Questions and Answers
What percentage of American families have incomes between $25,000 and $150,000?
What are the three specific categories that make up the middle classes?
Upper-middle class, lower-middle class, working class
The emergence of the middle classes is a historically recent occurrence.
True
Who replaced the landed aristocracy as the most powerful class in society?
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The middle class in the United States was primarily made up of __________ and __________.
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What characterizes postindustrial society?
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What shift in the labor force occurred by the 1920s?
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The working class now includes many skilled tradespeople.
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What primarily defines occupational roles in the working class?
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By the end of the nineteenth century, the shift towards an __________ workforce was clear.
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What are some factors that have led to economic insecurity among workers?
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What is the estimated percentage of U.S workers who are now contingent workers?
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The number of routine production workers is increasing in the American workforce.
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The shift from a manufacturing-based economy to a _____-based economy has affected the labor force.
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Who were the Luddites?
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What are the three distinct categories of American workers according to Robert Reich?
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Labor unions in the U.S have seen an increase in membership over the last few decades.
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Which of the following companies derives over half of its revenue from outside the United States?
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What occupations are typically engaged in boring and routine tasks?
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How do working-class people's political perspectives compare to the upper-middle class?
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American working-class people are more politically active than those in most other industrial societies.
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What do many workers hope to achieve for themselves?
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What significant change has occurred in the job landscape since the mid-1970s?
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The ___________ oil embargo in 1973 changed the American economy forever.
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What was the economic condition of the U.S. during the Great Depression?
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What was one effect of the post-World War II economy?
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The real hourly wage of college-educated men is nearly double that of high school graduates.
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What types of jobs have been created during the economic restructuring since the 1970s?
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What have companies done to avoid unionization?
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Downsizing typically only affects blue-collar jobs.
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What is the term for when corporations cut their workforce to become more efficient?
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Which of the following countries has seen a greater voice for workers due to higher union membership?
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What is the impact of globalization on labor mobility?
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All workers have been equally impacted by offshoring.
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What has caused many middle-income families to feel economic distress?
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What does the term 'new consumerism' refer to?
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______ has been attributed as a factor contributing to the shrinking middle class.
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Match the following concepts with their descriptions:
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What is the main concern of Americans despite acquiring more material possessions?
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Most families that file for bankruptcy are from the lower class.
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What has contributed to the rise in consumer debt in American families?
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The increase in debt among middle-class families is primarily due to expenses related to good housing and _____ for their children.
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What is considered the most important factor in upward mobility according to middle-class parents?
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What phenomenon do Warren and Tyagi describe that affects dual-earner families?
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The middle classes have not been significantly impacted by the economic recession that began in 2007.
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What is the trend in consumer behavior that Paco Underhill believes will change post-recession?
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Match the classes within the middle class with their characteristics:
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What has led to increasing debt for middle-class families in recent years?
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Study Notes
Middle-Class Nature of the United States
- Objective classification shows most Americans (two-thirds) have incomes between $25,000 and $150,000.
- Distinct separation exists between the top 10% wealthy and the poor living near the poverty line.
- Middle class represents a state of mind, influencing self-perception, attitudes, and values.
- Class mobility primarily occurs within the middle class, with rags-to-riches stories being rare.
Historical Development of the Middle Classes
- Emergence of middle classes is a recent phenomenon tied to industrial capitalism.
- Before industrialization, societies mainly had two classes: the wealthy landed aristocracy and impoverished peasants.
- As industrial production rose, the merchant class (bourgeoisie) gained power, shifting wealth dynamics.
Formation of the Middle Classes in the United States
- The United States saw early and thorough development of middle classes compared to the Western world.
- Colonial America lacked a strict aristocracy or peasantry; independent farmers and entrepreneurs dominated.
- Land ownership was widespread, with property linking farmers and merchants, reflecting American values of individualism.
Industrialization and the Changing Class Structure
- Transition to an industrial workforce by the end of the 19th century diminished the predominance of farmers.
- Automation and urban factory jobs attracted farm workers, leading to a decline in agricultural labor.
- Marx identified a social division between owners of production and workers, predicting exploitation of labor.
- Industrial workers often endured harsh conditions and low wages in factories compared to vast wealth of industrial owners.
Emergence of the New Middle Class
- By the 1920s, industrialization paved the way for the growth of salaried white-collar workers in bureaucratic organizations.
- Jobs transitioned from small family-owned businesses to larger corporate enterprises, altering employment dynamics.
Postindustrialism
- Starting in the 1960s, the United States entered a service economy phase, with a decline in factory jobs.
- Postindustrial society emphasizes service and information production over goods manufacturing.
- By 1985, the workforce shifted to almost three-quarters in the service sector, driven by changing consumer spending patterns.
The Classes in the Middle and the Occupational Structure
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Occupation significantly influences aspects of social life such as economic power, prestige, and social expectations.
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Upper-Middle Class: Characterized by professionals and managers with high educational attainment, living affluently and engaging in civic activities.
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Focused on formal education, stable careers, and political engagement, especially in social issues but more conservative financially.
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Lower-Middle Class: A diverse group including small business owners and office workers, characterized by lack of significant wealth and job dependence.
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Often lacking power in their roles and bearing more vocational education than college degrees.
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Working Class: Involves blue-collar labor, with varying skill levels, often linked to manual labor and having less educational attainment.
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Includes skilled tradespeople and unskilled workers; lifestyles often marked by distinct leisure activities and family structures.
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Less politically active than upper classes, holding conservative social views yet liberal economic stances.
Blurring Occupational Categories
- The distinction between blue-collar and white-collar jobs has diminished, making class divisions less clear.
