Traditional economics are instrumental to our understanding of the world and the economy that runs it. However, as authors George A. Akerlof and Robert Shiller attest in their book Animal Spirits, a major economic influencer is missing if we only look at traditional economics to find the problems the economy faces. That missing element is animal spirits, which obviously inspired their books title. The so-called animal spirits consist of five major drivers; confidence, fairness, corruption, money illusion, and stories. Essentially, the authors are arguing that tradition economics look at people as completely rational beings, which is simply a fairytale. Humans have emotions, and we can be irrationally influenced by these emotions. The authors argue that the irrationalities that humans possess are the cause of many of the problems we face in the world of economics today, including the recent recession of 2008, and in the staggering statistics behind poverty in minorities.
One of the most thought provoking chapters in this book was chapter thirteen, titled “Why Is There Special Poverty among Minorities?” This chapter tackles the issues of why in a world of supposed equality, there still seems to be a troubling level of inequality, specifically with African-Americans. The facts and statistics are shocking and horrific. While only about 10% of whites and Hispanics are unemployed, 25% of African-Americans are without jobs (Shiller 163). “Appallingly, the lifetime chances of a black male youth entering prison exceed 25% (Shiller 158)”. The poverty rate of African-Americans is triple that of whites (Shiller 157). From simply observing those numbers, it is easy to see that something is hindering African-Americans, and animal spirits hel...
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...al statistics between blacks and white can be attributed to the animal spirits, specifically confidence, fairness and stories. These animal spirits have served as explanations for many of the problems the world has faced, especially in terms of economics. Recessions have taken place due to lack of confidence, or as in the recent housing bubble crash, overconfidence. Unemployment can take place due to perceptions of fairness. And, as seen in Boyz in the Hood, stories can cause people to fall into unfortunate situations. When we account for animal spirits, we can start to find reasons behind why certain occurrences take place. In using animal spirits, it is important to remember that humans are not rational beings. We have emotions, passions and interests that can cause us to act irrationally. As irrational beings, we need animal spirits, not traditional economics.
One of the most critical observations about the state of our sociological health is observed by MacGillis of the Atlantic’s article entitled “The Original Underclass”. That is that the social breakdown of low-income whites began to reflect trends that African American’s were primary subjects of decades ago such as unemployment, and drug addiction.
While the formal abolition of slavery, on the 6th of December 1865 freed black Americans from their slave labour, they were still unequal to and discriminated by white Americans for the next century. This ‘freedom’, meant that black Americans ‘felt like a bird out of a cage’ , but this freedom from slavery did not equate to their complete liberty, rather they were kept in destitute through their economic, social, and political state.
Although there were numerous efforts to attain full equality between blacks and whites during the Civil Rights Movement, many of them were in vain because of racial distinctions, white oppression, and prejudice. Anne Moody’s Coming of Age in Mississippi recounts her experiences as a child growing up in Centreville, Mississippi. She describes how growing up in Mississippi in a poor black family changed her views of race and equality, and the events that took place that changed her life forever. She begins her story at the tender age of 4, and describes how her home life changed drastically with the divorce of her parents, the loss of her home, and the constant shuffle from shack to shack as her mother tried to keep food on the table with the meager pay she earned from the numerous, mostly domestic, jobs she took. On most days, life was hard for Anne, and as she got older she struggled to understand why they were living in such poverty when the white people her mother worked for had so many nice things, and could eat more than bread and beans for dinner. It was because of this excessive poverty that Anne had to go into the workforce at such an early age, and learn what it meant to have and hold a job in order to provide her family. Anne learned very young that survival was all about working hard, though she didn’t understand the imbalance between the work she was doing and the compensation she received in return.
In her book, Unequal Childhoods: Class, Race, and Family Life, Annette Lareau argues out that the influences of social class, as well as, race result in unequal childhoods (Lareau 1). However, one could query the inequality of childhood. To understand this, it is necessary to infer from the book and assess the manner in which race and social class tend to shape the life of a family. As the scholar demonstrates, each race and social class usually has its own unique way of child upbringing based on circumstances. To affirm this, the different examples that the scholar presents in the book could be used. Foremost, citing the case of both the White and the African American families, the scholar advances that the broader economics of racial inequality has continued to hamper the educational advancement and blocks access to high-paying jobs with regard to the Blacks as opposed to the Whites. Other researchers have affirmed this where they indicate that the rate of unemployment among the African Americans is twice that of the White Americans. Research further advances that, in contrast to the Whites, for those African Americans who are employed, there is usually a greater chance that they have been underemployed, receive lower wages, as well as, inconsistent employment. This is how the case of unequal childhood based on race comes about; children from the Black families will continue residing in poverty as opposed to those from the white families.
In the United States black Americans are disproportionately affected by the perils of poverty, such as frequent acts of violence, drugs, failing school districts, and numerous other crimes against person and property. Consequently, in order to address poverty, and the dangers associated, one has to understand the root of poverty. Mos Def examines the way American business intentionally denigrates the working class to demonstrate the exploitation and social control that continuously decimates the working poor’s hope.
In a perfect world, we would not have racial tensions and we would all sing Kumbaya together, however, we do not live inside a perfect world. Racial injustice that relates to incarceration in the United States, specifically to those who are African-Americans, is a literal fabrication of our imperfect world and details the thinly veiled allegory of our social apartheid. According to author Glenn Loury, this aspect of our nation’s prison system is the most damaging to our African-American community, wherein said group are being racially profiled and “trapped in the dark vestiges of the ghetto” (Loury, 2008, 57). In his ethnography, Race, Incarceration, and American Values, Loury highlights these troubling trends concerning the dehumanization of African-Americans through our current sociopolitical landscape.
