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<journal-meta>
<journal-id>1517-4522</journal-id>
<journal-title><![CDATA[Sociologias]]></journal-title>
<abbrev-journal-title><![CDATA[Sociologias]]></abbrev-journal-title>
<issn>1517-4522</issn>
<publisher>
<publisher-name><![CDATA[Programa de Pós-Graduação em Sociologia - UFRGS]]></publisher-name>
</publisher>
</journal-meta>
<article-meta>
<article-id>S1517-45222007000100001</article-id>
<title-group>
<article-title xml:lang="en"><![CDATA[Socioeconomic inequalities: concepts and research problems]]></article-title>
<article-title xml:lang="pt"><![CDATA[Desigualdades socioeconômicas: conceitos e problemas de pesquisa]]></article-title>
</title-group>
<contrib-group>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Cattani]]></surname>
<given-names><![CDATA[Antonio David]]></given-names>
</name>
<xref ref-type="aff" rid="A01"/>
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<contrib contrib-type="author">
<name>
<surname><![CDATA[Rands]]></surname>
<given-names><![CDATA[Nicholas]]></given-names>
</name>
</contrib>
</contrib-group>
<aff id="A01">
<institution><![CDATA[,Universidade Federal do Rio Grande do Sul  ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
</aff>
<pub-date pub-type="pub">
<day>00</day>
<month>00</month>
<year>2007</year>
</pub-date>
<pub-date pub-type="epub">
<day>00</day>
<month>00</month>
<year>2007</year>
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<volume>3</volume>
<numero>se</numero>
<fpage>0</fpage>
<lpage>0</lpage>
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<self-uri xlink:href="http://socialsciences.scielo.org/scielo.php?script=sci_arttext&amp;pid=S1517-45222007000100001&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://socialsciences.scielo.org/scielo.php?script=sci_abstract&amp;pid=S1517-45222007000100001&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://socialsciences.scielo.org/scielo.php?script=sci_pdf&amp;pid=S1517-45222007000100001&amp;lng=en&amp;nrm=iso"></self-uri><abstract abstract-type="short" xml:lang="en"><p><![CDATA[The issue of socioeconomic inequalities is by and large addressed in terms of "extreme poverty" detached from the relational dimensions with "extreme wealth". The imbalance that characterises the latter is a result of multifaceted processes leading to the emergence of complex forms of appropriation and private enjoyment of socially produced wealth. Sociology needs to return to the debate in terms of social class and formulate new concepts for understanding the consequences of the current process on society as a whole, covering substantial wealth, personification of wealth, the affluent classes. At the same time it should be recognised that objective material hindrances and prejudice exist, which need to be overcome to allow progress towards the production of critical knowledge about the division of society into social classes and the forms of power and of subordination.]]></p></abstract>
<abstract abstract-type="short" xml:lang="pt"><p><![CDATA[O tema das desigualdades socioeconômicas é abordado, via de regra, considerando-se o "pólo pobreza" desvinculado das dimensões relacionais com o "pólo riqueza". A desmedida que caracteriza este último é decorrente de processos multifacetados levando ao surgimento de complexas formas de apropriação e de fruição privada da riqueza produzida socialmente. A retomada do debate em termos de classes sociais e a elaboração de novos conceitos tornam-se necessárias para que a Sociologia possa apreender as conseqüências do processo em curso sobre o conjunto da sociedade, entre eles, riqueza substantiva, personificação da riqueza e classes de fruição. Ao mesmo tempo, é mister reconhecer a existência de impedimentos materiais objetivos e de preconceitos que precisam ser superados para se possa avançar na produção de conhecimento crítico acerca da divisão da sociedade em classes sociais e das formas de poder e das modalidades de subordinação.]]></p></abstract>
<kwd-group>
<kwd lng="en"><![CDATA[social theories]]></kwd>
<kwd lng="en"><![CDATA[socioeconomic inequalities]]></kwd>
<kwd lng="en"><![CDATA[substantial wealth]]></kwd>
<kwd lng="en"><![CDATA[wealth concentration]]></kwd>
<kwd lng="en"><![CDATA[personification of wealth]]></kwd>
<kwd lng="pt"><![CDATA[Teoria Social]]></kwd>
<kwd lng="pt"><![CDATA[Desigualdades socioeconômicas]]></kwd>
<kwd lng="pt"><![CDATA[Riqueza substantiva]]></kwd>
<kwd lng="pt"><![CDATA[Concentração da riqueza]]></kwd>
<kwd lng="pt"><![CDATA[Personificação da riqueza]]></kwd>
</kwd-group>
</article-meta>
</front><body><![CDATA[ <p><font face="verdana" size="4"><b>Socioeconomic inequalities: concepts and research    problems</b></font></p>     <p>&nbsp;</p>     <p><font face="verdana" size="3"><b>Desigualdades socioecon&ocirc;micas: conceitos    e problemas de pesquisa</b></font></p>     <p>&nbsp;</p>     <p>&nbsp;</p>     <p><font face="verdana" size="2"><b>Antonio David Cattani</b></font></p>     <p><font face="verdana" size="2">Professor of Sociology – Universidade Federal    do Rio Grande do Sul</font></p>     <p><font face="verdana" size="2">Translated by Nicholas Rands    <br>   Translation from <a href="http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1517-45222007000200005&lng=en&nrm=iso&tlng=pt" target="_blank"><b>Sociologias</b>,    Porto Alegre, n.18, p. 74-99, July/Dec. 2007</a>.</font></p>     <p>&nbsp;</p>     ]]></body>
<body><![CDATA[<p>&nbsp;</p> <hr size="1" noshade>     <p><font face="verdana" size="2"><b>ABSTRACT</b></font></p>     <p><font face="verdana" size="2">The issue of socioeconomic inequalities is by    and large addressed in terms of "extreme poverty" detached from the relational    dimensions with "extreme wealth". The imbalance that characterises the latter    is a result of multifaceted processes leading to the emergence of complex forms    of appropriation and private enjoyment of socially produced wealth. Sociology    needs to return to the debate in terms of social class and formulate new concepts    for understanding the consequences of the current process on society as a whole,    covering substantial wealth, personification of wealth, the affluent classes.     At the same time it should be recognised that objective material hindrances    and prejudice exist, which need to be overcome to allow progress towards the    production of critical knowledge about the division of society into social classes    and the forms of power and of subordination.</font></p>     <p><font face="verdana" size="2"><b>Key words:</b> social theories, socioeconomic    inequalities, substantial wealth, wealth concentration, personification of wealth.</font></p> <hr size="1" noshade>     <p><font face="verdana" size="2"><b>RESUMO</b> </font></p>     <p><font face="verdana" size="2">O tema das desigualdades socioecon&ocirc;micas    &eacute; abordado, via de regra, considerando-se o &quot;p&oacute;lo pobreza&quot;    desvinculado das dimens&otilde;es relacionais com o &quot;p&oacute;lo riqueza&quot;.    