ࡱ> 13./0 _bjbj΀ W$,,,,,---89-<u-t-Vi-....v0v0v0hhhhhhh$ln`h,v0T0"v0v0v0h,,..i333v0,.,.h3v0h33Ndh. -v1ehh&i0Vi-fp oR2 o`h o,h$v0v03v0v0v0v0v0hh3v0v0v0Viv0v0v0v0 ov0v0v0v0v0v0v0v0v0 +: Social Inequality Unit 10 How is poverty an expression of inequality? Learning targets: Despite people's good intentions and concern, there is very little real attempt to solve the problems of poverty. The popular media tend not to run stories about poverty and inequality The people who are most likely to be poor are the social groups that people would rather ignore and who are often the victims of discrimination. The rich have strategies to keep themselves and their children in wealth and privilege. Key questions (AO1) What attitudes do we have to inequality? (AO1) How have the government tried to tackle inequality and poverty? (AO2) Is it necessary to address issues of inequality in our society? (AO2) What are social implications of inequalities in our society? Summary of Key Points Why is poverty a topical issue? In 2005, there was a major social and political campaign known as 'Make Poverty History'. Huge protest groups met to demonstrate against world poverty and inequality. Poverty became part of the news in a way that it had not been for very many years. Thousands of people wore white plastic wrist bands to symbolise that they rejected poverty; in reality, probably very little was achieved beyond raising awareness and creating a fashionable opinion. Wealthy and powerful people wore the wristbands and walked in demonstrations about world poverty. A website was created and pop stars signed up to end poverty. At the same time, as Yeo pointed out, a major, but under-reported famine was taking place in Niger and this was barely mentioned in the media that year as the reporters were covering protests at the G8 summit in Gleneagles. This illustrates a major point about poverty. Despite the fact that may people in Britain live lives that are characterised by poverty and deprivation, many people still believe poverty to be a problem that only exists in poorer or less economically developed nations of the world (LED). Politically, poverty is not usually big media news and is overlooked in favour of more fashionable campaigns and the activities of the rich and privileged. Another uncomfortable fact about poverty is that it affects certain groups of people who are not well represented in government and who do not have access to the media to promote their cause. These groups are generally people whom we discriminate against in many ways. They are those with disabilities, women, older people and young people, people with caring responsibilities, gay and lesbian people and Black and minority ethnic people, including Travellers. One of the causes of poverty is therefore is discrimination; certain people are rejected by society often for reasons beyond their control. They do not have access to the same life chances as many in the population and become vulnerable to poverty. How does government policy contribute to inequality? There is an increasing gap between rich people and poor people in Britain, despite at least 10 years of government targets in the 1990s to bring up the standard of living of the poorest to acceptable levels. Part of the problem is that solving issues of poverty, without tackling inequality is doomed to failure. The government attempts to solve problems of poverty by spending money on policies such as providing tax credits for the poor. Tax credits are payments from the government. People who work, but earn low wages, may qualify for Working Tax Credit if they have children. This particular policy was designed to reduce child poverty. It is an expensive policy. In the three years since it was introduced in 2003, something in the order of 65 billion was spent on tax credits by government. Even so, there is still a shortfall and poverty persists. The money paid out to people as tax credits, pensions and benefits is raised through taxation of richer people. However, in Britain, taxation is very unpopular and governments often pledge to reduce taxation for middle class people in order to gain the votes that will take them into power. The government therefore also spends money on reducing taxation for the richer. The impact of this is that DWP figures in 2008 showed the incomes of the poorest 20% of households fell by 1.6% between 2005-06 and 2006-07 while those of the richest households rose by 0.8%. Thus, although Britain is one of the wealthiest countries in the world, one in five of its children is living in poverty. When the welfare state was set up in the 1940s and 1950s, many benefits paid out by the state were universal. Everyone was paid money in pensions or child benefit and then the cost was clawed back through taxation of richer people. One of the advantages of this system is that it is easy to administer and efficient. A weakness of the system is that it means that taxation levels are high and this is very unpopular in Britain, although many European countries accept high taxation in exchange for a high standard of living for everyone. One of the main beliefs of the Conservative New Right government of the 1980's was trickledown theory. This is the idea that if you make the very rich even richer through offering them bonuses and incentives, they will spend more money and keep poorer people in work. Clearly this did not work. The effect was to make rich people very much richer. Greed was seen as being a virtue in the 1990s when it was acceptable