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1、Intersections The Political Economy of Race and Class in the United States,I. Defining Race and Class,A. Little genetic variance exists in humans 1. Why? Bottleneck 100,000 200,000 years ago 2. Migration: “The Urge to Merge” 3. Result: We all have about the same set of ancestors in 1000 BC (everyone
2、 alive now is descended from everyone alive then, but in different proportions) B. Race not biologically significant On average: Two random people of the SAME race have 90% as many genetic differences as two random people of DIFFERENT races,C. “Race” is a Social Category,1. Nationality as Race: “How
3、 the Irish Became White” 2. Ancestry as Race: “One Drop” 3. Multiracial Classification: Breaking Down Categories,Usual Criteria: Income, Wealth, Power Prestige occupations They Pay More They Require More Education They Entail More Abstract Thought They Offer Greater Autonomy,D. What is Social Class?
4、,E. Intersectionality,This term refers to ways in which different types of divisions or discrimination may reinforce each other Example: Race and Class Racial stereotyping denies economic opportunities lower incomes People with lower incomes cant live in nice neighborhoods housing segregation Poor n
5、eighborhoods have more crime racial stereotyping of their residents Implication: If race and class divisions reinforce each other, tackling one will be difficult without tackling the other,II. Explaining Income Inequality: Intersectionality or Something Else?,A. Unemployment: What explains the racia
6、l gap?,1. Name Discrimination,“White” names about 50% more likely to be called for interviews than “Black” names Sample stereotyped names:,2. Interviewer Bias,Identical qualifications Whites usually hired Identical statements Whites perceived as less aggressive Experiments: Interviewer race affects
7、evaluation of qualifications (circumstances vs. personal responsibility),B. Education 1. It matters, but cant explain whole income gap,2. Domino Effect: College Education Reinforces Class Divisions,C. Perceived Workplace Racism: A Problem for Free Markets,D. Trends in Income Inequality,1. Recent Gro
8、wth: A rising tide that lifts some boats faster than others. Why?,2. Comparison: US vs. World,Gini coefficient (a measure of inequality): higher numbers mean more inequality,3. Increasing inequality is relatively new little change for 35-year period,III. Wealth Inequality: Obstacles to Social Mobili
9、ty,A. How Do Families Accumulate Wealth?,1. Theory from Classical Economics Savings, Wise Investment, Hard Work Life Cycle 2. Institutional Accumulation: Wealth transferred through legal channels 2/3 of Middle Class Wealth is Home Equity: Homestead Acts, FHA, Home Mortgage Interest Deductions promot
10、e this form of wealth,A. How Do Families Accumulate Wealth?,1. Theory from Classical Economics Savings, Wise Investment, Hard Work Life Cycle 2. Institutional Accumulation: Wealth transferred through legal channels 2/3 of Middle Class Wealth is Home Equity: Homestead Acts, FHA, Home Mortgage Interes
11、t Deductions promote this form of wealth Education: Land Grant Colleges, GI Bill, Subsidized Student Loans, “In Vivo” wealth transfers from parents Retirement Accounts: Federal programs, subsidies, and tax credits for pensions and savings,B. Inheritance and “Sedimentation”,Wealth transfers perpetuat
12、e “sedimentation” of inequality implies that historical discrimination creates inequalities that persist even after discrimination ends. Two primary mechanisms: 1. Inheritance Whites 4 times as likely to Inherit; Typical Inheritance for Whites=$10,000; African-Americans=$800 2. In Vivo transfers (Do
13、wn payments; Education and College Tuition) - Today, most people pass their disposable tangible wealth to their children during life by education expenditures (not by will or inheritance). Other in vivo transfers: Life insurance Joint tenancy Pensions,C. Fragility: Small Assets Dissipate During Rece
14、ssions,Example: During the 2001 recession and “jobless recovery,” Latino and African-American families lost over one-quarter of their wealth while the wealth of white families grew slowly, 2 percent.,D. Class Mobility in America: Is Inequality the Future?,1. “The high cost of being poor.” Without sa
15、vings (wealth) or credit (related to wealth and income): No deposit Funnels people to rent-by-the-week motels, more expensive than apartments (largely due to food costs) Higher utility and other deposits Bank scarcity: Reliance on money orders, check-cashing facilities, payday lenders, pawn shops, r
16、ent-to-own furniture and appliances Higher costs for groceries (no mega-stores), laundry, gas Car purchases, loans, insurance much higher for poor, even controlling for driving record,2. Intergenerational Mobility,a. Definition: Probability children will have different relative income than parents,b. Trend: Shrinking,E. Wealth Gap is Intersectional: Both Class and Race Matter,1. Mobility higher for poor white children than poor African-American children,2. Net