A desmedida que caracteriza este &uacute;ltimo &eacute; decorrente de processos    multifacetados levando ao surgimento de complexas formas de apropria&ccedil;&atilde;o    e de frui&ccedil;&atilde;o privada da riqueza produzida socialmente. A retomada    do debate em termos de classes sociais e a elabora&ccedil;&atilde;o de novos    conceitos tornam-se necess&aacute;rias para que a Sociologia possa apreender    as conseq&uuml;&ecirc;ncias do processo em curso sobre o conjunto da sociedade,    entre eles, riqueza substantiva, personifica&ccedil;&atilde;o da riqueza e classes    de frui&ccedil;&atilde;o. Ao mesmo tempo, &eacute; mister reconhecer a exist&ecirc;ncia    de impedimentos materiais objetivos e de preconceitos que precisam ser superados    para se possa avan&ccedil;ar na produ&ccedil;&atilde;o de conhecimento cr&iacute;tico    acerca da divis&atilde;o da sociedade em classes sociais e das formas de poder    e das modalidades de subordina&ccedil;&atilde;o. </font></p>     <p><font face="verdana" size="2"><b>Palavras-chave:</b> Teoria Social, Desigualdades    socioecon&ocirc;micas, Riqueza substantiva,Concentra&ccedil;&atilde;o da riqueza,    Personifica&ccedil;&atilde;o da riqueza. </font></p> <hr size="1" noshade>     <p>&nbsp;</p>     <p>&nbsp;</p>     <p><font face="verdana" size="3"><b>Introduction</b></font></p>     ]]></body>
<body><![CDATA[<p><font face="verdana" size="2">Brazil breaks records in the different tables    of socioeconomic inequalities, yet scientific research is still unable to explain    the specific dimensions of the processes of this situation. This article stresses    the seriousness of the phenomenon and presents some empirical evidence of the    huge disparity between "extreme poverty" and "extreme wealth". The fact that    much more is known about the former than the latter leads us to further emphasise    particular dimensions which we call "substantial wealth" to indicate the nature    of the economic resources being accumulated and concentrated in the hands of    the few, the scale of which allows renewed exercise of power in relation to    control of society and inter-capitalist competition.</font></p>     <p><font face="verdana" size="2">Impressive amounts of social wealth are appropriated    and enjoyed in ways that were thought to have been overcome by capitalist modernisation.    New heuristic concepts that can contribute to clarifying the processes and thus    reduce the lack of current explanation are needed for a more accurate assessment    of the return to old practices or new conduct allowed by extreme concentration    of income.</font></p>     <p><font face="verdana" size="2">Theoretical inadequacies and the existence of    preconceptions and material difficulties stand in the way of advancement of    knowledge about the burning questions of Brazilian sociability, the structuring    elements defining the perception of inequality, the legitimacy of power situations    and the correlatives of strength shaping social struggles.</font></p>     <p>&nbsp;</p>     <p><font face="verdana" size="3"><b>The imbalance</b></font></p>     <p><font face="verdana" size="2">Forceful and superlative adjectives are frequently    used in texts dealing with the Brazilian socioeconomic conditions. Abysmal levels    of economic inequality, stratospheric differences in income distribution, astonishing    contrasts between wealth and poverty, and other equally expressive formulations    are often used to account for inequalities which, in addition to having been    reproduced for centuries, are multiplying to unprecedented levels.</font></p>     <p><font face="verdana" size="2">Inequalities are sometimes perceived at an initial,    superficial, localised and factual level: lack of food on one side, huge waste    on the part of the privileged on the other; the most luxurious mansions standing    just a few meters from poverty-stricken shanty towns; millionaires and their    pets receiving advanced medical care and attention while millions of individuals    lack medicine and basic healthcare. The picture of differences is often grotesque,    pathetic or surreal. Great wealth is purposefully aestheticised in the media    or presented in journalistic articles emphasizing the "Belíndia" cross between    the wealth of Belgium the poverty of India, a Brazil of contrasts, the two Brazils,    etc. In both cases it is necessary to question the impact of this information    on perception and objective understanding of the inequalities. But in terms    of the major media, subjects related to poverty and inequality are ignored:    the 44 principal newspapers in the country, which account for more than 90%    of the print media, devote less than 2% of their content to the topic, while    in the main magazines the percentage is in the region of 0.7% (Andi, 2003).</font></p>     <p><font face="verdana" size="2">On a second level, based on scientifically obtained    information, data and statistics, the social structure is revealed in all its    rawness and complexity. Amidst other problematic dimensions of contemporary    conditions, the studies show the connection between extreme economic inequality    and illness, criminality and multiple forms of violence.</font></p>     <p><font face="verdana" size="2">Latin American realities point to absolute and    relative increases in numbers of poor and destitute. According to the Social    Panorama of Latin America (CEPAL, 2003), the total of Latin American poor, which    stood at 136 million in 1980 (40.5% of the population), had increased to 220    million (44%) 22 years later. The needy had increased from 18.6% to 19.4%, almost    100 million people, over the same period.</font></p>     <p><font face="verdana" size="2">Divergences in the conceptualisation of poverty    and destitution in Brazil have led to a Byzantine misunderstanding in assessing    the total number of individuals that may be classified as being in such conditions.     At one moment there is discussion of 30 or 40 million destitute, then there    are complaints about the inaccuracy of these figures and it is guaranteed that    those at the bottom of the social pyramid amount to no more than 23 million,    and the poor a little more than 50 million. "Only" 23 million plus "little more"    than 50 million accounts for almost half of the population of Brazil. Despite    miraculous forms of measurement removing 12 million poor from the poverty level    in the short period of one year (Rocha, 2003, p. 83) or even statistical refinements    allowing the interpretation that the situation is not so serious, with millions    of people moving above the poverty line each year, other sources tend to prove    the rhetorical maxim: Brazil is not a poor country, but a country with many    poor. Deeper analysis of the conditions reveals a multifaceted picture which    is not confined to material needs or hardship. The survival of more than half    the economically active population depends on the informal sector (DIESSE, 2001),    24 million are considered to be seriously disabled, and situations of vulnerability,    instability and social and economic variation are constantly recreated by productive    restructuring (Cattani, 2000. p 37/83).</font></p>     ]]></body>