to be selfish and accumulate vast wealth through the new technological industries that were springing up. The New Right froze benefits and welfare spending in order to pay for tax cuts for the very wealthy. Since the late 1970s when the New Right took control of government, there has been a movement away from universal provision of welfare towards the targeting of welfare. Now money is directed at certain needy groups. Feinstein (2006) identifies problems with targeting benefits and these include the fact that many people may slip through the net because they move in and out of targeted groups. For example, children from poor families may have unstable lives and be moved between different sets of relatives. It is possible that the benefits will not always follow the children. There is always the risk of feeling embarrassed and many people do not claim benefits for which they are entitled because the claim system is so complex or they do not want to feel ashamed. For example, many parents refused to claim free school meals for their children if there was any way that others could identify the children who were entitled to free meals. Although New Labour has targeted the poor and spent vast sums on targeted benefits and poverty relief schemes, it can be argued that they were not likely to solve problems of inequality. Peter Mandelson, one of the main figures in the Labour Party pointed out that they were 'intensely relaxed about the wealthy'. Thus many people have become very rich leaving the middle and the poor behind. How has globalisation contributed to inequality in the UK? Curiously, one of the main reasons for poverty and inequality in Britain is the availability of cheap goods and of poverty in those countries that are normally described as LED (less economically developed). The process has been described in books such as Naomi Klein's No Logo and George Ritzer's The MacDonaldisation of Society. Globalisation is the process whereby people are becoming more and more part of one single society and are losing their own cultures. For example, three hundred years ago, most people would have eaten, dressed and used items that they made for themselves or which were very local to the area in which they live. They would have developed their own regional cooking, eaten food that was in season and worn individual clothes to a style that was local to their area. Now, we wear clothing made in a variety of countries, eat foods from all around the world and tend to follow fashions that are given to us by the media and magazines. This luxury and choice comes at a terrible cost to the poor people of all of the countries of the world. Companies are owned in countries such as the United States and the UK. They design styles for items such as trainers or sports goods but they do not make them. Instead, these goods are made in factories in poor countries, often in sweatshop conditions where people are paid very poor wages and work for very long hours. The manufactured cost of a pair of trainers that sells for 90 may well be less than 3. People in wealthy countries pay more for advertising, marketing and transporting the goods than they pay for the goods themselves. Very little of the price of a packet of tea or a jar of coffee goes to the growers, unless you buy Fairtrade goods. There has been a growth in the marketing, media and advertising industry, but only a few people benefit from this and they are generally very well paid. Traditional manufacturing is dying out in Britain as goods are made cheaply in developing countries. So, there are few jobs for British workers except in low pay casual work such as retail or food services. This work is generally unpleasant and lacking in creativity, so that workers cannot have a normal conversation with clients, but have to follow a set script where they all say the same things, 'Would you like fries with that?' or 'Do you need any help with the packing?'. Thus, unskilled British workers do not have access to good jobs or work that is satisfying and interesting. Meanwhile, poor workers in LED countries may be working long hours in terrible conditions to provide very cheap goods for people in the West. It is sometimes claimed that many Chinese products are made in prison labour camps where prisoners are forced to work; often they are guilty of little but criticism of the government. The big multinational companies who sell brand name goods such as Gap, Adidas, Nike and others have control over the market and they are able to produce large numbers of goods very cheaply in developing countries. They undercut the prices charged by local brands so that small manufacturers go out of business. In very few years, Starbucks, Cafe Nero, Subway and other coffee shop chains have increased their control over the market so that there are fewer independent cafes and restaurants in British cities and towns. How are attitudes to social inequality changing? There is some evidence that there are changing attitudes to inequality. The credit crunch of the 2008-9 has underlined just how well the extremely rich have been rewarding themselves for work and people have been scandalised by the pensions and rewards offered to the executives of banks and financial service companies, often for spectacular levels of mismanagement. There has always been disquiet at what is known as the 'Fat cat' salaries paid to executives. In 2006, Jonathan Prynn, of the Evening Standard described how executive pay had risen by 30%, more than seven times