- Many white-collar roles have seen a decrease in skills and wages, leading to a perceived "proletarianization" of the workforce.### White-Collar Deskilling
- Lower status white-collar jobs, such as cashiers and bank tellers, have been deskilled, involving repetitive tasks with minimal cognitive demand.
- Cash registers automate calculations, reducing the skill required for handling transactions.
- Bank tellers have seen a significant decrease in numbers, from 41,000 fewer positions between 1985 and 1995, largely due to automation (ATMs).
- The first ATM was introduced in 1971, leading to 11 billion transactions by 2000.
Merging of Class Roles
- New categories of technicians have emerged, blurring the lines between traditional white-collar and blue-collar roles.
- Workers in technical fields may dress like white-collar professionals but engage in practical tasks with tools and machinery.
- A shift towards a service sector job market includes rising numbers of college-educated individuals in traditionally blue-collar roles—12% in 1973 to 36% by 2000.
Impact of Economic Restructuring
- Intermediate classes have been significantly affected by globalization and technological advancements, leading to a restructuring of jobs and wages.
- Upper-middle-class individuals generally prospered, while working-class members faced economic challenges.
- The Great Depression and World War II stimulated economic changes and job creation in America, leading to the expansion of the middle class during the post-war years.
Post-1973 Economic Challenges
- The 1973 OPEC oil embargo marked a significant shift, revealing American dependency on global markets.
- This event initiated a trend toward economic restructuring, altering the traditional stability of job markets.
Shrinking Middle-Class Dynamics
- From the mid-1970s, a notable reduction in middle-class stability began, with many members pushed into low-wage service jobs or elevated to professional roles.
- Income inequality has widened, creating a two-tiered society where the affluent prosper and the economically vulnerable struggle.
- The real average hourly wage for production workers stagnated post-1973, dropping to $17.42 in 2007 from earlier peaks.
Job Market Polarization
- Job growth has bifurcated, with an increase in high-paying professional roles and low-wage service jobs; middle-income positions have declined.
- Many new jobs created are low-skill and low-paying, especially in the service sector, which now comprises over two-thirds of American jobs.
- Declining industries and economic shifts have led well-paid blue-collar workers to find themselves in lower-paying, precarious employment situations.
Economic Insecurity Across Classes
- Economic insecurity affects a wide range of workers, from traditional working-class individuals to lower-middle and even upper-middle-class families.
- Families often rely on dual incomes just to maintain their previous standard of living—one-income middle-class families are now rare.
- A significant portion of the workforce (about 30%) are now contingent workers, involved in temporary or part-time roles instead of stable full-time employment.
Technological Advancements and Labor Displacement
- Historical trends show that technological innovations tend to displace workers in manufacturing, a trend continuing today with computers and robots.
- Economic conditions may appear positive overall, yet many workers experience stagnation or decline in living standards, illustrating a disconnect between economic indicators and day-to-day realities for the middle class.### Automation and Workforce Changes
- Automation in automobile assembly lines has replaced many manual labor jobs, enhancing efficiency.
- From 1980, automobile production in North America rose by 65%, while the workforce in the industry shrank by 34%.
- The transition towards automation has impacted not only laborers in unskilled positions but also skilled production workers.
- Jeremy Rifkin forecasts that blue-collar jobs will largely disappear due to technological advancements by the mid-21st century.
- Sheila McConnell regards computers as the most significant technological advancement since steam power, altering industrial production fundamentally.
Globalization and Outsourcing
- Large corporations shifted from manufacturing to outsourcing, becoming primarily marketing organizations with overseas production.
- Electronic communication enables management of global operations from central locations, enhancing international capital movement.
- This globalization facilitates production anywhere and sale everywhere, increasing competition across borders.
- American businesses face competition from international workers and corporations, leading to a more interconnected global economy.
Transnational Corporations
- Corporations like General Electric and ExxonMobil operate globally, often with revenue predominantly generated outside the U.S.
- Companies like Procter and Gamble derive over half of their revenue from international markets.
- Familiar American brands operate majorly abroad, indicating a significant shift in the nature of these corporations to "world firms."
- Japanese and other foreign corporations also engage heavily in global trade and manufacturing using various international locations.
Workforce Restructuring Models
- Robert Reich categorizes the U.S. workforce into three groups based on globalization: symbolic analysts, routine production workers, and routine personal service workers.
- Symbolic analysts, often skilled professionals, thrive in the global economy, making up about 30% of U.S. jobs and commanding high salaries.
- Routine production workers, characterized as traditional blue-collar laborers, are losing ground, comprising less than 20% of the workforce.
- Routine personal service workers do not compete internationally but face competition from automation and are experiencing wage stagnation.
Decline of Labor Unions
- Labor unions peaked in the mid-20th century but have since declined dramatically, with current union membership below 12%.
- Factors contributing to the decline include a shift from manufacturing to service industries, globalization, and antilabor policies.
- Unions historically benefited all workers by maintaining competitive wages, a benefit diminished by declining membership.
Downsizing, Outsourcing, and Offshoring
- Downsizing is a strategy used by corporations to improve efficiency by reducing their workforce, affecting both blue-collar and white-collar jobs.
- Many displaced workers face job loss, retraining issues, and downward mobility, especially after economic downturns.
- Outsourcing involves subcontracting production tasks to lower-cost companies, typically abroad.
- Offshoring is a growing trend where skilled white-collar jobs are increasingly sent overseas to capitalize on lower labor costs.
Demographic Changes and Immigration
- Immigration to the U.S. has increased dramatically, reminiscent of late 19th and early 20th-century patterns.
- The economic impact of immigration on the labor market, particularly concerning working and middle-class dynamics, remains a topic of contention among social scientists.
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Explore the nuances of the American middle class through this quiz. Delve into percentage income ranges, key categories, and the historical transitions that shaped society's class structure. Test your knowledge on what defines a postindustrial society.