<body><![CDATA[<p><font face="verdana" size="2">Distribution of income has remained unchanged    over the past 30 years. Three decades ago the poorest 40% earned 11% to 12%    of national income: they and intermediate classes earned half the national income,    while the richest 10% earned the other half.  This latter portion also includes    great concentration in the hands of a few, leading to it being said that in    a country of 180 million people, approximately 50,000 individuals control more    than half the national income.  Military regime, New Republic, three periods    of liberal government and a government more attuned to popular requirements,    stagnation and the return to development, hyperinflation and price stability:    nothing has substantially altered the distributive regime which puts Brazil    among the four worst countries according to the Gini Index, in a low position    in the Human Development Index ranking and in other negative positions in measurements    of life expectancy, literacy, violence, education levels, healthcare, etc. (Neri,    2003; IBGE, 2003; Mir, 2004; Pochmann, 2004). A reduction in the number of families    below the poverty line has been seen in recent years. However, socioeconomic    inequality is not measured by an arbitrary income line below which the poor    are placed, but rather by the distances between the relative positions occupied    by the various segments of society.</font></p>     <p><font face="verdana" size="2">The imbalance is also proven by other indicators.     7% of income-tax payers own more than 35% of the property. (Medeiros, 2005,    Table 1); the total retirement and pension benefits received by the poorest    60% amounts to 20% of national funds, while the richest 2% receive the same    amount. (Medeiros, 2005, p. 181). Such is the proportion, or rather disproportion,    between the retirement and pension sums paid by the public welfare system.</font></p>     <p><font face="verdana" size="2">Budgetary performance by the federal government    also demonstrates huge inequalities. While the effective spending by the "social"    ministries, excluding welfare (Education, Health, Work and Employment, Agrarian    Development, Social Assistance, Human Rights, Food Security and Combating Hunger,    Women's Policies) amounted to 74 billion Reais in 2003, debt servicing (essentially    interest payments) amounted to 149 billion Reais (Cintra, 2004). Reinaldo Gonçalves    (2003) points out that the richest 1% of the population of Brazil holds 72%    of federal public titles, leading one to suppose that billions of dollars are    transferred into their accounts each year.</font></p>     <p><font face="verdana" size="2">Inland Revenue data (2004) indicates that 48%    of taxes raised in Brazil come from consumption taxes, 21% from income and only    4% from property. These latter two figures are the lowest of all countries on    the list of the world's 20 greatest economic powers. In the United States for    example, 6% of taxes come from consumption, 49% from income, and 11% from property.    In Brazil, the tax on consumption means that proportionally it is the poorest    who pay the most tax; income tax is not very important and tax on property transfer    and inheritance is insignificant. Taxation on great fortunes is a taboo subject    and any move in this direction provokes business mobilisation and virulent reactions    amongst the privileged sectors; economic columnists and opinion formers are    mustered to launch the spectre of flight of capital and discouragement of productive    investment.</font></p>     <p><font face="verdana" size="2">Numerous other indicators can be called upon    to quantify such extreme conditions and qualify the imbalance between "extreme    wealth" and "extreme poverty". For example, the richest 1% controls more than    50% in relation to shares and finance, ownership of productive land and industrial    plant and also the liquid assets of companies (Gonçalves, 2003). Outward symbols    of wealth (the numbers of private jets, mansions, servants), conspicuous consumption    and public ostentation of the highest luxury are indicators that characterise    the islands of wealth and privilege surrounded by seas of poverty.</font></p>     <p><font face="verdana" size="2">Several researchers (Medeiros, 2004, Pochmann,    2004) have also shown that the rich "hide themselves away". Fear of kidnap,    shady dealings with the "bandit economy", privilege and huge fortunes acquired    illegitimately and above all fear of fiscal control that could lead to higher    taxation hinder knowledge of the real scale of the fortunes. It all leads to    the belief that the volumes of substantial wealth are even higher than indicated    in the available data. As a consequence, "extreme wealth" is further from "extreme    poverty" than is commonly imagined. And the distance is increased by volumes    of wealth appropriated and administrated through illegal strategies which, by    definition, avoid any accurate records and are inaccessible for scientific research.</font></p>     <p><font face="verdana" size="2">Knowledge about the actual social abyss between    classes, about the real distance between the rich and the poor and the origins    of part of the possessions of the richest can therefore be seen to be one of    the greatest challenges for Brazilian Social Scientists.</font></p>     <p><font face="verdana" size="2">Based on the amount of wealth and accumulation    of annual income flow, Márcio Pochmann (2004) considers that the truly rich    amount to little more than five thousand families, 0.01% of the national total,    mostly concentrated in Rio de Janeiro and São Paulo. Even if this author has    exaggerated his criteria and if this figure were to be multiplied four-, five-    or even tenfold, the richest social stratum would consist of only 0.1% of Brazilian    families.</font></p>     <p><font face="verdana" size="2">Despite the high degree of arbitrariness and    inaccuracy of the indicators adopted, the imbalance can be considered based    upon this data: substantial wealth is owned by little more or less than 0.1%,    which is decisive in strategic issues related to the capitalist economy, speculative    investments and development plans; 0.1% control the major media and through    it can mould public opinion, launch fashions, promote or denigrate leaders;    0.1% exercise decisive influence on political life, the initiatives of the executive    and legislature in their different spheres, even being able to determine important    decisions by the judiciary.