1. SOCIAL AND ECONOMIC ISSUES
The USA is arguably the richest country in the world, where many have worked hard to make money and achieve the
American Dream. However, this is not true for all Americans. For many, the reality is a life of poverty and
discrimination reliant on welfare in a country where a capitalist ideology favours a strong independent work ethic and
minimum state intervention. As a Result, the USA is a very unequal country especially among the different family
types and ethnic groups.
1 – Wealth Inequality in the USA (poverty) (economic)
In the USA the official measure of poverty is the Federal
Poverty Level (FPL). It is estimated that around 40% of
Americans find themselves below the poverty level at
some point within any ten year period.
The rate of poverty in the USA has increased consistently
since 2007. The main reason poverty reached a record
high of 15.3% in 2010 is the credit crunch.
POVERTY RATES BY ETHNIC GROUP
YEAR
TOTAL POVERTY
BLACKS
ASIAN
HISPANIC
WHITE
2010
15.3%
27.4%
12.1%
26.6%
9.9%
2009
14.3%
25.8%
12.1%
25.3%
9.4%

2. Blacks and Hispanics are more likely to live
Why?
in poverty than white people in the USA.
There are distinct reasons why Blacks and
Evidence – The table on the previous page
Hispanics are more likely to live in poverty.
shows that although poverty has increased
for white, blacks and Hispanics, Whites are

Long term discrimination has
created a black underclass
still less likely to be poor.

Blacks in poverty tend to be single
parent female headed households

Blacks are more likely to live on
welfare, drop out of high school

Blacks are more likely to be
unemployed

Hispanics are more likely to be
poor as many are immigrants

Many work in low paid jobs
2 – Employment Inequality in the USA (economic)
Unemployment is one of the major causes of
poverty and its effects are not shared equally. All
ethnic groups saw a sharp rise in unemployment
levels between 2007 and 2010 as the worldwide
recession took effect.
African Americans face the biggest challenge when
it comes to employment as in 2012 a record 16% of
blacks were unemployed.
Unemployment rates by race %
2000
2003
2008
2010
White
3.5%
5.4%
4.9%
8.7%
Black
7.8%
10.8%
8.9%
14.7%
Hispanic
5.9%
8.2%
7.7%
12.2%
Asian
n/a
n/a
3.7%
8.2%

3. Blacks and Hispanics are most likely to be
unemployed in the USA, with blacks almost
twice as likely to be unemployed as whites
Evidence – The table on the pervious page
shows that even though all groups have
suffered from an increase in unemployment
that black and Hispanic groups have the
highest levels of unemployment.
Why?



Blacks and Hispanics in work
tend to work in lower skilled
marginal ‘burger flipping’ jobs,
these are insecure work and
have high turnovers in staff
The is a link between education
and unemployment – black and
Hispanics have a higher % of
high school drop-outs (13.9% of
blacks drop out compared to only
7.8% of whites)
Discrimination is also a factor
Activities
Q1 – Why is the American Dream not a reality for millions of Americans?
Q2 – How is poverty measured in the USA? Why has poverty increased in recent years?
Q3 – Write a PEEL paragraph explaining why POVERTY is an area of inequality in the USA
Q4 – What evidence is there that Black suffer the most when it comes to unemployment?
Q5 – Write a PEEL paragraph explaining why EMPLOYMENT/UNEMPLOMENT is an area of inequality in the USA

4. 3 – Health Inequality in the USA (social)
The Cost of Healthcare
The USA does not have a National Health Service
In the USA healthcare is a very controversial
like the UK. In the USA people have to take out
issue – WHICH WE WILL LOOK AT IN
private insurance for themselves and their families
DETAIL LATER ON.
(much like you would take out pet insurance in the
UK). Alternatively, some employers will pay for
However, there are large inequalities in
medical insurance for their workers as part of
Health in the USA, for 2 main reasons:
their benefits.
1 – The Cost of Healthcare
There is some government help for those who can’t
2 – General Health
afford medical insurance, but WE WILL LOOK AT
THAT LATER.
Health Inequality in the USA
HEALTH INDICATOR
BLACK
HISPANIC
WHITE
NO HEALTH INSURANCE
21%
32.4%
12%
LIFE EXPECTANCY
MEN: 70YRS
WOMEN: 75YRS
MEN: 75 YRS
WOMEN: 80 YRS
MEN: 77 YRS
WOMEN:82 YRS
INFANT MORTALITY
RATE
13.3
5.5
5.6
Evidence – the table above shows that blacks and
Hispanics are less likely that white to have medical
insurance.
WHY? – it’s connected to the two other inequalities
that we studies before – poverty and unemployment:
blacks and Hispanics experience higher levels of
unemployment and poverty SO they are less likely to
be able to AFFORD healthcare.
They are also LESS likely to work in jobs that pay
for healthcare
= inequality in terms of the cost of healthcare.
General health
The table above also shows that blacks and Hispanics have lower life expectancies than whites.
WHY?
Again this may be connected to poverty, blacks and Hispanics are more likely to suffer from poverty and this can
have an impact on health i.e. what you eat etc.
There are also other factors – Firstly the leading cause of death for young black males is homicide, for Hispanics
homicide is the 2nd biggest cause of death.
Blacks and Hispanics both have higher rates of AIDS/HIV – 50% of all AIDS cases in the USA are black people,
20% are Hispanics
Diet is also an issue, Blacks and Hispanics have higher rates of obesity due to diet, this leads to diabetes and
strokes.

