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 A 2dF survey of the Small Magellanic CloudWe present a catalogue of new spectral types for hot, luminous stars inthe Small Magellanic Cloud (SMC). The catalogue contains 4161 objects,giving an order-of-magnitude increase in the number of SMC stars withpublished spectroscopic classifications. The targets are primarily B-and A-type stars (2862 and 853 objects respectively), with oneWolf-Rayet, 139 O-type and 306 FG stars, sampling the main sequence to~mid-B. The selection and classification criteria are described, andobjects of particular interest are discussed, including UV-selectedtargets from the Ultraviolet Imaging Telescope (UIT) experiment, Be andB[e] stars, anomalous A supergiants' and composite-spectrum systems. Weexamine the incidence of Balmer-line emission, and the relationshipbetween Hγ equivalent width and absolute magnitude for BA stars. The Indo-US Library of Coudé Feed Stellar SpectraWe have obtained spectra for 1273 stars using the 0.9 m coudéfeed telescope at Kitt Peak National Observatory. This telescope feedsthe coudé spectrograph of the 2.1 m telescope. The spectra havebeen obtained with the no. 5 camera of the coudé spectrograph anda Loral 3K×1K CCD. Two gratings have been used to provide spectralcoverage from 3460 to 9464 Å, at a resolution of ~1 Å FWHMand at an original dispersion of 0.44 Å pixel-1. For885 stars we have complete spectra over the entire 3460 to 9464 Åwavelength region (neglecting small gaps of less than 50 Å), andpartial spectral coverage for the remaining stars. The 1273 stars havebeen selected to provide broad coverage of the atmospheric parametersTeff, logg, and [Fe/H], as well as spectral type. The goal ofthe project is to provide a comprehensive library of stellar spectra foruse in the automated classification of stellar and galaxy spectra and ingalaxy population synthesis. In this paper we discuss thecharacteristics of the spectral library, viz., details of theobservations, data reduction procedures, and selection of stars. We alsopresent a few illustrations of the quality and information available inthe spectra. The first version of the complete spectral library is nowpublicly available from the National Optical Astronomy Observatory(NOAO) via ftp and http. Characteristics and classification of A-type supergiants in the Small Magellanic CloudWe address the relationship between spectral type and physicalproperties for A-type supergiants in the Small Magellanic Cloud (SMC).First, we construct a self-consistent classification scheme for Asupergiants, employing the calcium K to Hɛ line ratio as atemperature-sequence discriminant. Following the precepts of the MKprocess', the same morphological criteria are applied to Galactic andSMC spectra, with the understanding that there may not be acorrespondence in physical properties between spectral counterparts indifferent environments. Then we discuss the temperature scale,concluding that A supergiants in the SMC are systematically cooler thantheir Galactic counterparts at the same spectral type, by up to ~10 percent. Considering the relative line strengths of Hγ and the CH Gband, we extend our study to F- and early G-type supergiants, for whichsimilar effects are found. We note the implications for analyses ofluminous extragalactic supergiants, for the flux-weightedgravity-luminosity relationship and for population synthesis studies inunresolved stellar systems. Toward an adequate method to isolate spectroscopic families of diffuse interstellar bandsWe divide some of the observed diffuse interstellar bands (DIBs) intofamilies that appear to have the spectral structure of single species.Three different methods are applied to separate such families, exploringthe best approach for future investigations of this type. Starting witha statistical treatment of the data, we found that statistical methodsby themselves give insufficient results. Two other methods of dataanalysis (averaging equivalent widths' and investigating the figureswith arranged spectrograms') were found to be more useful as tools forfinding the spectroscopic families of DIBs. On the basis of thesemethods, we suggest some candidates as relatives' of 5780- and5797-Å bands. A Method for Simultaneous Determination of AV and R and ApplicationsA method for the simultaneous determination of the interstellarextinction (AV) and of the ratio of total to selectiveextinction (R), derived from the 1989 Cardelli, Clayton, & Mathisfitting of the interstellar extinction law, is presented and applied toa set of 1900 color excesses derived from observations of stars inUBVRIJHKL. The method is used to study the stability of AVand R within selected regions in Perseus, Scorpius, Monoceros, Orion,Sagittarius, Ophiuchus, Carina, and Serpens. Analysis shows that R isapproximately constant and peculiar to each sector, with mean valuesthat vary from 3.2 in Perseus to 5.6 in Ophiuchus. These results aresimilar to published values by Aiello et al., He et al., Vrba &Rydgren, O'Donnell, and Cardelli, Clayton, & Mathis. Rotational velocities of A-type stars in the northern hemisphere. II. Measurement of v sin iThis work is the second part of the set of measurements of v sin i forA-type stars, begun by Royer et al. (\cite{Ror_02a}). Spectra of 249 B8to F2-type stars brighter than V=7 have been collected at Observatoirede Haute-Provence (OHP). Fourier transforms of several line profiles inthe range 4200-4600 Å are used to derive v sin i from thefrequency of the first zero. Statistical analysis of the sampleindicates that measurement error mainly depends on v sin i and thisrelative error of the rotational velocity is found to be about 5% onaverage. The systematic shift with respect to standard values fromSlettebak et al. (\cite{Slk_75}), previously found in the first paper,is here confirmed. Comparisons with data from the literature agree withour findings: v sin i values from Slettebak et al. are underestimatedand the relation between both scales follows a linear law ensuremath vsin inew = 1.03 v sin iold+7.7. Finally, thesedata are combined with those from the previous paper (Royer et al.\cite{Ror_02a}), together with the catalogue of Abt & Morrell(\cite{AbtMol95}). The resulting sample includes some 2150 stars withhomogenized rotational velocities. Based on observations made atObservatoire de Haute Provence (CNRS), France. Tables \ref{results} and\ref{merging} are only available in electronic form at the CDS viaanonymous ftp to cdsarc.u-strasbg.fr (130.79.125.5) or viahttp://cdsweb.u-strasbg.fr/cgi-bin/qcat?J/A+A/393/897 GasDust Shells around Some Early-Type Stars with an IR Excess (of Emission)The results of an investigation of IR (IRAS) observations of 58OBAF stars of different luminosity classes, whichare mainly members of various associations, are presented. The colorindices of these stars are determined and two-color diagrams areconstructed. The emission excesses at 12 and 25 mm (E 12 and E 25) arealso compared with the absorption A1640 of UV radiation. It is concludedthat 24 stars (of the 58 investigated) are disk systems of the Vegatype, to which Vega = N 53 also belongs. Eight known stars of the Vegatype are also given in the figures for comparison. The remaining 34stars may have gasdust shells and/or shelldisks. The IRemission excesses of the 34 investigated stars and 11 comparison stars(eight of them are Be-Ae stars) are evidently due both to thermalemission from grains and to the emission from freefreetransitions of electrons in the gasdust shells of these stars. A possible sets of diffuse bands originating at the same carrierThis paper discusses measurements of eight selected diffuse interstellarbands (DIBs): lambda lambda 5793, 5809, 5819, 5828, 6196, 6397, 6614 and6660 performed in high resolution, high S/N spectra of 41 reddenedstars. Central depths, considered less error-prone than equivalentwidths, are measured and mutual