</font></p>     <p><font face="verdana" size="2">Using the also arbitrary 1% used by Reinaldo    Gonçalves (2003),  and referred to in studies by IPEA, FGV and IBGE,  we would    come to a total of one million eight hundred thousand Brazilians at the top    of the social pyramid. The essential feature of this absolutely minority segment    is accumulation of economic capital and multiple privileges that guarantee not    just power but also social recognition and legitimacy. The previous 0.1% is    also part of this together with a heterogeneous group of businesspeople from    a wide range of sectors, people with private income, big landowners, professional    classes and top public employees that can be classified as class A, dominant    sectors, the high bourgeoisie, the economic elite, or simply the very rich.    Nevertheless, one million eight hundred thousand people is a considerable number,    able to drive a distinct market of (in this case luxury) goods and services,    establish direct subordinate relations with cohorts of different levels of service    providers (administrators, lawyers, assorted advisors, beauticians, doctors,    security companies, personal trainers, drivers, gardeners, etc.) and able to    affect specific dimensions of life in society.</font></p>     ]]></body>
<body><![CDATA[<p><font face="verdana" size="2">Understanding the sociological significance of    this section needs to be founded on a theory of social stratification that allows    definition of the unity of class interests, the foundations of its power and    the nature of the social relations established with the rest of society. This    can be dispensed with, however, to emphasise the extreme polarisation in the    Brazilian case, stressing the disproportionate socioeconomic inequality that    lies in just the existence of an infinitely smaller segment retaining the wealth,    power and prestige articulated cumulatively in relative and absolute terms.    (Medeiros, 2004a). The entire population is marked by profound inequalities    and distinct levels of resources and wealth, but we are interested here in emphasising    the chasm between 1% and 99% of the population.</font></p>     <p><font face="verdana" size="2">This situation has remained virtually unchanged    for more than three decades. Added to the structural conditions is a growing    conceptualisation of new dimensions outlined below.</font></p>     <p>&nbsp;</p>     <p><font face="verdana" size="3"><b>Substantial wealth</b></font></p>     <p><font face="verdana" size="2">The expression substantial wealth is a concept    used to reinforce the evidence of imbalance. By substantial wealth we understand    the considerable volume of concrete resources, essential assets and property    that allow the exercise of power and guarantee impunity or even the use of force.    These are not abstract dimensions such as symbolic or cultural capital, prestige    or status, but rather a large amount of objective elements (means of production,    shares, money, property, assets) ensuring domination in the multiple correlations    of power in the economic, political and social fields.</font></p>     <p><font face="verdana" size="2">The truly rich possess substantial wealth, which    distinguishes them from the "economic elites" or simply the "elites", which    are inaccurate or ambivalent concepts that refer to influential and prestigious    but not necessarily rich people, whose social recognition can be won by talent,    merit or diligence. Substantial wealth is expressed in terms of volume of concentrated    capital.  Owners of the means of production who contract the workforce for extraction    of surplus value are essentially capitalists irrespective of the amount of capital    employed. But there is an important difference between a determined amount of    capital divided among tens or hundreds of capitalists and this same amount controlled    by a single individual or family. This is a complex question of scale and proportion    in the possession of wealth. Magnates and billionaires form the hyper-bourgeoisie    (Duclos, 2002), the super-rich (Haseler, 2000), a specific segment in the dominant    sectors with practices and reproductive strategies that distinguish them from    other capitalists.</font></p>     <p><font face="verdana" size="2">The existence of captains of industry, all-powerful    businesspeople, is nothing new in the history of capitalism. However, recent    data indicate a change in the scale of force and power of these figures. The    assets of the 200 richest people on the planet increased from 440 billion US    dollars in 1994 to 1,300 billion US dollars ten years later, a sum equivalent    to the income of 40% of the population of the planet. On one side of the scales    are 200 individuals, and on the other 2,400,000,000. The fortune of the five    richest people exceeds the Gross Domestic Product of dozens of countries (<a href="http://www.inequality.org" target="_blank">www.inequality.org</a>).     Unlike the old magnates that used to operate in isolation, beating the competition    to submission, the segment of super-rich moves on a global scale to form what    Kowalewski (1997) terms Global Establishmentism. They establish alliances that    reduce the self-nutrition of turbo-capitalism, uniting to implement economic    macro-initiatives to enable ideological domination through media events. Examples    of these initiatives include the boycott of the Kyoto protocol, the imposition    of patent policies prejudicial to poorer countries and financial and labour    deregulation. The ideological offensive is seen, among other instances, in the    mythification of neo-liberal figures through the non-existent "Nobel Economics    Prize" (really an award by the conservative-leaning Central Bank of Sweden),    and the spectacularisation of the directives formulated by business leaders    taking part in the Davos Economic Forum. </font></p>     <p><font face="verdana" size="2">Substantial wealth in Brazil appears without    the same level of articulation, but with no less effective power. Figures like    Antonio Ermírio de Moraes, Andrade Faria, Abílio Diniz and Rubens Ometto heading    economic empires influence decisions about the country's strategic economic    issues, investment that could cause greater ecological and social impact than    the public policies implemented by dozens of state secretaries and hundreds    of mayors. For example, companies used all expedients to impose the viability    of pulp factories in a determined region – which could cause serious environmental    problems due to eucalyptus monoculture –: purchasing advertising space in the    local media in such a way as to prevent unfavourable reporting, contracting    scientists and academics to neutralise criticism, applying direct pressure on    mayors and councillors.