort • Family relationships • Political stability • Security • Choices/opportunities (equality) • Fulfilling work • Spiritual fulfillment • Community support/involvement • Environment (climate)

13. United Nations “Quality of Life Index”life expectancy, literacy, school enrollment and per capita gross domestic product in 182 countries.

14. Why Norway ? • Universal health-care, • Subsidized higher education and job re-training • Comprehensive social security system (1-3 World Economic Forum). • Most peaceful country in the world ( Global Peace Index) • The world's most democratic country (Democracy Index). • The world’s most gender equitable country (World economic forum) • Accessible bike trails and public transportation. • Subsidized Childcare

15. Stratification • 3) Other measures of Well-being: • Genuine Progress Indicator: • http://www.rprogress.org/newprograms/sustIndi/gpi/index.shtml

16. Stratification • 4) How does Capitalism Contribute to Stratification? • Structural Inequality Building Poverty into the Economic System. Structural unemployment, unlivable wages, poverty, etc. B) Why is U.S. Capitalism more stratified than other capitalist countries? Theoretically, stratification is fair if you have: Equal opportunity: Free competition and free information. Practically, US is less likely to provide equal opportunity than any other industrialized nation in the world.

17. Stratification Supply Side Economics: Social policy that favors businesses. Trickle Down Theory Trade Agreements (What is free trade?) Tax Policy (Transfer pricing? Capital Gains?) Minimum Wage instead of Living Wage) Bailouts, Subsidies

18. When Is Stratification Justified? • In capitalism, how do we justify giving some people more than others? • Think of the IDEOLOGY that justifies this? • In which ways is this ideology contradicted by rules and other ideologies?

19. Meritocracy? • What is it? • Schooling in Capitalist America?