Transcript Ch.11-Social Class

Ch.11-Social Class
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Today’s
Coming Attractions!!
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How much are you worth?
How are you affected by globalization?
How far away are you from being
homeless?
Are you poor?
What are your chances of having the
“American Dream”?
How to get rich!
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How much are you worth?
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Income vs. wealth
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Wealth = Assets – debts
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Median family income = $51,407
Typical U.S. household = $71,600
Lowest ranking 40% of US families
have no wealth at all. Why?
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How are you affected by
globalization?
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Factory jobs are leaving
Technology workers also being
outsourced.
Will your job be next?
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Are you poor?
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Absolute poverty
Relative poverty
1/3 of homeless are entire families
Feminization of poverty
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A larger share of the poor are women
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What are your chances of
having the “American Dream”?
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Upward social mobility and home
ownership.
Intragenerational mobility
Income has stalled
House prices are increasing
Most people are working two jobs
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What are your chances of having
the “American Dream”? (cont.)
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Young people staying at home
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53% of people 18-24 are living with
parents
Rich become richer, the middle class
people are sliding down.
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How to get rich
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Get an education (4-8years)
Get a job and move up in the company
Maximize company matching funds for
retirement
Get married and stay married
Start a small business
Buy a house and trade up when
possible
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How to get rich (cont.)
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Save money and invest some each
month.
No “One right way” to invest
½ in Russel 2,000 Index funds
½ in Bonds or Realestate
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