How often do you think about​ class?
Social class is usually something we​ don't think much about. Have you ever heard of the phrase​ "birds of a feather flock​ together?" We tend to hang round with people like ourselves because we feel comfortable with similar people. We live in areas where people are from the same class. We work and socialize with people like us. The people around us share our values and priorities. They share our cultural and social preferences to​ fashion, food, rules of​ etiquette, mannerisms, and ways of speaking. All these commonalities become​ taken-for-granted and normalized ways of being and doing.
Class only comes to the fore when we walk into another neighborhood and are confronted with people who are not like us. The signals are usually​ subtle; slightly different​ mannerisms, aesthetic​ tastes, appearance, and dress sense. Yet our gut reaction is that we are in a place where we​ don't quite fit in. You can easily test this out by recalling your own reactions to different suburbs you have visited. Imagine the different kind of clientele in the​ shops, bars, and restaurants. Think about how the people are different to you. What is it that makes you think that this is not a place where you fit in so​ well?
Class is of course intimately related to income and​ wealth, but class is more than about money. Think about some these other kinds of social markers that serve to distinguish people as upper or lower class.​ Take, for example the case of a​ working-class family that suddenly wins the lottery. Will their tastes and mannerisms change in line with the extra​ money; or would they still stand out when moving to an upmarket​ neighbourhood?
The research​ I've conducted finds subtle differences between classes in how people plan their finances and manage their money.​ It's partly about money managing skills and partly about outlook. Money planning skills can be partially taught but distinctive outlook is harder to change. Outlook includes things like degree of personal​ confidence, ambitiousness, belief in future possibilities for growth and comfort with challenge and change. People who are stronger in these forms of outlook set more ambitious financial​ goals, develop more elaborate plans to achieve them and persist more doggedly their attainment.
On the other hand if you lack personal​ confidence, set smaller goals and more easily give​ up, then a​ self-fulfilment prophesy sets
in—more
limited financial potential. Another part of the problem for people with poorer financial resources lies in the fact that they are more focused on meeting​ week-by-week costs. This is obviously​ stressful, emotionally​ wearing, and reinforces a​ short-term focus, where​ long-term goal setting recedes. Constant financial stress and frustration at lack of progress can leave many people at the bottom of the social scale feeling​ hopeless, fatalistic, and prone to spending any spare money on things that provide instant​ gratification: cigarettes,​ alcohol, fast​ food, and gambling. This sets up a downward health spiral that adds yet another layer of disadvantage.
Part 2
q1 - Dr. Henry talks about social class and its effects on consumer behavior. He notes that social class is intimately related to income and wealth. One of the biggest issues of our time is income inequality. Explain income inequality and its impact on consumers.
q2 - Dr. Henry notes that the research he conducted finds subtle differences between classes in how people plan their finances and manage their money. What factors impact social​ class? In thinking about the relationship between social class and​ income, is there a perfect or imperfect relationship between the​ two? What impact is income having on social classes​ globally?