What is a definition of poverty. Different definitions of poverty exist, and they are often connected to different aspects of the economy. But all they have one common feature: the quality of the products and services is often lower, and the number of people living on less than $1 a day’ is often greater. The word “poor” is most often understood as the category consisting of the number of people below the poverty line.
Nowadays, many countries consider poverty to be the mother of terrorism. The gap between rich and poor people has widened considerably, the disparity between the positions of the middle class and the wages of other workers has increased. In 2010, the incomes of the middle class were almost halved compared to the incomes of the bottom half of the population. The share of income from property is lower, and the share of social benefits is lower. The level of social stratification of the population is lower. In Europe, the middle class is divided into the upper and middle classes, and the upper class consists of representatives of the middle class. These are the basic components of the population’s social belonging.
There are several categories of the middle class in the social hierarchy: the upper (manager) and the middle (service) class, the upper (managerial and administrative) class is differentiated from the lower class by high social mobility. The level of social mobility is less significant in the United States than in the European countries. But the trend of their growth in the second half of the 20th century was almost halved compared to the trend of the lower class’s growth.
The trends of economic inequality in the United States were more pronounced than in England and France. In the 1950s, the real wages of the middle class in the US were three times higher than the salaries of the lowest class. Wages and pensions are on the average 10% higher than incomes of other classes. But the real means of income inequality is much lower.
The dominant economic position belonged to the owners of large corporations whose number did not exceed 1% of Americans. As of the early 20th century, the United States had the highest indicator in the world. The share of the middle class in the American population was lower than in England and France. But the share of the latter was much higher. In comparison with England, France had the highest indicator. In the European countries of the second half of the twentieth century, the United States was much higher.
Mention in the income inequality essay that the elite of the independent republic actively substantiated the idea of the beneficial impact of property differentiation on the economic development of the country, because, in the process of social stratification, it helped to restrain the powerful interests of the upper class.
The first liberal packages of civil and political laws (1687-1775) provided the main way of restricting property inequality. The remnants of the free white population were gradually integrated into the controlled economy of the state and replaced by the interests of the upper class.
Contradictory point of view of the middle class in the form of which it is often associated with the activity of financiers: “In France, the middle class is represented by the princes and the upper aristocracy in the old way of life. In England, the middle class is the royalty of the country.”
In France, the middle class is depicted by the nobility in the role of the aristocracy in the Old World. In England, the feudal elite originated. The subject of the struggle for the possession of the middle class was established on the basis of the aristocracy’s struggle for economic development, primarily in the interests of the crown.
Keeper which separates the middle class from the elite, whether these are social, professional or religious movements, whether they are associated with the success of the economy or not.
The activity of the middle class in the social sphere is manifested, in particular, in the struggle for social status which is expressed in the activity of representatives of the middle class in the formation process of economic relations, for example, by means of taxation, public spending, trade in the market, etc.
In the cultural sphere, the middle class is the custodian and distributor of values, norms, traditions, laws of society. Also, it is the source of cadres of officials and managers of different ranks – both for the state apparatus and for business. Self-regulation of civil society is based on the activity of representatives of the middle class too. This role is called the function of the administrative-executive regulator.
In order to identify the middle class, along with the size of incomes, their structure should be taken into account. The prevalence of some source of income in the household budget means the size of household expenditures, the amount of income from property and employment, income from self-employment.
The following pattern can be traced in an income inequality research: the labor receipts dominate in the structure of the incomes of the middle class. Work activity determines the social status of representatives of this stratum.