correlations between the selected DIBsare analyzed. Tight correlations between the DIBs: 5809, 6196, 6614 and6660 may suggest their common origin despite their widths differing by afactor of up to 2. The performed simulations prove that this fact doesnot preclude a common, molecular carrier of such features. Understanding A-type supergiants. I. Ultraviolet and visible spectral atlasThis paper is the first of a series whose aim is to perform a systematicstudy of A-type supergiant atmospheres and winds. Here we present aspectral atlas of 41 A-supergiants observed by us in high and mediumresolution in the visible and ultraviolet. The atlas consists ofprofiles of the Hα , Hβ , Hγ , Hdelta , Hepsilon , CaII (H and K), Na I (D1 and D2), Mg II4481, Mg II [uv1] and FeII [uv1, uv2, uv3, uv62, uv63, uv161] lines for 41 stars with spectraltypes ranging from B9 to A9 and luminosity classes Ia, Iab and Ib, andprovides the basic data for a thoughtful study of these stars. Theoverall characteristics of the sample as well as the data reductionprocedures are described. We also present some examples of spectralvariability. Figures 1-3 are only available in electronic form at thehttp://www.edpsciences.com} of A-type supergiants\fnmsep\thanks{Based onobservations made with the INT and JKT telescopes operated on the islandof La Palma by the RGO in the Spanish Observatorio del Roque de LosMuchachos of the Instituto de Astrofisica de Canarias, with the 2.2~mtelescope at Calar Alto Observatory, Spain, with the Bernard Lyot 2~mtelescope at Pic Du Midi Observatory, France and observations collectedat the European Southern Observatory at La Silla, Chile. Catalogue of H-alpha emission stars in the Northern Milky WayThe Catalogue of Stars in the Northern Milky Way Having H-alpha inEmission" appears in Abhandlungen aus der Hamburger Sternwarte, Band XIin the year 1997. It contains 4174 stars, range {32degr <= l() II< 214degr , -10degr < b() II < +10degr } having the Hαline in emission. HBH stars and stars of further 99 lists taken from theliterature till the end of 1994 were included in the catalogue. We givethe cross-identification of stars from all lists used. The catalogue isalso available in the Centre de Données, Strasbourg ftp130.79.128.5 or http://cdsweb.u-strasbg.fr and at the HamburgObservatory via internet. On correlations between diffuse interstellar bandsOne way to better apprehend the problem of diffuse interstellar bands(DIBs) is to search for correlations between the bands in a large sampleof spectra towards various lines of sight: a strict correlation mayimply that a common carrier is at the origin of the bands, whereas anon-correlation means that different species are involved. We proposethis observational test for 10 DIBs collected in up to 62 Galactic linesof sight. Strong DIBs do not strictly correlate, and sometimes thecorrelation is very poor. Only one example of a strict correlation hasbeen found in our sample between the DIBs at 6614 and 6196 Ä, thatcould signify a single carrier for those two bands. The general absenceof strict correlations is discussed in the context of molecular carriersfor the DIBs. The wind momentum-luminosity relationship of galactic A- and B-supergiantsThe Balmer lines of four A Ia-supergiants (spectral type A0 to A3) andfourteen B Ia and Ib-supergiants (spectral type B0 to B3) in the solarneighbourhood are analyzed by means of NLTE unified model atmospheres todetermine the properties of their stellar winds, in particular theirwind momenta. As in previous work for O-stars (Puls et al. \cite{pul96})a tight relationship between stellar wind momentum and luminosity(WLR'') is found. However, the WLR varies as function of spectraltype. Wind momenta are strongest for O-supergiants, then decrease fromearly B (B0 and B1) to mid B (B1.5 to B3) spectral types and becomestronger again for A-supergiants. The slope of the WLR appears to besteeper for A- and mid B-supergiants than for O-supergiants. Thespectral type dependence is interpreted as an effect of ionizationchanging the effective number and the line strength distributionfunction of spectral lines absorbing photon momentum around the stellarflux maximum. This interpretation needs to be confirmed by theoreticalcalculations for radiation driven winds. The Pistol-Star'' in theGalactic Centre, an extreme mid B-hypergiant recently identified as oneof the most luminous stars (Figer et al. \cite{fig99}) is found tocoincide with the extrapolation of the mid B-supergiant WLR towardshigher luminosities. However, the wind momentum of the Luminous BlueVariable P Cygni, a mid B-supergiant with extremely strong mass-loss, is1.2 dex higher than the WLR of the `normal'' supergiants. Thissignificant difference is explained in terms of the well-known stellarwind bi-stability of supergiants very close to the Eddinton-limit inthis particular range of effective temperatures. A-supergiants in M31observed with HIRES at the Keck telescope have wind momenta compatiblewith their galactic counterparts. The potential of the WLR as a new,independent extragalactic distance indicator is discussed. It isconcluded that with ten to twenty objects, photometry with HST andmedium resolution spectroscopy with 8m-telescopes from the grounddistance moduli can be obtained with an accuracy of about 0fm1 out tothe Virgo and Fornax clusters of galaxies. Understanding A-type supergiants. II. Atmospheric parameters and rotational velocities of Galactic A-type supergiantsWe present the second paper of a series whose aim is to perform a globalstudy of Galactic A-supergiants. Very little work has been carried outto determine the stellar parameters of these stars. This is illustratedwith a brief review of some previous works. In this paper we analyze thedetermination of absolute magnitudes, spectral types and atmosphericparameters using the most recent Kurucz LTE blanketed model atmospheresand we discuss the applicability of the calibrations, such as theSchmidt-Kaler's (\cite{Sch-K}) calibration. Rotation is also animportant parameter in A-supergiants but their rotational velocities arepoorly known. We have calculated projected rotational velocities fromthe Fourier analysis of the observed Mg II (4481 Ä) line. Based onobservations made with the INT and JKT telescopes operated on the islandof La Palma by the RGO in the Spanish Observatorio del Roque de LosMuchachos of the Instituto de Astrofisica de Canarias, with the 2.2mtelescope at Calar Alto Observatory, Spain, with the Bernard Lyot 2mtelescope at Pic Du Midi Observatory, France and observations collectedat the European Southern Observatory at La Silla, Chile UBV beta Database for Case-Hamburg Northern and Southern Luminous StarsA database of photoelectric UBV beta photometry for stars listed in theCase-Hamburg northern and southern Milky Way luminous stars surveys hasbeen compiled from the original research literature. Consisting of over16,000 observations of some 7300 stars from over 500 sources, thisdatabase constitutes the most complete compilation of such photometryavailable for intrinsically luminous stars around the Galactic plane.Over 5000 stars listed in the Case-Hamburg surveys still lackfundamental photometric data. Temperatures for A0-K0 Supergiants from 13-Color PhotometryObservations on the 13-color photometric system are reported for 71A0-K0 supergiant stars brighter than V=6.0. Three independent methods todetermine the effective temperatures for A0-K0 supergiants from their13C photometry are discussed: 1) Calibrations between T$eff$and reddening-free indices are developed; temperatures were collectedfrom the literature for the calibration stars, and most of them werespectroscopically determined. 2) An empirical correlation betweenintrinsic colors in the 13C system and T$eff$ has beenderived. 