</font></p>     <p><font face="verdana" size="2">Marxist theory uses the generic and impersonal    term "company" to designate the institutional, organisational and operational    space of capital movement. It should be remembered that behind any initiative    are flesh-and-bone people who, if necessary, intervene directly and personally    to make expansion projects viable or unblock legal restrictions. It is not an    abstract entity that deals directly with governor, pressurises the newspaper    owner and makes contact with the university dean. It is a man with forename    and surname, a respectable business figure, a worthy supporter of philanthropic    (and political) campaigns, and illustrious patron of the arts, who makes use    of all expedients to obtain the necessary concessions or exemptions and, if    necessary, to guarantee impunity, or rather obtain advantages inaccessible to    other capitalists with lesser resources.</font></p>     <p><font face="verdana" size="2">The nature of capital, the logic of accumulation    and other principles governing capitalist reproduction are the same irrespective    of scale of capital. However, substantial wealth is an increasingly more important    differential, modifying the rules of competition, imposing accelerated processes,    sanctifying personalities and legitimising their actions.</font></p>     ]]></body>
<body><![CDATA[<p><font face="verdana" size="2">The concept of "perpetrators" formulated by Else    Oyen and used by Ramon Fogel in "Trabajo y producción de la pobreza em Latinoamérica    y el Caribe" (Alvarez, 2005) brings in practices reminiscent of North American    robber barons in the early and late 20<sup>th</sup> century (Guilhot, 2006).    The actions raised by powerful social groups multiply, moving large volumes    of resources which escape the conventional rules of the capitalist market. These    actions are not unspecific and in fact result in direct consequences on social    relations and public policies and also involve antisocial forms of appropriation    of wealth.</font></p>     <p>&nbsp;</p>     <p><font face="verdana" size="3"><b>The personification of wealth and the pleasure    classes</b></font></p>     <p><font face="verdana" size="2">Personification is understood as the process    of representation and realisation of the wealth in a person. The identification    of capital with the institutional form "company" corresponded to historical    reality. Marx said that capitalists are <i>trägers</i>, simple carriers of predetermined    relations of production, executing the necessary and inevitable functions for    reproduction of capital irrespective of their personal or human characteristics.    They are transitory figures, agents imperatively conditioned to obey the laws    of capital seemingly diluted in the institutional forms defined by words like    manufacture, great industry, industrial capitalism, etc. or making up generic    designations (owners, bourgeoisie, capitalist class).</font></p>     <p><font face="verdana" size="2">In the general evolution of capitalism the physical    existence or specific behaviour of isolated capitalists effectively mattered    little. The exceptions occur with the mythologies created around <i>sui generis</i>    figures like Henry Ford, John Rockefeller or J.P. Morgan, or more recently Bill    Gates and in Brazil, Barão de Mauá, Roberto Simonsen or Antonio Ermírio de Moraes.     Much more important were the performance of major, almost centennial companies    (BOEING, GENERAL MOTORS, IBM, NESTLÉ and many others) which are just a few examples    of institutions that have featured in the general movement of capitalist expansion.    Looked at from a highly abstract standpoint, even these cases are diluted in    the general form of wealth and the structural determinations of the mode of    production. The iron rule of accumulation imposed by class struggle (capital    v labour and the struggle between "brother-enemies") forces constant reinvestment    irrespective of personal inclinations. Avarice and prodigality are vices severely    punished in the process of reproduction of capital.</font></p>     <p><font face="verdana" size="2">The past 20 years have seen a rapid modification    of these general principles. Conduct that was previously isolated and penalised    by the rules of competition has become more common and legitimised. This private    appropriation of corporate profits was rarely seen throughout the 20<sup>th</sup>    century. Part of these profits is not reinvested in the "normal" production    process but is instead enjoyed in the private sphere.</font></p>     <p><font face="verdana" size="2">Two connected processes have ensured record profits    in the recent period: on one side is productive restructuring and growing automation,    speculative financing and the existence of easy transfer of income through tax    havens; on the other, reduced salaries and collective rights due to weakened    unions, fragility of contracts and the State's loss of transfer capacity. The    general impoverishment of workers is balanced by such increases in corporate    profits that there is no room for reapplication unless in more speculative processes,    resulting in greater profits which can then be transferred to individuals. </font></p>     <p><font face="verdana" size="2">Between 1990 and 2005, the minimum federal salary    of the United States fell by almost 10%, while salaries in the industrial sector    increased by 4.3%. Corporate profits during the same 15 years increased by 106.7%,    in an impressive transfer of income. Even more important is that payments to    executives (owners and salaried) of these same companies increased by 298.2%    during this period (Domhoff, 2006, Chart 7). Considering the same phenomenon    over a broader time frame it can be seen that chief executives received 50 to    60 times more than half the workers from 1960 to 1980. By the end of the 1990s    that difference had become 500 times more (Domhoff, 2006, Chart 6).</font></p>     <p><font face="verdana" size="2">There is no accurate data for Brazil, but it    can be assumed that the phenomenon is not only repeated here but may be even    more accentuated. The salaries of Brazilian executives are closely behind those    paid in the United States and France, and higher than remunerations seen in    the Netherlands, Spain and Germany. Pay differentials between directors and    the workforce are some of the highest in the world. Furthermore, a series of    subterfuges ensure that indirect remuneration such as share benefits and personal    expenses like housing, travel and leisure can be counted as industrial costs.    Recent business mobilisation against the so-called Super Tax and against legal    devices to expand the power of federal inspection is an indicator of lack of    fiscal citizenship. Multiple forms of evasion are converted into personal appropriation    and not into resources that return to companies in the form of investment.</font></p>     <p><font face="verdana" size="2">Another indicator of the impressive amount of    income appropriated by individuals from the highest levels of the wealthy is    the existence of the market for high-luxury products. Restricted-circulation    national magazines or those focused on yachting, real estate, jewellery and    aircraft (Touch<i> of Class, Platinum, "A", Cavallino, Lifestyle</i> and others)<i>    </i>display a gamut of merchandise and services that seem to correspond to the    lifestyle and consumption of the sheiks of Bahrain. The cast list of products    is priced in hundreds or millions of dollars and marketed in specialist outlets.    Advertising, and specialist marketing spaces and products to serve this consumer    category cannot be mistaken for similar ones intended for a middle class eager    for status but whose purchasing power only enables it attain fragments of the    authentic luxury market.</font></p>     ]]></body>
