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October 7 th Sign in, deposit participation cards Pass out Midterm #1 Continue Lecture Three Homework: Read Chps 9-11 of Working Poor As you read, make notes on what you think the causes of poverty are for the ‘working poor’ Poverty

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october 7 th
October 7th
  • Sign in, deposit participation cards
  • Pass out Midterm #1
  • Continue Lecture Three
  • Homework:
    • Read Chps 9-11 of Working Poor
    • As you read, make notes on what you think the causes of poverty are for the ‘working poor’
poverty
Poverty
  • Poverty: Official definition of poverty was developed in 1964 and is based on food consumption as 1/3 of household costs
    • Absolute – physical deprivation
    • Relative – deficiency relative to the population as a whole
  • What are the main expenditures for households today?
who is most likely to be in poverty
Who is most likely to be in Poverty?
  • 58% of Americans will live poverty for at least 1 year
    • 1 in 3 will experience extreme poverty for at least one year
    • 27% will experience poverty before age 30
  • What creates this high risk for Americans?
    • Time – life stages, such as divorce and other unanticipated events
    • Safety Net – very few social services to help people through rough stages
    • and Labor Market – not enough good paying jobs
feminization of poverty
Feminization of Poverty
  • Women are disproportionately represented among the poor
    • More likely to be in low-pay service jobs
    • Women still make $0.76 for every man’s dollar
  • 42% of female-headed households are in poverty, compared to 9% of two-parent families
    • Children are more likely to live in poverty than adults – 35% of US poor are children
the color of poverty
The Color of Poverty
  • Higher rates of poverty among non-whites
    • White- 8%
    • Black – 25%
    • Hispanic – 22%
    • American Indian – 25%
  • Average white family has a net worth 7 times that of the average Black family
    • This gap has grown since the 1960’s
  • The wealth gap accounts for many of the racial inequities
    • Racial disparities almost disappear when economic resources are equal
working poor or the nearly poor
Working Poor or the Nearly Poor
  • Working Poor: workers in jobs at 27 weeks of the year that are less secure, low-paying, and deskilled
    • In 2005, 36.8% of the poor worked and 11.4% worked full-time
  • Over 5% of the population are ‘working poor,’ but majority are non-white, female, and immigrant
why so many working poor
Why so many working poor?
  • Economic restructuring in the post-industrial society
    • High skill, high tech, high wage jobs

versus

    • Low skill, low tech, low wage jobs
  • Increasing gap between the rich and poor
    • Ratio of CEO-worker pay in 2005 was 262 to 1 (in 1965 it was 24 to 1)
  • Welfare to work (1996) pushed many poor (primarily women) into low paying, dead-end jobs