3) The unreddened colors are compared with synthetic colorscalculated by Kurucz (1989); this leads to simultaneous estimates forT$eff$ and log $g$. The estimated uncertainties inT$eff$ by the three methods are comparable and areapproximately plus or minus 200-300K. (SECTION: Stars) The Tokyo PMC catalog 90-93: Catalog of positions of 6649 stars observed in 1990 through 1993 with Tokyo photoelectric meridian circleThe sixth annual catalog of the Tokyo Photoelectric Meridian Circle(PMC) is presented for 6649 stars which were observed at least two timesin January 1990 through March 1993. The mean positions of the starsobserved are given in the catalog at the corresponding mean epochs ofobservations of individual stars. The coordinates of the catalog arebased on the FK5 system, and referred to the equinox and equator ofJ2000.0. The mean local deviations of the observed positions from theFK5 catalog positions are constructed for the basic FK5 stars to comparewith those of the Tokyo PMC Catalog 89 and preliminary Hipparcos resultsof H30. On the Variability of Early A-Type SupergiantsAn examination of the Hipparcos photometry of 26 bright early A-typesupergiants shows that they are all variable. Catalogue of stars in the northern Milky Way having H-alpha in emissionNot Available A catalogue of [Fe/H] determinations: 1996 editionA fifth Edition of the Catalogue of [Fe/H] determinations is presentedherewith. It contains 5946 determinations for 3247 stars, including 751stars in 84 associations, clusters or galaxies. The literature iscomplete up to December 1995. The 700 bibliographical referencescorrespond to [Fe/H] determinations obtained from high resolutionspectroscopic observations and detailed analyses, most of them carriedout with the help of model-atmospheres. The Catalogue is made up ofthree formatted files: File 1: field stars, File 2: stars in galacticassociations and clusters, and stars in SMC, LMC, M33, File 3: numberedlist of bibliographical references The three files are only available inelectronic form at the Centre de Donnees Stellaires in Strasbourg, viaanonymous ftp to cdsarc.u-strasbg.fr (130.79.128.5), or viahttp://cdsweb.u-strasbg.fr/Abstract.html Radiation driven wind models for A, F and G supergiants.We investigate the effects of radiation pressure on the atmospheres ofA, F and G-supergiants by calculating hydrodynamical model atmospheresfor stars with 5500<=T_eff_<=9500K. In the subsonic part of thewind, the radiation pressure by continuum and lines from Kurucz (1992,ATLAS 6 program) is taken into account. In the supersonic part of thewind, the radiation pressure is expressed in terms of the forcemultiplier formalism (Castor et al. 1975ApJ...195..157C) with thecorrection for the finite disk taken into account. The temperaturestructure is from the T(τ) relation of blanketed model atmospheres.The predicted mass loss rates of the A-supergiants agrees excellentlywith the observed values. However the predicted terminal velocities areabout a factor 3 higher than observed. We discuss several possiblecauses for this discrepancy. The most likely one is a change in theforce multiplier parameter α of the line radiation force fromabout 0.5 in the lower parts of the wind to a much smaller value ofabout 0.1 throughout most of the wind. This might be the result of achange in the ionization of the wind with distance, or a decoupling ofthe line driven ions in the wind from the ambient gas. The predictedmass loss rate of the G-type supergiant 22Vul, which is the onlyG-supergiant with a reliable mass loss rate, is a factor 10^5^ smallerthan observed. This is probably due to the fact that G-supergiants havechromospheres, which were not taken into account in our model. Ourmodels for F-supergiants could not be compared with observations becausethere are no reliable empirical mass loss rates or terminal windvelocities for normal F-supergiants. The F-supergiants ρCas andHR8752 have highly variable mass loss rates which obviously cannot beexplained by our models. We conclude that mass loss from A-typesupergiants is most likely due to a line driven wind but that the massloss from G-supergiants is not. It is interesting to find the spectraltype between F0 and G3 where the radiation driven wind models break downand to compare that with the type where the chromospheres becomenoticeable. The high opacity in the hydrogen ionization zone produces anet outward force in those layers. This gives rise to a pressureinversion in the subsonic part of the atmosphere, but does not lead tohigh mass loss rates. Atmospheric Parameters and LTE Abundances for 22 Galactic, A-Type SupergiantsAbstract image available at:http://adsabs.harvard.edu/cgi-bin/nph-bib_query?1995ApJS...99..659V&db_key=AST The Relation between Rotational Velocities and Spectral Peculiarities among A-Type StarsAbstract image available at:http://adsabs.harvard.edu/cgi-bin/nph-bib_query?1995ApJS...99..135A&db_key=AST Terminal Velocities and the Bistability of Stellar WindsAbstract image available at:http://adsabs.harvard.edu/cgi-bin/nph-bib_query?1995ApJ...455..269L&db_key=AST CNO Abundances and the Evolutionary Status of Galactic, A-Type SupergiantsAbstract image available at:http://adsabs.harvard.edu/cgi-bin/nph-bib_query?1995ApJ...449..839V&db_key=AST A study of some stars with circumstellar dust envelopes. IWe present the results of a study of circumstellar dust envelopes of 36stars of early(O-B-A) types in the directions of the associations CasOB1, Cas OB2, Per OB1, and Ori OB1. We determine the absorption at 1640Å, the linear radius of the dust envelopes, the mean value of thecoefficient k, and the masses of the envelopes. They differsignificantly from one another. Vitesses radiales. Catalogue WEB: Wilson Evans Batten. Subtittle: Radial velocities: The Wilson-Evans-Batten catalogue.We give a common version of the two catalogues of Mean Radial Velocitiesby Wilson (1963) and Evans (1978) to which we have added the catalogueof spectroscopic binary systems (Batten et al. 1989). For each star,when possible, we give: 1) an acronym to enter SIMBAD (Set ofIdentifications Measurements and Bibliography for Astronomical Data) ofthe CDS (Centre de Donnees Astronomiques de Strasbourg). 2) the numberHIC of the HIPPARCOS catalogue (Turon 1992). 3) the CCDM number(Catalogue des Composantes des etoiles Doubles et Multiples) byDommanget & Nys (1994). For the cluster stars, a precise study hasbeen done, on the identificator numbers. Numerous remarks point out theproblems we have had to deal with. An atlas of ultraviolet P Cygni profilesWe have selected spectra of 232 stars from the International UltravioletExplorer (IUE) archives for inclusion in an atlas intended for varioususes but tailored especially for the study of stellar winds. The atlascovers the range in spectral types from O3 to F8. The full atlas coversthe reduced and normalized high resolution spectra from the IUE long-and short-wavelength spectrographs. Here we discuss the selection of thestars and the data reduction, and we present in velocity units theprofiles of lines formed in the stellar winds. The selected lines covera wide range of ionizations, allowing a comparison of the profiles fromdifferent ions in the wind of each star and a comparison of thedifferent wind lines as a function spectral type and luminosity. We alsopresent the basic data on the program stars to facilitate study of thedependence of wind features on stellar parameters such as luminosity,temperature, escape velocity, and v sin i. We provide an overview of thecharacteristic behavior of the wind lines in the H-R diagram. Thecomplete spectra are available in digital form through the NASAAstrophysics Data System (ADS). We offer a description of the electronicdatabase that is available through the ADS and guidelines for obtainingaccess to that database. Improved Mean Positions and Proper Motions for the 995 FK4 Sup Stars not Included in the FK5 ExtensionNot Available
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8.4 Economic Inequality and Poverty in the United States