the rate for ordinary workers. He described how the average pay for a chief executive at one of Britain's biggest companies had risen to 2.4m, almost 100 times average earnings. The standard rate for a finance director was 1.1m a year. He says that the acceleration in bosses' pay has opened up an ever widening gap between those running companies and people on the shop floor. In 2005, the average worker's pay packet went up by 3.7%, while inflation inched ahead by 2.5%. The JRF in their work on social evils looked at inequality and commented that participants in their research had suggested that poverty was closely linked with other social evils. For example, they described how, in a deprived community, making money from drug dealing can seem an appealing option to young people who have no access to other work. They claim that there was widespread concern about inequality - the polarisation of society into 'haves' and 'have nots'. Website respondents to their blogs felt that growing inequality in Britain is socially divisive and morally wrong, partly because income differences do not always reflect people's efforts. Participants added a different perspective. They recognised that people doing well would welcome growing affluence, but noted that there were huge numbers of people not benefiting. Recent fascinating and very well reported cross-cultural research by Wilkinson and Pickett (2009) entitled The Spirit Level underlines the terrible impact of inequality on a society. They say that large inequalities of income in a society have often been regarded as bad for a society, and it is common knowledge that in rich societies the poor have shorter lives and suffer more from almost every social problem. However they go on to claim that unequal societies are bad for almost everyone within them - the well-off as well as the poor. Almost every modern social and environmental problem - ill-health, lack of community life, violence, drugs, obesity, mental illness, long working hours, and big prison populations - is more likely to occur in a less equal society. Indonesians, Vietnamese, Finnish and Japanese people from more equal societies will claim to be happier than the British and Americans. This is despite the fact that average levels of wealth are higher in the UK than in Indonesia and Vietnam. Nevertheless, as with the Make Poverty History campaign which raised consciousness but, it is argued, had little real impact on poverty, it remains questionable as to whether the increasing concern with inequality in society will have a lasting impact or really affect those who actually do have the power to make the necessary changes. How do people consolidate their wealth and power? There are structures in society that enable the wealthy to maintain and develop their positions of power and wealth. Some of these are personal and require them to use strategies, one of which is to invest their money carefully in items such as works of art, property or land. However, wealthy people can also use the way that society is organised in order to look after their own interests. It is known for example that although the wealthy pay large sums of money in taxation, they actually probably spend a smaller proportion of their income in this way than less wealthy people. There are many tax loopholes that the super-rich can access and many employ tax avoidance lawyers to help them to do so without necessarily breaking the law. They have access to offshore accounts which are bank accounts in countries where the tax rates are very low indeed. Many choose to spend time in tax havens and limit their time in their own countries so that they are not liable for high rates of income tax. In UK, such regions of low taxation are the Channel Islands and the Isle of Man. Internationally, Switzerland and Lichtenstein have low taxation rates for bank accounts. In addition, many rich people invest in providing their children with an expensive and exclusive education in expensive schools and top league universities where they will not be expected to mix with their social inferiors. In fact, they will often not mix with the non-wealthy at all. They attend elite private schools and may live in gated communities or in large private houses with land. They go on holidays in remote and expensive locations. This may leave them with an unrealistic view of society. In 2008, a survey of rich Americans by the Spectrem group showed that many considered assets of over 1,000,000 not to be rich at all. Rich people felt that it required at least $5 million to be considered wealthy and 8% picked $100 million as being the amount it took to be considered rich. C Wright Mills in 1956 described what he called a 'power elite' in America. He claimed that the upper classes control politics, the army and business. Individuals from powerful families are born powerful families and may join one of these groups. In effect, they have become a caste (outsider people are not usually allowed to join them). They control all the important decisions that are made in society. He goes further to suggest that democracy is a sham. Big businesses and corporations control politics. This has clearly been an influential and controversial thesis; but the existence of very powerful families is evident in American politics - more than one president has been related to another president, for example. Whether the same is true of British society remains a matter for debate. It is clear, however that people from wealthy families have access