SOCIOL 1000 Chapter Notes - Chapter 6: Median Income, Great Compression, Economic Inequality
Document Summary
Economy/society - bruce g carruthers and sarah l. babb. The invisible hand (adam smith 1776): a system in which people can pursue their own individual self-interest will ultimately be beneficial to society as a whole. Situation of poverty and the prospect of social mobility provides an incentive for poor to work hard and do better for themselves (possibility of wealth is the carrot and threats of poverty are the stick) Free markets can eliminate racial, gender, and other discrimination (no need for affirmative action) Economic inequality: differences between the economic circumstances of individuals in a given society. Income: flow of resources received over a period of time (e. g. , wages and salary, interest income: wealth inequality. Wealth: assets (i. e. , property you own) minus liabilities (debts you owe) The great compression: the period from about 1933 to about 1979 when income inequality in the united states was greatly reduced and the middle class was greatly expanded.