Learning Objectives

1. Understand trends in U.S. inequality.
2. Explain the social distribution of U.S. poverty.
3. Distinguish the structural and individual explanations of poverty.
4. List the major effects of poverty.

In his classic book The Other America, Michael Harrington (1962)Harrington, M. (1962). The other America: Poverty in the United States. New York, NY: Macmillan. brought the reality of poverty home to many Americans. In chapter after chapter, he discussed the troubled lives of the poor in rural Appalachia, in our urban centers, and in other areas of the country, and he indicted the country for not helping the poor. His book helped kindle interest in the White House and Congress in aiding the poor and deeply affected its thousands of readers. Almost five decades later, we know much more about poverty than we used to. Despite initial gains in fighting poverty in the 1960s (Schwartz, 1984),Schwartz, J. E. (1984, June 18). The war we won: How the great society defeated poverty. The New Republic, 18–19. poverty is still with us and has worsened since the early 2000s, especially since the onset of the serious economic recession that began in 2008. What do we know about the extent of poverty, the reasons for it, and its consequences?

Economic Inequality

Let’s start by discussing economic inequalityThe extent of the economic difference between the rich and the poor in a society., which refers to the extent of the economic difference between the rich and the poor. Because most societies are stratified, there will always be some people who are richer or poorer than others, but the key question is how much richer or poorer they are. When the gap between them is large, we say that much economic inequality exists; when the gap between them is small, we say that relatively little economic inequality exists.

Considered in this light, the United States has a very large degree of economic inequality. A common way to examine inequality is to rank the nation’s families by income from lowest to highest and then to divide this distribution into fifths. Thus, we have the poorest fifth of the nation’s families (or the 20% of families with the lowest family incomes), a second fifth with somewhat higher incomes, and so on until we reach the richest fifth of families, or the 20% with the highest incomes. We then can see what percentage each fifth has of the nation’s entire income. Figure 8.6 "Share of National Income Going to Income Fifths, 2009" shows such a calculation for the United States. The poorest fifth enjoys only 3.4% of the nation’s income, while the richest fifth enjoys 50.3%. Another way of saying this is that the richest 20% of the population have as much income as the remaining 80% of the population.

Figure 8.6 Share of National Income Going to Income Fifths, 2009

This degree of inequality is the largest in the industrialized world. Figure 8.7 "Income Inequality Around the World" compares the inequality among several industrialized nations by dividing the median income of households in the 90th percentile (meaning they have more income than 90% of all households) by the median income of households in the 10th percentile (meaning they have more income than only 10% of all households); the higher the resulting ratio, the greater a nation’s inequality. The ratio for the United States, 4.86, far exceeds that for any other nation.

Figure 8.7 Income Inequality Around the World

Ratio of median income of richest 10% in each nation to that of poorest 10%.

Economic inequality in the United States has increased during the last two decades. The loss of manufacturing jobs and changes in taxation and income distribution policies since the early 1980s have favored the rich and hurt the economic standing of the middle class and the poor (Barlett & Steele, 2002; Wilson, 2009).Barlett, D. L., & Steele, J. B. (2002). The great American tax dodge: How spiraling fraud and avoidance are killing fairness, destroying the income tax, and costing you. Berkeley: University of California Press; Wilson, W. J. (2009). The economic plight of inner-city black males. In E. Anderson (Ed.), Against the wall: Poor, young, black, and male (pp. 55–70). Philadelphia: University of Pennsylvania Press. After adjusting for inflation, the post-tax income of the nation’s wealthiest families grew by a much greater amount than that for the poorest families from 1979 to 2005. It grew by only 6% for the poorest fifth but by 80% for the wealthiest fifth, and it also grew by a whopping 228% for families in the top 1% of the nation’s families (Mishel, Bernstein, & Shierholz, 2009).Mishel, L., Bernstein, J., & Shierholz, H. (2009). The state of working America 2008/2009. Ithaca, NY: ILR Press [An imprint of Cornell University Press]. As the saying goes, the rich get richer. To recall our earlier discussion, to be upwardly mobile, it helps to be well-off to begin with.

Measuring Poverty

When U.S. officials became concerned about poverty during the 1960s, they quickly realized they needed to find out how much poverty we had. To do so, a measure of official poverty, or a poverty lineThe government’s measure of official poverty, based on the cost of a minimal diet for a family multiplied by three., was needed. This line was first calculated in 1963 by multiplying the cost of a very minimal diet by three, as a 1955 government study had determined that the typical American family spent one-third of its income on food. Thus a family whose income is lower than three times the cost of a very minimal diet is considered officially poor.

