FREE ESSAY ON WEALTH & POVERTY

WEALTH & POVERTY

Patricia Stegall 6/30/99
Sociology 1B
Midterm 2 Essay
Identify and discuss sociologically the issues about wealth and poverty in American
Society. What do you believe and why?
The distribution of wealth, economic inequality, and the growing numbers of people living
at or below the recognized poverty level are issues that must be dealt with in the United
States. In general, Americans subscribe to the concept that everyone has a right to a
standard of living adequate for the health and well-being of himself and family, but the
reality is much different.
Depending upon which statistics you believe, either the disparity in the distribution of
wealth is growing greater and greater, or statistically, it has remained static.
Nevertheless, it is apparent that the country has a growing problem of more and more
people becoming homeless, and more people living it poverty.
In Issue 8 of our readings, Paul Krugman indicates that this inequality in living
standards arise from technological advances that have eliminated low-skill jobs, imports
from low wage countries, and more importantly, the decline of the labor movement. He
argues that unions provide a political counterweight to the power of wealth. In
opposition to his position, Christopher DeMuth claims that the inequality has been
greatly exaggerated, that it is a small tick in the massive and unprecedented leveling of
material circumstances that has been proceeding for nearly three centuries." Mr. DeMuth
sees the fulfillment of material needs as creating a need to change the way we gauge
economic welfare and equality from income to consumption. Each author uses different
indicators to support his thesis. Frankly, I don't accept either premise. In my opinion,
the issue is much larger than just the failure of the unions to maintain power or
changing the way we determine economic equality. It is a basic, gut-level issue of
survival for those people who do not have the jobs, the income, the means to enjoy the
current economic boom. 
In Issue 9, Nicholas Eberstadt argues that the withering away of the family as a central
social institution has led to the increase in poverty and that the breakup of the family
results in both financial and economic hardship, particularly in the fatherless
household. His argument continues that this has led to an increasing long-term dependence
upon government assistance programs. He also attributes the family breakup and
illegitimacy with the rise in crime. Eberstadt believes that the reassertion of
individual and familial responsibilites is central to dealing with the dysfunctions in
society. Although he does not use the phrase, he seems to be subscribing to the theory of
the culture of poverty. David Gordon, on the other hand, argues that the sharp decline of
job opportunities in low-skill jobs, reserving good jobs for those with a college
education, and the substitution of short-term jobs for steady jobs has been a major
factor in the growing poverty rate in this country. He implies that the creation of
employment opportunities will reverse the trend. In my opinion, both writers are being
very simplistic in their approach to the problem.
I see a definite increase in the disparity between the haves and have-nots over the past
twenty to thirty years. For example, the incredible salaries paid to sports figures and
to corporate executives are ludicrous to say the least. The middle class may enjoy more
material things today, bigger houses and labor saving devises, but no real increase in
spendable income and a significantly higher level of debt, and frankly, I am not too sure
just WHO the middle class is any longer. Further, to maintain this life style requires
TWO income-producing workers in the family. Conspicuous consumption appears to be the
normal way of life. 
In an increasingly service-oriented economy, we need to find ways to provide not just
jobs but wages that provide the means to support a family above the poverty level. For
example, the wealthiest spend a proportionately smaller amount of income on food and
shelter than do the poorest. It may be that some type of government program can
compensate for the lack of basic necessities; however, the record to date is pretty
dismal. The gap has grown even wider in recent years. Clearly there are no easy answers
to the problem of poverty, but I believe there are measures that could halt the
increasing disparity. Earned income credit and rent subsidies, if properly implemented,
could alleviate the burden on the working poor. There will always be those among us who
cannot work due to disability, age or infirmity, and the current Welfare Reform seems to
ignore these individuals. I don't believe government hand-outs are the solution but the
Federal government could develop incentives and a safety net.