to privilege and power structures to ensure that their children are protected from moving down the economic structures of society. Goldthorpe (1980) and Glass (1954) both found evidence of what they described as 'elite self-recruitment' whereby privileged and powerful positions go to children of wealthy and powerful people. The evidence to support this thesis is mixed; certainly there was probably more social mobility (movement through the classes) when these people were researching class than there is in modern British society. However, as educational qualifications become more important for people to gain top jobs, so too differences in educational attainment between the social classes are widening and the pressure from middle class parents to get their children into high attaining schools has become a major political issue What should you have in your folder of notes on this topic? (AO1) Key concepts Define the key concepts and ideas. Elite self-recruitment Fairtrade Famine Fat cat Gated community Globalisation Income tax Less economically developed nations of the world (LED) Multinational Polarisation Sweatshop Targeted benefit Tax haven Trickledown theory Unheard groups Universal benefit Independent study Compulsory Make separate revision cards for each of the researchers, reports and theories mentioned in these notes Use textbooks to research two different studies in two different areas of wealth inequality and make detailed examination notes from them. Practice writing short examination answers with four paragraphs based on these areas of inequality. Extension work Create revision cards for the studies and evidence that you could use to demonstrate wealth inequality. Revise theories to explain wealth inequality from a textbook use Haralambos or any of the other A level texts in the LRC Create a PPT to explain how globalisation can lead to poverty in the UK Suggest solutions to the problem of inequality in our society. Useful websites and sources of information (AO1): All of the Sociology textbooks in the LRC will have a large amount of material on this topic and you should read as much as you can. You should use the website of the NGfL Cymru and look at the ebook to develop your notes  HYPERLINK "http://www.ngfl-cymru.org.uk/sociology-as-ebook-a2"http://www.ngfl-cymru.org.uk/sociology-as-ebook-a2 World poverty campaigning sites  HYPERLINK "http://www.makepovertyhistory.org/"http://www.makepovertyhistory.org/  HYPERLINK "http://www.one.org/international/actnow/?gclid=CPKn_vKks6ICFUNb4wodW01w6A"http://www.one.org/international/actnow/?gclid=CPKn_vKks6ICFUNb4wodW01w6A Noami Klein's website advertising No Logo  HYPERLINK "http://www.naomiklein.org/no-logo"http://www.naomiklein.org/no-logo You'll enjoy the Adbusters site that campaigns against consumerism in society and the effects of globalisation.  HYPERLINK "https://www.adbusters.org/"https://www.adbusters.org/ A newspaper reviews and articles about The Spirit Level  HYPERLINK "http://www.guardian.co.uk/books/2009/mar/13/the-spirit-level"http://www.guardian.co.uk/books/2009/mar/13/the-spirit-level  HYPERLINK "http://www.guardian.co.uk/society/2009/mar/12/equality-british-society"http://www.guardian.co.uk/society/2009/mar/12/equality-british-society And a PowerPoint of the slides from The Spirit Level  HYPERLINK "http://www.equalitytrust.org.uk/resources/slides"http://www.equalitytrust.org.uk/resources/slides Find out more about the work of The Equality Trust and look at the briefing documents and supporting evidence to add to your notes on social differences  HYPERLINK "http://www.equalitytrust.org.uk/"http://www.equalitytrust.org.uk/ Here's an article critical of The Spirit Level  HYPERLINK "http://www.adamsmith.org/blog/justice-and-civil-liberties/the-spirit-level-delusion/"http://www.adamsmith.org/blog/justice-and-civil-liberties/the-spirit-level-delusion/ Answer these questions in your notes Suggest reasons why poverty in Britain is not a good news story. Why do targeted benefit systems fail to solve problems of poverty? Why do targeted benefit systems fail to catch everyone who is poor? Why has New Labour failed to solve the problem of poverty despite spending more money on anti-poverty schemes? What is trickledown theory? What is globalisation? Why has manufacturing declined in the UK? What is a sweatshop? Why have people expressed concern at growing inequality in society? Why is social inequality linked to other social problems? What can the rich do to ensure that they do not mix with the poorest sectors of society? Why would the rich prefer to mix with other rich people? How do the rich avoid paying taxes? What is a power elite? To what extent can rich people be said to form a power elite in British society? What impact do you think government cutbacks (2010) to save money will have on the poorest in British society Outline and explain two areas of life where there are wealth inequalities. For each, give two different types of evidence to support the view that inequality is significant. One area of life is and the first piece of evidence isOne area of life is and the second piece of evidence isThe second area of life is and the first piece of evidence isThe second area of life is and the second piece of evidence is Research Methods As an A level Sociologist, you have been asked to research how wealthy people are able to maintain their position in British society. Suggest a simple research design and justify your choices. 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