The measure of official poverty began in 1963 and stipulates that a family whose income is lower than three times the cost of a minimal diet is considered officially poor. This measure has not changed since 1963 even though family expenses have risen greatly in many areas.

This way of calculating the poverty line has not changed since 1963, even though many other things, such as energy, child care, and health care, now occupy a greater percentage of the typical family’s budget than was true in 1963. As a national measure, the poverty line also fails to take into account regional differences in the cost of living. For all of these reasons, many experts think the official measurement of poverty is highly suspect. As a recent report observed, “Most poverty analysts strongly believe that the official poverty statistics are inadequate to the task of determining who is poor in America” (Mishel, Bernstein, & Shierholz, 2009, p. 298).Mishel, L., Bernstein, J., & Shierholz, H. (2009). The state of working America 2008/2009. Ithaca, NY: ILR Press [An imprint of Cornell University Press].

The poverty line is adjusted annually for inflation and takes into account the number of people in a family: the larger the family size, the higher the poverty line. In 2009, the poverty line for a nonfarming family of four (two adults, two children) was $21,756. A four-person family earning even one more dollar than$21,756 in 2009 was not officially poor, even though its “extra” income hardly lifted it out of dire economic straits. Policy experts have calculated a no-frills budget that enables a family to meet its basic needs in food, clothing, shelter, and so forth; this budget is about twice the poverty line. Families with incomes between the poverty line and twice the poverty line are barely making ends meet, but they are not considered officially poor. When we talk here about the poverty level, keep in mind that we are talking only about official poverty and that there are many families and individuals living in near-poverty who have trouble meeting their basic needs, especially when they face unusually high medical or motor vehicle expenses or the like. For this reason, some analyses use “twice-poverty” data (i.e., family incomes below twice the poverty line) to provide a more accurate understanding of how many Americans face serious financial difficulties.

The Extent and Social Distribution of Poverty

With this caveat in mind, how many Americans are poor, and who are they? The U.S. Census Bureau gives us some answers. In 2009, 14.3% of the U.S. population, or almost 44 million Americans, lived in (official) poverty (DeNavas-Walt, Proctor, & Smith, 2010).DeNavas-Walt, C., Proctor, B. D., & Smith, J. C. (2010). Income, poverty, and health insurance coverage in the United States: 2009 (Current Population Report P60-238). Washington, DC: U.S. Census Bureau. This percentage represented a decline from the early 1990s but was higher than the rate in the late 1960s (see Figure 8.8 "U.S. Poverty, 1959–2009"). If we were winning the war on poverty in the 1960s, since then poverty has fought us to a standstill.

Figure 8.8 U.S. Poverty, 1959–2009

Another way of understanding the extent of poverty is to consider episodic povertyAs defined by the Census Bureau, being poor for at least 2 consecutive months in some time period., defined by the Census Bureau as being poor for at least 2 consecutive months in some time period. From 2004 to 2007, the last years for which data are available, almost one-third of the U.S. public, equal to about 95 million people, were poor for at least 2 consecutive months, although only 2.2% were poor for all 3 years (DeNavas-Walt, Proctor, & Smith, 2010).DeNavas-Walt, C., Proctor, B. D., & Smith, J. C. (2010). Income, poverty, and health insurance coverage in the United States: 2009 (Current Population Report P60-238). Washington, DC: U.S. Census Bureau. As these figures indicate, people go into and out of poverty, but even those who go out of it do not usually move very far from it.

Learning From Other Societies

Poverty and Poverty Policy in Other Western Democracies

To compare international poverty rates, scholars commonly use a measure of the percentage of households in a nation that receive less than half of the nation’s median household income after taxes and cash transfers from the government. In 2000, the latest date for which data are available, 17% of U.S. households lived in poverty as defined by this measure (Mishel, Bernstein, & Shierholz, 2009).Mishel, L., Bernstein, J., & Shierholz, H. (2009). The state of working America 2008/2009. Ithaca, NY: ILR Press [An imprint of Cornell University Press]. By comparison, selected other Western democracies had the following rates (Mishel, Bernstein, & Shierholz, 2009, p. 384):Mishel, L., Bernstein, J., & Shierholz, H. (2009). The state of working America 2008/2009. Ithaca, NY: ILR Press [An imprint of Cornell University Press].

 Canada 11.4% Denmark 9.2% France 8.0% Germany 8.3% Norway 6.4% Spain 14.3% Sweden 6.5% United Kingdom 12.4%

The average poverty rate of Western democracies excluding the United States is 9.8%. The U.S. rate is thus 1.73 times greater than this average.

Why is there so much more poverty in the United States than in its Western counterparts? Several differences between the United States and the other nations stand out. First, other Western nations have higher minimum wages and stronger unions than the United States has, and these lead to incomes that help push people above poverty. Second, the other nations spend a much greater proportion of their gross domestic product on social expenditures (income support and social services such as child care subsidies and housing allowances) than does the United States. As a recent analysis concluded,

Other peer countries are much more likely than the United States to step in where markets have failed to live their most disadvantaged citizens out of poverty. This suggests that the relatively low expenditures on social welfare are at least partially implicated in the high poverty rates in the United States. (Mishel, Bernstein, & Shierholz, 2009, p. 387)Mishel, L., Bernstein, J., & Shierholz, H. (2009). The state of working America 2008/2009. Ithaca, NY: ILR Press [An imprint of Cornell University Press].

In short, the United States has so much more poverty than other democracies in part because it spends so much less than they do on helping the poor. The United States certainly has the wealth to follow their example, but it has chosen not to do so, and a high poverty rate is the unfortunate result.

Who are the poor? Contrary to popular images, the most typical poor person in the United States is white: approximately 44% of poor people are white (non-Latino), 29% are Latino, 23% are black, and 4% are Asian (see Figure 8.9 "Racial and Ethnic Composition of the Poor, 2009 (Percentage of Poor Persons in Each Group)"). At the same time, race and ethnicity affect the chances of being poor: while only 9.4% of non-Latino whites are poor, 25.8% of African Americans, 12.5% of Asians, and 25.3% of Latinos (who may be of any race) are poor (see Figure 8.10 "Race, Ethnicity, and Poverty, 2009 (Percentage of Each Group That Is Poor)"). Thus African Americans and Latinos are almost three times as likely as non-Latino whites to be poor. (Because there are so many non-Latino whites in the United States, the plurality of poor people are non-Latino white, even if the percentage of whites who are poor is relatively low.) Chapter 10 "Race and Ethnicity" further discusses the link between poverty and race and ethnicity.