<body><![CDATA[<p><font face="verdana" size="2">Either way, controversial cases indicate that    exclusive environments have fluid boundaries. The most famous example is the    Daslú luxury store in São Paulo, whose clients are the very rich and "social    climbers" seeking to consume products and frequent places that indicate prestige    and possessions. Daslú is also an example of the business practices in this    sphere of trade and the reactions of the dominant classes to the civil authorities'    attempts at fiscal justice. The most luxurious store in the country was engaged    in contraband and evasion of federal and state taxes and some of its clients    acquired products with resources from slush funds. When the tax inspectors closed    it down and arrested its owners, high-society personalities criticised the Federal    Government for hitting at "the heart of the Brazilian elite".</font></p>     <p><font face="verdana" size="2">The personification of wealth points to substantial    resources being moved from the production sphere into a restricted high-luxury    market materialised in pharaonic homes (as the in the 'vertical mansions' in    São Paulo city costing tens of millions of Reais) and second homes in Aspen,    Palm Beach, the Bahamas and other mountain or tropical paradises; materialised    in prestige goods or used for enjoying particular services (princely travel,    gaming seasons in casinos, etc.) Although possessing no scientific rigour, Richard    Conniff's (2004) articles about rich North Americans are not imaginary and reveal    preposterous scales of conspicuous consumption, all leading to the belief that    this is repeated in Brazil. One of many examples is the fact that two dozen    Havaianas sandals encrusted with diamonds were marketed in 2003, priced at 58,000    Reais each, the equivalent of 20 years of a worker's minimum salary! If it were    possible to quantify the spending of some Brazilian millionaires during a single    weekend in Punta del Este or Monaco, it would be interesting to compare them    with healthcare or social exclusion secretariat expenses in a medium-sized town.</font></p>     <p><font face="verdana" size="2">Strictly private, personal appropriation of extraordinarily    high sums has always occurred in the history of capitalism and relates to the    intrinsic logic of the system, the absolute motivation of specific instrumental    action in relation to means and ends (Wright Mills, 1968; Domhoff, 2005; Lundberg,    1968, Haseler, 2000).  The feature of the new situation is the multiplication    of segments whose conduct recalls the conditions analysed by Thorstein Veblen    (1983) in the late 19<sup>th</sup> century United States and points to the existence    of a new form of social parasitism. Veblen saw the "leisured class" as the old    aristocrats, landowners and people of private means who enjoyed income from    outside industrial productivity. The segments we are referring to come from    the most profitable and... modern in contemporary economic activity, however.    These sectors extract impressive amounts of surplus value without needing to    fully reinvest it, allowing sterilisation of a significant amount in ostentatious    consumption or simply personal consumption. The amount of substantial wealth    and, consequently, of power is so great that they can dispense with some of    the political tasks for defending their class interests. In this case it would    be possible to talk of segments of "pleasure classes", a classification which    needs more rigorous and accurate theory and foundation.</font></p>     <p><font face="verdana" size="2">Personification of wealth and the pleasure classes    are usually a process connected with and unfolding into a phenomenon of growing    importance: mobility of wealth. The great fortunes of Third-World countries    do not need to be firmly anchored in their places of origin. They circulate    through tax havens and shift on the slightest hint of political difficulties    or tax and fiscal control, returning when speculative or even productive advantages    are conceded. The Inland Revenue estimates that at the start of 2001 approximately    100 billion dollars belonging to Brazilian individuals entered and left the    country according to possibilities for making high returns.</font></p>     <p>&nbsp;</p>     <p><font face="verdana" size="3"><b>Problems of research into wealth</b></font></p>     <p><font face="verdana" size="2">Many aspects make "extreme wealth", and particularly    substantial wealth into highly problematic research objects. The multiple obstacles    to apprehending and analysing the topic can be schematised into three blocks:    the first is related to the general theory of social organisation into classes;    the second is the explanation deficit, which is the existence of preconceptions,    insufficiencies and gaps in the Social Sciences which hinder approach to the    subject; the third concerns the material restrictions impeding access to reliable    information.</font></p>     <p><font face="verdana" size="2">Contemporary sociology retains the theoretical    conflicts which have marked the formation of social thinking around the essential    questions of power, social stratification and hierarchical relations. Society    and individuals are marked by multiple differences: the absence of homogeneity    is transformed into material and symbolic advantages and disadvantages according    to dynamics shaping the relations of power. Differences – hierarchies – inequalities    – order and disorder – conflict and consensus: this set of topics has formed    the motivation, the cornerstone of how society is considered. The approach to    these elementary issues will define two theoretically divergent routes; routes    with few meeting places.</font></p>     <p><font face="verdana" size="2">The issues of inequality and differentiation    are fundamental, since they form the first stage of constructing sociological    thinking and establish the base reference for complex theoretical elaborations.    