In 2012, the poverty threshold in the United States for a family of four (i.e., two adults and two children) was set at $23,283, but the Basic Economic Security Tables Index measured that a family of four needs $67,920 per year to meet the basic needs of the family (Mooney, Know & Schacht, 2014, p. 176). However, even though the poverty level was approximately three times lower than it should have been, 15% of Americans lived below the poverty line in 2012 (Mooney et al., 2014, p. 181).
Poverty is not the only socioeconomic problem because economic inequality is constantly increasing. In 2011, the top 1% earners in the United States earned more than $598,570, and their earnings were 134% higher in 2011 compared to 1979 because they are consistently increasing (Mooney et al., 2014, p. 180). In contrast, the earnings of the bottom 90% earners had increased only by 15% between 1979 and 2011 (Mooney et al., 2014, p. 180). Therefore, the existing gap between the top earners and the lowest earners in the United States keeps increasing with every year.
Poverty and economic inequality have a significant effect on both individuals and society as a whole. In terms of personal well-being, studies showed that negative income shocks (e.g., unemployment) increase stress hormone levels and symptoms associated with mental health problems such as depression (Haushofer & Fehr, 2014, p. 864). If poverty and economic inequality affect the psychology of individuals, they also affect society as a whole in several ways.
According to Mooney et al. (2014, p. 138), economic and other types of social inequality are considered to be the causes of criminal behavior. The growth of the prison population in the United States between 1970 and 2005 exceeded the growth of the general population, so the United States population accounts for 5% of the world’s population, but the country hosts 25% of the world’s prison population (Mooney et al., 2014, p. 129). As long as economic inequality and other social inequalities exist, they will continue to contribute to the development of criminal subcultures.
In addition to criminal behavior, poverty and economic inequality have been associated with civil wars and severe social conflicts within countries (Mooney et al., 2014, p. 190). Although the probability of a civil war in an industrialized country like the United States is low, several activist groups are currently protesting against the economic inequality. Occupy Wall Street (OWS) is an example of a decentralized protest against greed, corruption, and corporate influence on the government (Mooney et al., 2014, p. 203). The OCW protest cannot be classified as a severe or armed social conflict, but it is unknown how it will continue to develop if the disparity between rich and poor continues to grow.
A nation’s wealth is a critical factor for protecting citizens from natural disasters, but the differences in socioeconomic statuses between individuals can also determine whether they have the time and energy to protect their loved ones in crisis situations (Mooney et al., 2014, p. 190). Individuals from poor socioeconomic backgrounds may also experience political alienation, which means that they have less influence over the government than rich citizens (Mooney et al., 2014, p. 190).
There are numerous social consequences of poverty and social inequality. In order to assist individuals living in poverty, the United States has several programs in place, including housing assistance, food assistance, supplemental security income, and various others. However, assisting the poor does not resolve economic inequality as one of the causes of social problems, so that issue needs to be dealt with separately in order to improve the well-being of society.
References
Haushofer, J., & Fehr, E. (2014). On the psychology of poverty. Science, 344(6186), 862-867.
Mooney, L. A., Know, D., & Schacht, C. (2014). Understanding social problems (9th ed.). Stamford, CT: Cengage Learning.