Figure 8.9 Racial and Ethnic Composition of the Poor, 2009 (Percentage of Poor Persons in Each Group)

Figure 8.10 Race, Ethnicity, and Poverty, 2009 (Percentage of Each Group That Is Poor)

Turning to age, almost 21% of children under age 18 are poor (amounting to more than 15 million children), including 35.7% of African American children and 33.1% of Latino children (DeNavas-Walt, Proctor, & Smith, 2010).DeNavas-Walt, C., Proctor, B. D., & Smith, J. C. (2010). Income, poverty, and health insurance coverage in the United States: 2009 (Current Population Report P60-238). Washington, DC: U.S. Census Bureau. The poverty rate for U.S. children is the highest in the Western world and 1.5 to 9 times greater than the corresponding rates in Canada and Western Europe (Mishel, Bernstein, & Shierholz, 2009).Mishel, L., Bernstein, J., & Shierholz, H. (2009). The state of working America 2008/2009. Ithaca, NY: ILR Press [An imprint of Cornell University Press]. At the other end of the age distribution, 8.9% of people aged 65 or older are poor (amounting to about 3.4 million seniors). Turning around these U.S. figures, about 36% of all poor people in the United States are children, and about 8% of the poor are 65 or older. Thus some 44% of Americans living in poverty are children or the elderly.

The poverty rate for U.S. children is the highest in the Western world.

The type of family structure also makes a difference: whereas only 8.5% of children living with married parents live in poverty, 43% of those living with only their mother live in poverty (2007 data). This latter figure is about 32% for Asian children and for non-Latino white children and rises to slightly more than 50% for African American children and Latino children (Moore, Redd, Burkhauser, Mbawa, & Collins, 2009).Moore, K. A., Redd, Z., Burkhauser, M., Mbawa, K., & Collins, A. (2009). Children in poverty: Trends, consequences, and policy options. Washington, DC: Child Trends. Retrieved from http://www.childtrends.org/Files//Child_Trends-2009_04_07_RB_ChildreninPoverty.pdf As these latter numbers indicate, families headed by a single woman are much more likely to be poor. Poverty thus has a female face.

Explaining Poverty

Explanations of poverty focus on problems either within the poor themselves or in the society in which they live (Iceland, 2006).Iceland, J. (2006). Poverty in America: A handbook. Berkeley: University of California Press. The first type of explanation follows logically from the functional theory of stratification and may be considered an “individual” explanation. The second type of explanation follows from conflict theory and is a structural explanation that focuses on problems in American society that produce poverty. As the “Sociology Making a Difference” box discusses, the explanation of poverty people favor affects how sympathetic they are to the poor.

According to the individual explanation, the poor have personal problems and deficiencies that are responsible for their poverty. In the past, the poor were thought to be biologically inferior, a view that has not entirely faded, but today the much more common belief is that they lack the ambition and motivation to work hard and to achieve. According to the World Values Survey, 60% of Americans believe that people are poor “because they are lazy and lack will power.” This percentage reflects the tendency of Americans to favor individual explanations of poverty (Davidson, 2009).Davidson, T. C. (2009). Attributions for poverty among college students: The impact of service-learning and religiosity. College Student Journal, 43, 136–144.

A more sophisticated version of this type of explanation is called the culture of poverty theory (Banfield, 1974; O. Lewis, 1966).Banfield, E. C. (1974). The unheavenly city revisited. Boston, MA: Little, Brown; Lewis, O. (1966). The culture of poverty. Scientific American, 113, 19–25. According to this theory, the poor generally have beliefs and values that differ from those of the nonpoor and that doom them to continued poverty. For example, they are said to be impulsive and to live for the present rather than the future. Critics say this view exaggerates the degree to which the poor and nonpoor do in fact hold different values and ignores discrimination and other problems in American society (Iceland, 2006).Iceland, J. (2006). Poverty in America: A handbook. Berkeley: University of California Press.

According to the second, structural explanation, U.S. poverty stems from problems in American society that lead to lack of equal opportunity. These problems include (a) racial, ethnic, gender, and age discrimination; (b) lack of good schooling and adequate health care; and (c) structural changes in the American economic system, such as the departure of manufacturing companies from American cities in the 1980s and 1990s (Iceland, 2003).Iceland, J. (2003). Dynamics of economic well-being, 1996–1999 (Current Population Report P70–91). Washington, DC: U.S. Census Bureau. These problems help create a vicious cycle of poverty in which children of the poor are often fated to end up in poverty or near-poverty themselves as adults.

Sociology Making a Difference

Attributions for Poverty and Public Education Campaigns

The text discusses two general explanations for poverty. The first attributes poverty to lack of willpower and other problems among the poor themselves, while the second attributes poverty to structural obstacles and lack of opportunity in the larger society. As the text notes, Americans tend to favor the first explanation more than the second explanation. They also tend to disagree that the government should do more to help the poor. Could these two sets of views be linked? If so, what would such a link imply for poverty policy?

Sociological research finds that the explanation we favor for poverty—the attribution for poverty we hold—affects whether we want the government to take an active role in helping the poor (Bradley & Cole, 2002).Bradley, C., & Cole, D. J. (2002). Causal attributions and the significance of self-efficacy in predicting solutions to poverty. Sociological Focus, 35, 381–396. People who attribute poverty to problems in the larger society are much more likely than those who attribute it to deficiencies among the poor to believe that the government should take such a role. The attribution for poverty we hold presumably affects the amount of sympathy we have for the poor, and our sympathy, or lack of sympathy, in turn affects our views about the government’s role in helping the poor. As sociologist Theresa C. Davidson (2009)Davidson, T. C. (2009). Attributions for poverty among college students: The impact of service-learning and religiosity. College Student Journal, 43, 136–144. observes, “Beliefs about the causes of poverty shape attitudes toward the poor.”

This body of research strongly suggests that public support for government aid for the poor is weak because so much of the public attributes poverty to failings among the poor themselves. If so, the public might very well begin to endorse greater government aid if its attribution for poverty became more structural instead of individual. Public education campaigns that call attention to the lack of opportunity and other structural problems that account for poverty thus might further poverty policy by beginning to change public perceptions of the poor.

