The Stratification of the Upper-class

Social stratification breaks society into different groups according to common social attributes (race, wealth, etc.). The class system is a common form of stratification found in most developed countries, including the United States. The major factor is socioeconomic status, in which the upper-class have more money and status, while the lower-class has less. Recently in the United States and around the world, there has been a growing gap between the two; the rich are getting richer, and the poor poorer. This has been a huge issue in our country and has left many people blaming the rich, who make up just 1% of the population, for many of the country's problems. While many of their arguments are valid, some of the people that they blame are innocent of any wrong doing. It is mostly the top 0.5% that are causing the problems. Thus, there is even stratification within the wealthiest in the nation.

In a blog post, an anonymous investment manager, who works exclusively with 1%, notes the difference between those in the bottom half of the 1% and those in the upper half. “The 99^th to 99.5^th percentiles largely include physicians, attorneys, upper middle management, and small business people who have done well.” The upper half, however, is considerably different. “Membership in [the upper half] is likely to come from being involved in some aspect of the financial services or banking industry, real estate development involved with those industries, or government contracting.” Though well off, those in the lower half aren't free from financial worries. “Most of those in the bottom half of the top 1% lack power and global flexibility and are essentially well-compensated workhorses for the top 0.5%, just like the bottom 99%.” So, we can see clearly the further stratification of the upper-class.

The growing income gap in America is likely the most important issue we are facing and has ramifications for all of us. As the anonymous banker states, “In my view, the American dream of striking it rich is merely a well-marketed fantasy that keeps the bottom 99.5% hoping for better and prevents social and political instability. The odds of getting into that top 0.5% are very slim and the door is kept firmly shut by those within it.”

Citations:

http://sociology.ucsc.edu/whorulesamerica/power/investment_manager.html

http://www.uri.edu/artsci/ecn/starkey/ECN342/income_inequality_2005.pdf