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Chapter 8

SOCA01H3 Chapter Notes - Chapter 8: Redistribution Of Income And Wealth, Savings Account, Progressive Tax

Course Code
Sheldon Ungar

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SOCA01-Chapter 8
Social Stratification: Canadian and Global Perspectives
Patterns of Social Inequality
Shipwreck and Inequality:
-social inequality can be compared to a shipwreck
Ex. Daniel Defoe’s Robinson Crusoe
-about an Englishman marooned on an island
-his hard work turns the island into a thriving colony
-portrays the work ethic of capitalism
-believed that people get rich if they possess virtues of good business people
Ex. Swept Away
-opposite of Robinson Crusoe
-rich woman treats deckhands rudely, gets shipwrecked w/ one of them, they fall in
love but when they are rescued they return to how they were before
-movie sends 4 messages that contrast w/ the theme’s of Robinson Crusoe
1. You don’t have to work hard to be rich b/c you can inherit wealth
2. Hard work does not always make you rich
3. Something about the structure of society causes inequality (b/c class inequality only
disappears on the deserted island)
-unequal power b/w sexes
4. Inequality has many interrelated dimensions, including class, sex, and race, and
different contexts highlight different conditions of power and exploitation
Ex. Titanic
-at first, the theme is that class differences are important
-as the tragedy unfolds a different theme emerges
-under some circumstances, class differences can be erased
-therefore it can be an optimistic tale that holds out hope for society in which
class differences no longer matter (“American Dream”)
Economic Inequality in Canada:
-idea that money is power is a perennial theme”everything has a price”
-thus selling of sperm, ova, and blood is more common
-global organ shortage has encouraged the sale of organs, esp. in India
-has also stimulated the use of organs from executed prisoners esp. in China
-people selling body parts are almost invariably poor
-people buying body parts are invariably rich
-an increasing number of wealthy people (although not common) take their surgeons
to poor countries to buy organs to prolong their life
-in N.A. esp. the US, poor people more likely to suffer illness that could be alleviated by organ
transplantation than the rich
-also less likely to be offered transplant opportunities
-poor don’t have adequate private health insurance
-poor also more likely to be donors
-the sale of organs is not banned b/c argue that it might cost buyers their life and also infringe
on the autonomy of sellers

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-materialism: attempt to satisfy needs by buying products or experiences
-defining characteristic of modern society
-economic prosperity has made Canada one of the best countries to live in
-can be seen in the average income of Canadian families from 1950-2006
-purchasing power of families rose
-due to enhanced productivity, improved worker’s skills, advances in
-however, average earnings have increased at a slower rate more recently
-economic prosperity and materialism not equally shared
-the concept of the share of income held by each quintile is frequently used to investigate
income inequality
-allows researchers to determine whether inequality is growing or shrinking
-among rich countries, income inequality is lowest in Sweden and highest in the US
-Canada is b/w these two extremes
-income inequality has changed little b/w 1951 and 2005 in Canada
-income inequality has widened in most rich countries but not by much in Canada
Explanations or Income Inequality:
-the job a person holds plays a large role
-some jobs not only pay less but have restricted hours of work or periods of unemployment
-thus, income inequality depends on what kinds of work a person can obtain
-some people earn high salaries b/c they have natural talents at activities that are widely
-ex. Jerome Iginla, Victoria Bertram, Shanaia Twain, Mike Weird
-although talent and effort matter, they only pay off when they are reined to particular skills
-many skills are relativepeople can only develop to the level of those to whom they are
-ex. Tennisrequires stiff competition to develop skills
-many skills require recognition and encouragement for development
-when individuals begin to participate in formal education, what they encounter varies in
compatibility w/ earlier experiences, mostly gained w/ family members
-success at formal schooling is the key to acquiring economically valued skills
-since Industrial Revolution, more jobs require formal education
-majority of income earners able to think critically, communicate persuasively, reason
logically, and work creatively
-affects the occupation they hold and their incomes
-importance of education as a determinant of occupation and income continues to increase
-the chances of advancing in educational systems is higher for people born into families that
are relatively more educated
-individuals must supply talent and effort to accumulate human capital
-but, rates of success also depend on human capital accumulated by their family in
previous generations
Human Capital theory:
-stresses the increasing centrality of education as a factor affecting economic success
-productivity gains can also result from investment in the skills and abilities of people
-knowledge intensive jobs are increasingly numerous in Canada
-better educated workers are more skilled and productive in these jobs
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