Most sociologists favor the structural explanation. As our earlier Monopoly example illustrates, poverty greatly blocks opportunities for success. Later chapters document racial and ethnic discrimination, lack of adequate schooling and health care, and other problems that make it difficult to rise out of poverty. On the other hand, some ethnographic research supports the individual explanation by showing that the poor do have certain values and follow certain practices that augment their plight (Small, Harding, & Lamont, 2010).Small, M. L., Harding, D. J., & Lamont, M. (2010, May). Reconsidering culture and poverty. The Annals of the American Academy of Political and Social Science, 629, 6–27. For example, the poor have higher rates of cigarette smoking (34% of people with annual incomes between $6,000 and$11,999 smoke, compared to only 13% of those with incomes \$90,000 or greater (Goszkowski, 2008),Goszkowski, R. (2008). Among Americans, smoking decreases as income increases. Retrieved from http://www.gallup.com/poll/105550/among-americans-smoking-decreases-income-increases.aspx which helps lead them to have more serious health problems. Adopting an integrated perspective, some researchers say these values and practices are in many ways the result of poverty itself (Small, Harding, & Lamont, 2010).Small, M. L., Harding, D. J., & Lamont, M. (2010, May). Reconsidering culture and poverty. The Annals of the American Academy of Political and Social Science, 629, 6–27. These scholars concede a culture of poverty does exist, but they also say it exists because it helps the poor cope daily with the structural effects of being poor. If these effects lead to a culture of poverty, they add, then poverty becomes self-perpetuating. If poverty is both cultural and structural in origin, these scholars say, a comprehensive national effort must be launched to improve the lives of the people in the “other America.”

The Effects of Poverty

However poverty is explained, it has important and enduring effects, which later chapters will continue to discuss. For now, we can list some of the major consequences of poverty (and near-poverty) in the United States. As we do so, recall the sociological perspective’s emphasis on how our social backgrounds influence our attitudes, behaviors, and life chances. This influence on life chances is quite evident when we look at some of the effects of poverty (Moore, Redd, Burkhauser, Mbawa, & Collins, 2009; Iceland, 2006; D. Lindsey, 2009):Moore, K. A., Redd, Z., Burkhauser, M., Mbawa, K., & Collins, A. (2009). Children in poverty: Trends, consequences, and policy options. Washington, DC: Child Trends. Retrieved from http://www.childtrends.org/Files//Child_Trends-2009_04_07_RB_ChildreninPoverty.pdf; Iceland, J. (2006). Poverty in America: A handbook. Berkeley: University of California Press; Lindsey, D. (2009). Child poverty and inequality: Securing a better future for America’s children. New York, NY: Oxford University Press.

Poor children are more likely to have inadequate nutrition and to experience health, behavioral, and cognitive problems.

• The poor are at greater risk for family problems, including divorce and domestic violence. The stress of being poor is thought to be a major reason for these problems.
• The poor are also at greater risk for health problems, including infant mortality, earlier mortality during adulthood, mental illness, and inadequate medical care. Many poor people lack health insurance. Poor children are more likely to have inadequate nutrition and to suffer health, behavioral, and cognitive problems. These problems in turn impair their ability to do well in school and land stable employment as adults, helping to ensure that poverty will persist across generations.
• Poor children typically go to rundown schools with inadequate facilities where they receive inadequate schooling. They are much less likely than nonpoor children to graduate from high school or to go to college. Their lack of education in turn restricts them and their own children to poverty, once again helping to ensure a vicious cycle of continuing poverty across generations.
• The poor are, not surprisingly, more likely to be homeless than the nonpoor but also more likely to live in dilapidated housing and unable to buy their own homes. Many poor families spend more than half their income on rent. The lack of adequate housing for the poor remains a major national problem.

Key Takeaways

• Inequality refers to the gap between the rich and the poor. The United States has a high degree of inequality.
• Although the official poverty line measure has been criticized for several reasons, in 2007 about 12.5% of the U.S. population, or more than 37 million people, were living in official poverty.
• About 18% of U.S. children live in official poverty; this rate is the highest in the Western world.
• Explanations of poverty focus on problems either within the poor themselves or in the society in which they live. These two types of explanations reflect the functionalist and conflict views, respectively.
• Poverty has several important and enduring consequences, including many kinds of health problems.

For Your Review

1. Do you agree with the criticism of the official measure of poverty in the United States, or do you think it is probably accurate enough because it has been used since the 1960s? Explain your answer.
2. Which explanation of poverty makes the most sense to you? Why?

Reducing U.S. Poverty: What Sociology Suggests

It is easy to understand why the families in Wichita, Kansas, discussed in the news story that began this chapter might be poor in the middle of a deep economic recession. Yet a sociological understanding of poverty emphasizes its structural basis in bad times and good times alike. Poverty is rooted in social and economic problems of the larger society rather than in the lack of willpower, laziness, or other moral failings of poor individuals themselves. Individuals born into poverty suffer from a lack of opportunity from their first months up through adulthood, and poverty becomes a self-perpetuating, vicious cycle. To the extent a culture of poverty might exist, it is best seen as a logical and perhaps even inevitable outcome of, and adaptation to, the problem of being poor and not the primary force driving poverty itself.

This sort of understanding suggests that efforts to reduce poverty must address first and foremost the structural basis for poverty while not ignoring certain beliefs and practices of the poor that also make a difference. An extensive literature on poverty policy outlines many types of policies and strategies that follow this dual approach (Moore, Redd, Burkhauser, Mbawa, & Collins, 2009; Iceland, 2006; D. Lindsey, 2009; Cancian & Danziger, 2009; Turner & Rawlings, 2005).Moore, K. A., Redd, Z., Burkhauser, M., Mbawa, K., & Collins, A. (2009). Children in poverty: Trends, consequences, and policy options. Washington, DC: Child Trends. Retrieved from http://www.childtrends.org/Files//Child_Trends-2009_04_07_RB_ChildreninPoverty.pdf; Iceland, J. (2006). Poverty in America: A handbook. Berkeley: University of California Press; Lindsey, D. (2009). Child poverty and inequality: Securing a better future for America’s children. New York, NY: Oxford University Press; Cancian, M., & Danziger, S. (2009). Changing poverty and changing antipoverty policies. Ann Arbor: National Poverty Center, University of Michigan; Turner, M. A., & Rawlings, L. A. (2005). Overcoming concentrated poverty and isolation: Ten lessons for policy and practice. Washington, DC: The Urban Institute. If these were fully adopted, funded, and implemented, they would offer great promise for reducing poverty. As two poverty experts recently wrote, “We are optimistic that poverty can be reduced significantly in the long term if the public and policymakers can muster the political will to pursue a range of promising antipoverty policies” (Cancian & Danziger, 2009, p. 32).Cancian, M., & Danziger, S. (2009). Changing poverty and changing antipoverty policies. Ann Arbor: National Poverty Center, University of Michigan. Although a full discussion of these policies is beyond the scope of this chapter, the following measures are commonly cited as holding strong potential for reducing poverty:

