Sociology Chapter 4: Upper Class & Power Elite

Questions and Answers

What characterizes the upper class?

Great wealth (correct)

Incomes below $250,000

Critical decision-making positions (correct)

Social exclusion (correct)

What percentage of US households have incomes of $1 million or more?

0.2%

Name two types of individuals who earn over $1 million.

CEOs and celebrities

From where do most rich Americans get their income?

Their assets Signup and view all the answers

Who are considered the 'super rich'?

Individuals with wealth in the billions Signup and view all the answers

All wealthy individuals are of the 'super rich' class.

False Signup and view all the answers

What is conspicuous consumption?

The rich purchasing more than they can use or need Signup and view all the answers

The __________ class is often closed to outsiders and maintains a class awareness.

rich Signup and view all the answers

Match the following concepts with their definitions:

Conspicuous Consumption = The rich purchasing more than they can use Conspicuous Leisure = Engaging in activities beyond what most can afford Inheritance = Wealth passed down through generations Self-Made Rich = Individuals who gain wealth through their own efforts Signup and view all the answers

What is the critical factor often cited for entering the upper class?

Inheritance Signup and view all the answers

Wealth and power always exist together.

False Signup and view all the answers

Study Notes

Power Elite vs. Upper Class

Upper class refers to those with significant wealth (capitalist class).
Power elite comprise individuals in critical decision-making roles affecting society.
Wealth and power are related but distinct; wealth signifies upper class status, while power indicates authority and influence.

The Upper Class: Income

Income includes wages and salaries; "rich" individuals earn $1 million or more.
Only about 0.2% of U.S. households fall into this category.
Less than 2% of households earn above $250,000 annually.

Types of $1 Million+ Earners

Top corporate executives (CEOs) earn significantly more than foreign counterparts.
Celebrities such as entertainers and professional athletes also represent this category.
Notable figures include former presidents and influential authors.

The Upper Class: Wealth

Wealth comprises assets, savings, and investments.
Most wealthy individuals generate income primarily from their assets rather than job salaries.
Unequal distribution of wealth in the U.S. has existed since the mid-1800s.

The Upper Class: The "Super Rich"

Comprises individuals with billions in wealth, forming a specialized, isolated class.
Examples include Bill Gates ($54 billion), Warren Buffet ($45 billion), and Larry Ellison ($27 billion).

The Upper Class: The Rich

Represent a closed, exclusive culture distinct from outsiders.
Utilize class awareness to maintain social distinctions and emphasize historical values.
Social seclusion makes them challenging to study, limiting sociological insights.

The Upper Class: The "Old" Rich

Refers to family wealth passed down through generations.
Notable "old rich" families include Rockefeller, Carnegie, Vanderbilt, and Ford.

The Upper Class: The "New" Rich

Comprises individuals who have newly acquired wealth, often from modern industries such as technology.
Examples include self-made billionaires like Bill Gates and Mark Zuckerberg.

Privileges of Wealth: Material Consumption

Robert Frank suggests wealthy individuals have created their societal bubble ("Richistan") due to their detachment from mainstream culture.
Thorstein Veblen identifies phenomena of conspicuous consumption and conspicuous leisure among the rich, highlighting excessive consumption and leisure activities beyond common means.

Privileges of Wealth: Beyond Consumption

Wealth provides relief from daily life hassles, different societal standards, social esteem, enhanced security, and increased opportunities.

Pathways to the Upper Class

Wealth acquisition stems from both inheritance and personal effort.
Studies show that half of the wealthiest individuals in each generation have newly entered the upper class.
The upper class remains limited, with minimal mobility from lower classes to upper tiers.

The Power Elite

Comprises individuals in influential roles within economic, political, and social organizations.
Wealth and power can exist independently but are frequently interconnected.
The relationship between wealth and power is intricate and cyclical, with sociologists exploring how the upper class acts as a ruling entity.

Description

Explore the distinctions between the upper class and the power elite in this flashcard set. Learn how wealth and power interact within society and the implications of their differences for social structure. Perfect for sociology students looking to deepen their understanding of class dynamics.