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The most significant threat to the relatively high standard of living we’re accustomed to in the United States is the decline of the middle class. The size, income, and wealth of the middle class have all been declining since the 1970s. This is occurring at a time when corporate profits have increased more than 141 percent, and CEO pay has risen by more than 298 percent (Popken 2007).

G. William Domhoff, of the University of California at Santa Cruz, reports that “In 2010, the top 1% of households (the upper class) owned 35.4% of all privately held wealth, and the next 19% (the managerial, professional, and small business stratum) had 53.5%, which means that just 20% of the people owned a remarkable 89%, leaving only 11% of the wealth for the bottom 80% (wage and salary workers)” (Domhoff 2013).

While several economic factors can be improved in the United States (inequitable distribution of income and wealth, feminization of poverty, stagnant wages for most workers while executive pay and profits soar, declining middle class), we are fortunate that the poverty experienced here is most often relative poverty and not absolute poverty. Whereas absolute poverty is deprivation so severe that it puts survival in jeopardy, relative poverty is not having the means to live the lifestyle of the average person in your country.

As a wealthy developed country, the United States has the resources to provide the basic necessities to those in need through a series of federal and state social welfare programs. The best-known of these programs is likely the Supplemental Nutrition Assistance Program (SNAP), which is administered by the United States Department of Agriculture. (This used to be known as the food stamp program.)

The program began in the Great Depression, when unmarketable or surplus food was distributed to the hungry. It was not until 1961 that President John F. Kennedy initiated a food stamp pilot program. His successor Lyndon B. Johnson was instrumental in the passage of the Food Stamp Act in 1964. In 1965, more than 500,000 individuals received food assistance. In March 2008, on the precipice of the Great Recession, participation hovered around 28 million people. During the recession, that number escalated to more than 40 million (USDA).

Social classes in the united states

A young man with tattoos, a leather vest, and a spiky Mohawk haircut.
Does taste or fashion sense indicate class? Is there any way to tell if this young man comes from an upper-, middle-, or lower-class background? (Photo courtesy of Kelly Bailey/flickr)

Does a person’s appearance indicate class? Can you tell a man’s education level based on his clothing? Do you know a woman’s income by the car she drives?

For sociologists, categorizing class is a fluid science. Sociologists generally identify three levels of class in the United States: upper, middle, and lower class. Within each class, there are many subcategories. Wealth is the most significant way of distinguishing classes, because wealth can be transferred to one’s children and perpetuate the class structure. One economist, J.D. Foster, defines the 20 percent of U.S. citizens’ highest earners as “upper income,” and the lower 20 percent as “lower income.” The remaining 60 percent of the population make up the middle class. But by that distinction, annual household incomes for the middle class range between $25,000 and $100,000 (Mason and Sullivan 2010).

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Source:  OpenStax, Introduction to sociology 2e. OpenStax CNX. Jan 20, 2016 Download for free at http://legacy.cnx.org/content/col11762/1.6
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