10.2 Social stratification and mobility in the united states  (Page 2/18)

For sociologists, too, categorizing class is a fluid science. Sociologists general identify three levels of class in the United States: upper, middle, and lower class. Within each class, there are many subcategories. Wealth is the most significant way of distinguishing classes, because wealth can be transferred to one’s children, perpetuating the class structure. One economist, J.D. Foster, defines the 20 percent of America’s highest earners as “upper income,” and the lower 20 percent as “lower income.” The remaining 60 percent of the population make up the middle class. But by that distinction, annual household incomes for the middle class range between $25,000 and $100,000 (Mason and Sullivan 2010). How can a person earning $25,000 a year have the same standing as someone earning $100,000 a year—four times as much?

One sociological perspective distinguishes the classes, in part, according to their relative power and control over their lives. The upper class not only have power and control over their own lives, their social status gives them power and control over others’ lives as well. The middle class don’t generally control other strata of society, but they do exert control over their own lives. In contrast, the lower class has little control over their work or lives. Below, we will explore the major divisions of American social class and their key subcategories.

Upper class

The upper class is considered America’s top, and only the powerful elite get to see the view from there. In the United States, people with extreme wealth make up one percent of the population, and they own one-third of the country’s wealth (Beeghley 2008).

Money provides not just access to material goods, but also access to power. America’s upper class wields a lot of power. As corporate leaders, their decisions affect the job status of millions of people. As media owners, they shape the collective identity of the nation. They run the major network television stations, radio broadcasts, newspapers, magazines, publishing houses, and sports franchises. As board members of the most influential colleges and universities, they shape cultural attitudes and values. As philanthropists, they establish foundations to support social causes they believe in. As campaign contributors, they influence politicians and fund campaigns, sometimes to protect their own economic interests.

American society has historically distinguished between “old money” (inherited wealth passed from one generation to the next) and “new money” (wealth you have earned and built yourself). While both types may have equal net worth, they have traditionally held different social standing. People of old money, firmly situated in the upper class for generations, have held high prestige. Their families have socialized them to know the customs, norms, and expectations that come with wealth. Often, the very wealthy don’t work for wages. Some study business or become lawyers in order to manage the family fortune. Others, such as Paris Hilton, capitalize on being a rich socialite and transform that into celebrity status, flaunting a wealthy lifestyle.