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Stratification, Inequality, and Social Class in the U.S.
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Sociology Textbooks Boundless Sociology Stratification, Inequality, and Social Class in the U.S. Social Class
Sociology Textbooks Boundless Sociology Stratification, Inequality, and Social Class in the U.S.
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Sociology
Concept Version 11
Created by Boundless

Property

Property is the total of one's possessions and, therefore, may be a better measure of social class than income.

Learning Objective

  • Describe the various forms of property - private, public and collective - and their functions


Key Points

    • Property goes beyond income as a measure of social class as it reflects the accumulated wealth (e.g., homes, stocks, bonds, savings) in addition to one's earning potential.
    • Private property is distinguishable from public property and collective property, which refers to assets owned by a state, community, or government rather than by individuals or a business entity.
    • Economic liberals consider private property to be essential for the construction of a prosperous society.
    • Socialists view private property relations as limiting the potential of productive forces in the economy.
    • Libertarians believe that private property rights are a requisite for rational and efficient economic calculation.

Terms

  • economic liberals

    Economic liberalism is the ideological belief in organizing the economy on individualist lines, such that the greatest possible number of economic decisions are made by private individuals and not by collective institutions.

  • libertarian

    A believer in a political doctrine that emphasizes individual liberty and a lack of governmental regulation and oversight both in matters of the economy ('free market') and in personal behavior.


Examples

    • An example of private property stimulating economic growth is when a homeowner makes home improvements to increase the value of their home, when in a similar situation a tenant in a government-owned building would not invest money in home improvements.
    • An example of private property stimulating economic growth is when a homeowner makes home improvements to increase the value of their home, when in a similar situation a tenant in a government owned building would not invest money in home improvements.
    • Socialist policies benefiting national economic growth may include the protection of natural resources to secure longterm access to land, oil, or fresh water, as opposed to private corporation's solely short term interest in exploiting natural resources for immediate profit.

Full Text

Property refers to the sum total of one's possessions, as well as their regular income. It goes beyond income as a measure of social class, as it reflects wealth accumulated (e.g., homes, stocks, bonds, savings) in addition to one's earning potential. Property is a better overall measure of social class than income, as many individuals who are considered wealthy actually have very small income, and those with less property tend to have less power and prestige.

Income

Income is one form of property, and contributes significantly the measures of wealth. In the United States, the top 1% of the population earns a disproportionate amount of national income, coinciding with their position at the top of the social class hierarchy.

Private property is the ownership, control, employment, ability to dispose of, and bequeath land, capital, and other forms of property by persons and privately owned firms. Private property is distinguishable from public property and collective property, which refers to assets owned by a state, community, or government rather than by individuals or a business entity. The concept of property is not equivalent to that of possession. Property and ownership refer to a socially constructed circumstance conferred upon individuals or collective entities by the state, whereas possession is a physical phenomenon.

Economic liberals consider private property to be essential for the construction of a prosperous society. They believe private ownership of land ensures the land will be put to productive use and its value protected by the landowner. If the owners must pay property taxes, this forces the owners to maintain a productive output from the land to keep taxes current.

On the other hand, socialists view private property relations as limiting the potential of productive forces in the economy. They believe private property becomes useless when it concentrates into centralized, socialized institutions based on private appropriation of revenue until the role of the capitalist becomes redundant.

Lastly, libertarians believe that private property rights are a requisite for rational economic calculation, and that without clearly defined property rights, the prices of goods and services cannot be determined in an "efficient" manner, making the most efficient economic calculation impossible.

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