The Natural Support of African Americans in poverty is to lower food bills in families by cooking instead of buying fast foods. The culture of poverty “is perceived to be a worldview and ethos contributing to poor people staying in poverty.” (Rogers, 131) it is seen as people who are in poverty are the connection of their offspring who seem to also have a difficult time to move up higher in society. “Children learn from their parents that laziness is a way of life, as is receiving food stamps every month; children never gain the motivation to work their way...
Modern American imperialism continues to thrive on the racial domination and national oppression of African Americans, albeit in a different way. The historical relationship between slavery and capitalism is important because the racial context of American capitalism continues to be staggeringly evident in our society today. African Americans can no longer be bought and sold as slaves, but they are the ones most affected by our current economic crisis. They suffer higher unemployment rates, sharp declines in household wealth as well as losses of homes, health services, and pensions. According to The State of Working America, in 2010, 27.4% of African Americans lived in poverty, compared to the overall U.S. poverty rate of 15.1%. In addition
Boser, Ulrich. "The Black Man's Burden." U.S. News & World Report 133.8 (2002): 50. Academic
Constitution, there are more slaves than at any time in human history -- 27 million”. The African American Community is still “enslaved” to an idea that some of their lives can be bought and worth so very little. “Today’s slavery focuses on big profits and cheap lives. It is not about owning people like before, but about using them as completely disposable tools for making money” (McNally). Along with exploitation through the workforce and big business, this population continues on with day to day struggles such as profiling and misjudgment of their character based on their physical appearance and stature in certain areas of the country. Our criminal justice system exploits the minority by jailing their generations. Government systems fund for “fundamental testing” to the younger crowd of African Americans as well as the poorer minorities and neighborhoods for future projections of increased incarceration to come. Juvenile justice systems serve as a barrier between teen and adult criminality but make it possible for a widespread of ages in the black community to be held captive. Children and teens are impressionable in both negative and positive ways. More often than not, kids and teens alike stay in the system after being exposed to the condemning life of “crime” and soar through the system even in the days of adulthood after early exposure to the unequal way things work in the criminal justice
When Slavery existed in the United States, African’s were bought and sold as commodities at current Market values, like products or farm tools (84). Unlike their white counterparts, they were viewed as less then human, unworthy of any civil or legal rights. The civil war and the abolition of slavery that came with it did little to alleviate the prejudice and the suffering that Africans suffered during the period of slavery. The south circumvented the intent of the thirteenth, fourteenth and fifteenth amendments that attempted to guarantee ex-slaves their rights by enacting Jim Crow laws that continued to subjugate African Americans ...
Many African Americans were forced to live in poverty, because the events of neo-slavery after Post-Civil War, resulted to seemingly unavoidable poverty, given that their economic and social wellbeing were mostly influenced by the decisions of the whites, rather than the their own decisions. Hence, the many blacks become the stagnant component of the United States society; because even though after they gained freedom they were depicted ‘free people’, in reality they were still the same people not free from slavery, as a result most of them languished in poverty. I believe that this actions of enslaving African Americans through this system is what has led to the present state of things whereby many blacks are still poor because just like in the post-civil war times different forms of enslaving blacks have been put in place for example imprisoning through racial profiling and the concentrating of blacks in inner cities where there are not that many resources such as good schools, social facilities and good jobs which leads to crime and wasting of these people and a criminal justice system that seems to work against black
Although, African Americans are considered minorities in the United States, not all of them live in poverty. Many African Americans live in a middle class society along with the dominant culture. However, many African Americans do not live in a middle class society, but rather live in poverty and have to suffer along with this poverty. For instance, Donald Goines’s Black Girl Lost and Tina McElroy Ansa’s Baby of the Family, two narrative novels, that illustrate the difference in two young African American girls lives and the society in which they inhabit. Not only do these young African American girls represent the two sides of poverty, they also represent how children can also qualify in the minority category. For example, Sandra lives in a run down apartment with a drunk mother who could care less about her daughter. In addition, Sandra remains all on her own and has to find ways in which to survive each day. But on the other hand, Lena lives in a nice size home with her two parents, her two brothers, and her grandmother, all who love her very much. Moreover, Lena has many family members who look after her and take extra special care for her because she is the baby of the family. Although, both Sandra and Lena lead very different lives, both are faced with challenges as a minority and as a child which questions their view on life.
African American people have been oppressed for hundreds of years. Slavery was a significant time period when African/African American individuals endured massive oppression, which refers to the feeling of being deprived of their human rights and dignity (Reed, 2016). Knowing that my ancestors had to conceal their feelings along with their cultural values, makes me feel more entitled to express my ethnic identity as an African American woman. My ethnic identity has increase my sense of belongingness because it gives me the ability to share and live amongst individuals with the same physical appearance and in some cases, the same obstacles. Society has placed its’ social norms on modern day women, which allows men to make more for the same labor, or that stop successful women from achieving their goals by installing the glass ceiling. However, there is a higher increase of risk for African American women, such as decrease in the male head of household, along with urbanization. Which caused African American women to work long hours that resulted in a devastating shift in the family structure (Reed, 2016). Past, present and current experiences of African American women is why my ethnic identity is so important to me, because it is used as a constant reminder of the struggles that I have to overcome for my daughter and the generation after
The crucial importance and relevance of economics related disciplines to the modern world have led me to want to pursue the study of these social sciences at a higher level. My study of Economics has shown me the fundamental part it plays in our lives and I would like to approach it with an open mind - interested but not yet fully informed.