1. Adopt a national “full employment” policy for the poor, involving federally funded job training and public works programs.
2. Increase federal aid for the working poor, including earned income credits and child care subsidies for those with children.
3. Establish well-funded early childhood intervention programs, including home visitations by trained professionals, for poor families.
4. Improve the schools that poor children attend and the schooling they receive and expand early childhood education programs for poor children.
5. Provide better nutrition and health services for poor families with young children.
6. Strengthen efforts to reduce teenage pregnancies.
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text:
# Giant

103

[Verse 1: Rag’n’Bone Man]
I understood loneliness before I knew what it was
I saw the pills on the table for your unrequited love
I would be nothing without you holding me up
Now I’m strong enough for both of us
Both of us, both of us, both of us

[Chorus: Rag’n’Bone Man]
I am the giant (Ooh)
Stand up on my shoulders, tell me what you see
‘Cause I am the giant (Ooh)
We’ll be breaking boulders underneath our feet
I am, I am, I am, I am, I am, I am the giant (Oh)
I am, I am, I am, I am, I am, I am the giant (Oh)

[Verse 2: Rag’n’Bone Man]
And feed from the notion we can be who we are
You taught me something, yeah, freedom is ours
It was you who taught me living is
Togetherness, togetherness, togetherness

[Chorus: Rag’n’Bone Man]
I am the giant (Ooh)
Stand up on my shoulders, tell me what you see
‘Cause I am the giant (Ooh)
We’ll be breaking boulders, underneath our feet
I am, I am, I am, I am, I am, I am the giant (Oh)
I am, I am, I am, I am, I am, I am the giant (Oh)

[Bridge: Rag’n’Bone Man]
Oh, oh, oh, hey-oh, oh, oh, oh, hey-oh
I’m gonna shake, throw it away in the dirt under me, yeah, yeah
Oh, oh, oh, hey-oh
I’m gonna shake, throw it away in the dirt under me, yeah, yeah
Oh, oh, oh, hey-oh
Gonna shake, throw it away in the dirt, yeah, yeah
Oh, oh, oh, hey-oh
Gonna shake, all the way in the dirt, yeah, yeah
Oh, oh, oh, hey-oh
Gonna shake, all the way in the dirt, yeah, yeah
Oh, oh, oh, hey-oh
Gonna shake, all the way in the dirt

[Outro: Rag’n’Bone Man]
(Ooh)
I am, I am, I am (Ooh)
I am, I am, I am, I am, I am the giant (Ooh)
I am, I am, I am, I am, I am the giant (Ooh)

In case you missed it


text:
Properties of subgroups not containing their centralizers
Annales mathématiques Blaise Pascal, Volume 16 (2009) no. 2, pp. 267-275.

In this paper, we give a generalization of Baer Theorem on the injective property of divisible abelian groups. As consequences of the obtained result we find a sufficient condition for a group $G$ to express as semi-direct product of a divisible subgroup $D$ and some subgroup $H$. We also apply the main Theorem to the $p$-groups with center of index ${p}^{2}$, for some prime $p$. For these groups we compute ${N}_{c}\left(G\right)$ the number of conjugacy classes and ${N}_{a}$ the number of abelian maximal subgroups and ${N}_{na}$ the number of nonabelian maximal subgroups.

DOI: 10.5802/ambp.266
Classification: 14L05, 20D25, 20K27, 20E28
Keywords: Maximal subgroup, divisible groups, p-groups, center, conjugacy classes
Lemnouar Noui 1

1 Department of Mathematics Faculty of Science University of Batna, Algeria
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Lemnouar Noui. Properties of subgroups not containing their centralizers. Annales mathématiques Blaise Pascal, Volume 16 (2009) no. 2, pp. 267-275. doi : 10.5802/ambp.266. https://ambp.centre-mersenne.org/articles/10.5802/ambp.266/

[1] Michael Reid The number of conjugacy classes, Amer. Math. Monthly, Volume 105 (1998) no. 4, pp. 359-361 | DOI | MR | Zbl

[2] Derek J. S. Robinson Finiteness conditions and generalized soluble groups. Part 1, Springer-Verlag, New York, 1972 (Ergebnisse der Mathematik und ihrer Grenzgebiete, Band 62) | MR | Zbl

[3] Derek J. S. Robinson A course in the theory of groups, Graduate Texts in Mathematics, 80, Springer-Verlag, New York, 1996 | MR | Zbl

[4] Gary Sherman A lower bound for the number of conjugacy classes in a finite nilpotent group, Pacific J. Math., Volume 80 (1979) no. 1, pp. 253-254 | MR | Zbl

[5] N. Watson Subgroups of finite abelian groups, 1995 (Summer research paper, Haverford College)

Cited by Sources:


text:
# sinking fund: necessary size of semi-annual deposits

#### missl

##### New member
Hi, I am not sure what number to be use for question 1 ...

The village of Selkirk has borrowed $225,000 at 13% compounded semi-annually from the regional district to build an office complex. The loan agreement requires the payment of interest end of every year. In addition, the village is to make equal payments into a sinking fund so that the principal can be retired after 15 years. Interest earned by the fund is 11% compounded semi-annually. REQUIRED: 1) What is the size of the semi-annual deposits into the sinking fund? #### Denis ##### Senior Member Re: sinking fund missl said: The village of Selkirk has borrowed$225,000 at 13% compounded semi-annually from the regional district to build an office complex. The loan agreement requires the payment of interest end of every year. In addition, the village is to make equal payments into a sinking fund so that the principal can be retired after 15 years. Interest earned by the fund is 11% compounded semi-annually.
REQUIRED:
1) What is the size of the semi-annual deposits into the sinking fund?
$225,000 will be owing after 15 years (since the interest is being paid each year). So you simply need to calculate the semi-annual deposit that will accumulate to 225000 after 15 years. FV = 225000, n = 30, i = .11 / 2 = .055 #### missl ##### New member Re: sinking fund thanks denis #### missl ##### New member Hi, I know this question is the same as above. But its a differnent question that I need to do. I was wondering if someone can tell me if this need to convert to monthly interest rate The village of Selkirk has borrowed$225,000 at 13% compounded semi-annually from the regional district to build an office complex. The loan agreement requires the payment of interest end of every year. In addition, the village is to make equal payments into a sinking fund so that the principal can be retired after 15 years. Interest earned by the fund is 11% compounded semi-annually.

REQUIRED:
What is the semi-annual interest payment on the debt?

PV 225,000 I 13/2 = 6.5% N 15(2)=30
I2= (1+I)^m/m2 -1
(1+0.065)^2/1-1n???? before I find the semi annual interest payment