Sociology Chapter 4: Upper Class & Power Elite

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.