It may be supposed that they are simple topics, with a consolidated literature,    stable theoretical reflection and consistent empirical verification. There is    none of this, however. The issues remain controversial and a good part of the    elementary questions and fundamental debates remain inconclusive. The observation,    interpretation and representation of this topic divide social thinking into    two relatively contradictory currents. On one side stands the theoretical framework    of Critical Theory, with a starting point of inequality polarised between social    groups due to ownership or not of the means of production; the inequalities    become socially relevant through class relations and conflict. This theoretical    viewpoint emphasises the issues of the material bases of domination (property,    specific organisation of the labour process), power and exploitation; the issue    of inequality has an explicit ethical and political dimension: moral condemnation    of the injustices associated with reflection and action towards overcoming the    material basis of class antagonisms.</font></p>     <p><font face="verdana" size="2">On the other side are the theoretical frameworks    that relate to the existence of multidimensional hierarchical differences, stemming    from non-deterministic situations and without absolute conditioning for individuals    (Bouffartigue, 2004). The concern therefore revolves around the confirmation/classification/comprehension    of structures and situations, indicating the significances and possibilities    of, sometimes individual, mobility, of the "society without direction" Weber.    The issues that arise are: socio-professional division, functional stratification,    integration, identity, culture (the weight of tradition, values), subjectivity    and so on.</font></p>     ]]></body>
<body><![CDATA[<p><font face="verdana" size="2">There has been a tendency to dilute the classic    critical formulations in recent years, with allegations that the classes have    lost any explanatory value. The domination of neoliberalism and the realism    of "market truth" seems to indicate the end of the "enemies of open society"    and with them conflict and inequalities. If this were the case only meritorious    differentiations of a taxonomic effort of social thinking would be the rule.</font></p>     <p><font face="verdana" size="2">The impoverished perception of social conditions    did not stand up for very long. The predatory practices of neoliberalism-guided    "turbo-driven capitalism" caused social regression even in advanced countries    (Bourdieu, 1999). The developing precariousness of labour, structural unemployment,    concentration of income and other (re)productive processes of inequality have    brought a return to the classic questions of the Social Sciences in terms of    social class, hierarchies, domination etc. (Bouffartigue, 2004).</font></p>     <p><font face="verdana" size="2">The problems of appropriate connection of the    broader theoretical frameworks with the concrete and of applying concepts covering    national or specific conditions persist, however. Controversial themes like    definition of the unity and homogeneity of classes are faced with the multiplicity    of situations arising from labour mutation (the informal sector, outsourced    and independent workers), for example, with the existence of Robert Castel's    formulation of the "useless for the world" and the growing pre-eminence of parasitic    people of private means.</font></p>     <p><font face="verdana" size="2">As the topic has a political connotation in dealing    with strongly disparate class relations and situations, there is always a risk    that moral and moralistic considerations will contaminate the analysis. The    previously synthesized concepts were formulated with heuristic intent as a means    of filling part of the gap between the great formulations and the objective    situations of reality. Although huge, Brazilian inequalities do not formulate    anything qualitatively different from what occurs in other capitalist countries,    but at the same time the knowledge of its historical persistence and in particular    the dynamic of power relations, come up against a kind of explanation deficit.</font></p>     <p><font face="verdana" size="2">This deficit takes many intellectual and material    forms, with specific causes and important consequences. Henri Lefebvre says,    "inequalities exist twice: firstly objectively and secondly in the representations    of the social world" (Lefebvre, 1969).  The blindness, or what Jessé Souza (2004)    calls the "opacity" that hinders comprehension of inequality is connected to    pre-reflexive processes affecting the privileged and the victims, naturalising    situations and conditionings. This may even be understandable in terms of public    opinion or common sense, but is unacceptable in scientific knowledge.</font></p>     <p><font face="verdana" size="2">Three situations stand out among the several    elements that explain why the Social Sciences have not progressed in understanding    this topic. The first concerns the generally shared perception that poverty    is a problem while wealth is not. Populations of the poor and destitute are    measured, quantified and analysed in their social, political psychological and    educational dimensions. Studies are made into electoral behaviour, life plans    and survival strategies to account for an apparently autonomous condition. Concern    with correct measurement of poverty (the precise poverty line, identification    of "the real poor", etc) is focused on improving social programmes and forms    of intervention. In the strange bellicose language of some public policies the    "war on poverty" aims to raise the living standards of the poorest and overcome    the poverty line. The same plethora of data and analysis does not exist in relation    to "extreme wealth" and thus an essential principal that Sociology singles out    in social life is erased: that socioeconomic inequality is not measured by a    minimum income line below which the poor are found. It derives from the distances    between the relative positions occupied by the various segments of society.    Even if the poor and destitute reached the minimum level, it would not mean    that conditions were balanced and socially just, as the key point is always    the relative dimension (Cattani 2007).</font></p>     <p><font face="verdana" size="2">The second situation concerns the issues explored    by Michel Pinçon and Monique Pinçon-Charlot: the researcher's huge distance    from the subject (lack of physical <i>hexis</i>, <i>habitus</i>, dominance of    the codes that allow better apprehension of the objects); the effect of the    object's domination over the researcher and the mistaken conditions of reception    of the subject as a theme of scientific knowledge, considering it on the one    hand futile or superfluous and on the other associating it with defence of the    case of the rich (Pinçon and Pinçon-Charlot, 1997). In the current conception    the person who studies the poor or social movements, for example, is progressive    and indentifies themself with popular causes; the person who studies the elites    is elitist! De-ontological questions could also be raised (problems with identification    of powerful figures or with the origin and enjoyment of certain fortunes), but    the problem is again raised in a single sense. The same concerns do not arise    in the case of the poor, who are scrutinised, identified and photographed without    restraint and their living conditions revealed in the smallest detail.