SOC 101 Lecture Notes - Lecture 6: Real Income, Great Depression, Poverty Threshold
28 Apr 2016
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Booms and busts: economy is social institution that produces and distributes goods and services. Stagnant real income since 1970: real income = income adjusted for inflation. Low savings rate: less to draw on when money needed, less to invest. Undermine ability to compete in global market. Excessive dependence on foreign capital (lots of borrowing: desirable level is 8% A debtor nation: negative trade balance since mid-1970"s ( b deficit in aug. 2015) Balance of trade= difference b/w imports and exports over period of time: spending more of govt. services than collecting in taxes8, national debt = . 2 trillion (,000 per person) Slide 7 graph: blue is w/ inflation so looks like making more, red w/o inflation shows stagnant real income, non-supervisory employees like teachers, real estate agents, cashiers. Starvation, no housing or clothing: relative poverty. Not being able to afford what is considered normal in given society: poverty threshold.