5. 4 – Education Inequality in the USA (social)
A good education is important for anyone wishing to improve
their chances of making money. Lack of education can lead to
unemployment –there is a clear link between level of education
and income/employment
Asian and white Americans tend to do well in the US educational
system, because they often live in areas with ‘good’ schools and
can afford to pay for higher university.
(Most higher education is not free in the USA, this means that
it costs to go to university or college – and can be very
expensive, it’s estimated to cost approx. $70,000 to train as a
doctor)
Drop-out rate by race – (pupils not completing a high school education)
Year
Hispanic
Black
White
2000
27.8%
13.1%
6.9%
2005
22.4%
10.4%
6%
2010
18%
10%
5%
Evidence- the table shows that both Black and Hispanics are more
likely not to complete even a high school education that white.
Why?
EM’s are more likely to suffer in education than whites. EM’s are
more likely to go to inner city ‘ghetto’ schools – i.e. the
‘blackboard jungle’ image of low academic success and high
drop-out rates.
Disadvantaged because:
 Poor condition of schools – 59% of schools which had
over 50% ethnic monitories were in need of repair
 Lack of equipment
 Teacher shortages esp. ethnic minority teachers
 Poor standard of teachers
 Negative attitude to education
18% of Hispanics drop out of high school compared to only 5% of
whites.
Higher education is not free - college is expensive, so many don’t see
the point – can cost up to $70,000 to qualify as a doctor in
the USA – so many can’t afford to go to college so what’s the
point in trying hard at school?
Activities
1 – Write a PEEL paragraph explaining that the cost of Healthcare creates inequality in the USA
2 – Write a PEEL paragraph explain why ethnic minorities have a lower life expectancy than whites
3 – Why do whites and Asians do well in the US education system?
4 – Why might some Minorities be put off from going to college?
5 – Write a PEEL paragraph explaining that Education is an area of inequality in the USA

6. 5 – Housing Inequality in the USA (social)
Access to quality housing is linked to income. Blacks
and Hispanics have, on average, lower income and
therefore many live in poorer areas that Whites.
There are wealthy Suburbs, normally outside of the
cities with large houses, trees, well-funded schools
and plenty of facilities.
Poor inner city slum areas which are run down are
known as ghettos. It’s estimated that about 9.3
million Americans live in poor quality housing. The
Bronx in New York City is a famous ghetto.
Ghettos feature:

High unemployment
Why do areas become run down in the USA?

High levels of crime
One way for city authorities to deal with these problems is

Lack of facilities
through higher spending i.e. on repairs, better street lighting,

Such as shops or parks
and more police etc. to make areas more liveable.
HOWEVER – inner city areas have lower tax revenue because
of the white flight and black middle class flight (means these
wealth groups move out to the suburbs leaving the inner cities
with poor groups and little tax)
This lack of tax means it’s difficult for cities to invest and
improve inner city housing conditions.
Home ownership in the USA
YEAR
2004
BLACK
49.1%
HISPANIC
48.1%
WHITE
72.8%
2009
46.2%
48.4%
71.4%
Evidence – the table above shows that White are more likely to own their own home than Black or Hispanics, and that less
that 50% of Black and Hispanics own the house they live in.
Why?




Low income makes it difficult to get a mortgage
Racial discrimination also makes it difficult to get a mortgage
Most likely to live in the projects as prices too high elsewhere
Hispanics are 2 times more likely to have problems with the quality of their homes than whites due to
poor quality
Issue – this has led to unofficial SEGREGATION = rich whites living in all-white in Suburbs, Rich blacks living in other
suburbs and poor minorities left in inner city slums. This could have a serious social impact in the USA in years to come.

7. 6 – Crime and the LAW Inequality in the USA (social)
When you compare the ethnic makeup of the population of the USA with that of the prison population it becomes
clear that there is an ethnic imbalance. The connection between a person’s ethnic background and their
involvement in criminal activity has long been debated in the USA. Blacks and Hispanics are more likely to be
involved in crime than other ethnic groups because crime is concentrated in inner city areas.
The main Reasons Black and Hispanics
are involved in crime are:

High unemployment

Family breakdown

Street gangs

Drugs

High levels of poverty
Due to the high level of poverty and
unemployment in Ethnic
neighbourhoods the money that can be
made from crime is attractive to the
young unemployed.
Crime inequality FACTS
A black man is more likely to go to jail that
college in the USA

Blacks are the group most likely to be
victims of crime

Nearly 50% of all inmates on death row are
black

Blacks are 8 times more likely to go to jail
than white

38% of the jail population in the USA is
black, even though blacks make up only 13%
of the population!
Hispanics


Less likely to be a victim of crime than
blacks

Family influence and a strong family unit
means that a large numbers of Hispanics
work hard to avoid crime

More positive role models I.e. Jesus!
Activities
1 – Why are Ethnic minorities more likely to live in run down areas than white?
2 – What are the main features of ghettos? What’s the difference between a ghetto and a barrio?
3 – Explain why some areas in the USA become run down?
4 – Write a PEEL paragraph explaining why HOUSING is an area of inequality.
5 – Why are blacks more likely to be involved in Crime? What evidence is there that inequality exists in crime?
6 - EXAM STYLE QUESTION - Describe, in detail, social and economic inequalities that exists in the USA
(NAT 4 = 4 marks)
(NAT 5 = 8 Marks)