</font></p>     <p><font face="verdana" size="2">Conditions exist for the two previous circumstances    to be overcome, but not for a third situation involving material difficulties.    The obstacles in some cases are practically insurmountable. As Pochmann (2004)    and Medeiros (2005) have argued, the rich hide themselves for a variety of reasons:    fear of kidnap, fear of stricter tax inspection, trepidation that the frequent    relationships between fortunes and illicit activities may be identified (Cattani,    2007). As if this were not enough, wealth has a multifaceted character, with    numerous sources of income and endless possibilities of investment that are    difficult to apprehend or measure. The real scale of substantial wealth is even    inaccessible to specialist governmental bodies and, if there is some form of    record, public access is forbidden by legislation that ensures privacy of bank    accounts and tax declarations.</font></p>     <p><font face="verdana" size="2">Indirect research also faces important barriers.    Access to the luxury clubs and condominiums is savagely refused by private security    systems and even the police. Not even the official research (PNAD, Census) has    managed to capture the basic dimensions of the richest segments, and in many    cases the data supplied does not correspond to the reality. It is difficult    to obtain information from employees, due either to complicity (excessive strictness    often corresponds to naturalised servitude) or fear of losing employment.</font></p>     <p><font face="verdana" size="2">To sum up, there is no interest whatsoever in    facilitating access to information that could question the legitimacy of the    positions of the dominant class. The obstacles have led many researchers to    abandon the topic, reminiscent of the strategy of the person who gives up looking    for a key lost in the dark to look for it elsewhere where there is more light!    In concrete terms, for every 100 studies about the Brazilian poor, there is    only one study about the rich (Bordignon, 2005).</font></p>     ]]></body>
<body><![CDATA[<p>&nbsp;</p>     <p><font face="verdana" size="3"><b>Final considerations</b></font></p>     <p><font face="verdana" size="2">There is no room for any peremptory conclusion    at the end of this article but instead for reaffirmation of some basic questions,    starting with the serious significance of extreme conditions of socioeconomic    inequality. The imbalance relates to constantly renewed conditions of appropriation    of social wealth by minority groups. The question of the scale or disproportion    between "extreme wealth" and "extreme poverty" is important in relation to cumulative    processes: offering advantages, privileges and prerogatives on one hand and    imposing conditions that morally, socially and biologically degrade and destroy    the greatest cosmic miracle: human life  (Boltvinik, Damián, 2004, p.11; Bihr    and Pfefferkorn, 1999). The two extremes are not self-referential and even less    self-sufficient, but are connected to relations of power that pervade the social    structure from top to bottom. The relational dimension is permanent and the    actions of the perpetrators in terms of violation of basic social rights and    licentious exploitation of workers has a cascade effect. It starts at the top    of the social pyramid and spreads down through intermediary groups until reaching    the segments at the bottom.</font></p>     <p><font face="verdana" size="2">One of the great challenges for the Social Sciences    is to renew the theoretical frameworks in order to reduce the explanation deficit,    eliminating preconceptions and overcoming material difficulties obstructing    access to the essential data about the foundations and strategies of wealth.    New focuses, new analytical perspectives are becoming necessary for producing    critical and provocative knowledge of society, expanding the horizons of awareness    and less elitist fields of political action.</font></p>     <p>&nbsp;</p>     <p><font face="verdana" size="3"><b>References</b></font></p>     <!-- ref --><p><font face="verdana" size="2">ALVAREZ, Sonia (org.)<b> Trabajo y producción    de la pobreza em Latinoamérica y el Caribe.</b> Buenos Aires: Clacso Livros.    2005.</font><!-- ref --><p><font face="verdana" size="2">ANDI – Agência de Notícias dos Direitos da Infância.    <b>Que país é este?</b> <b>Pobreza, desigualdade e desenvolvimento humano no    foco da imprensa brasileira.</b> São Paulo: Cortez, Unicef, 2003</font><!-- ref --><p><font face="verdana" size="2">BIHR, A. PFEFFERKORN, R. <b>Déchiffrer les inégalités</b>.    Paris: Syros, 1999</font><!-- ref --><p><font face="verdana" size="2">BOLTIVINIK, Julio and DAMIAN Araceli. (org.)    <b>La pobreza en México y em el mundo. </b>Mexico, Siglo Vieintiuno Editores,    2004.</font><!-- ref --><p><font face="verdana" size="2">BORDIGNON, Fabiane. Produção sociológica sobre    elites econômicas no Brasil. Porto Alegre, UFRGS-IFCH – Sociology Department.    End of course dissertation. 2005.</font><!-- ref --><p><font face="verdana" size="2">BOUFFARDIGUE, Paul (org.) <b>Le retour des classes    sociales</b>. Paris: La Dispute, 2004</font><!-- ref --><p><font face="verdana" size="2">BOURDIEU, Pierre (org.) <b>A pobreza do mundo.</b>    Petrópolis: Vozes, 1999.</font><!-- ref --><p><font face="verdana" size="2">CATTANI, A. "Riqueza substantiva e relacional"    in CIMADAMORE Alberto and CATTANI, Antonio David (org.). <b>Produção de riqueza    e pobreza na América Latina</b>. 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LE MONDE DIPLOMATIQUE, August 1998.;</font><!-- ref --><p><font face="verdana" size="2">GONÇALVES, Reinaldo. <b>A tradição e a ruptura.</b>    Rio de Janeiro: Garamond, 2003</font><!-- ref --><p><font face="verdana" size="2">GUILHOT, Nicolas. <b>Financiers, philanthropes:    sociologie de Wall Street.</b> Paris, Raisons d"agir, 2006.</font><!-- ref --><p><font face="verdana" size="2">HASELER, Stephen. <b>The Super-Rich</b>. 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"As teorias da estratificação    da sociedade e o estudo dos ricos". In BIB, nº 57, 1<sup>st</sup> semester 2004.</font><!-- ref --><p><font face="verdana" size="2">MIR, Luis.<b> Guerra civil.</b> São Paulo: Geração    Editorial, 2004</font><!-- ref --><p><font face="verdana" size="2">NERI, Marcelo (org.) <b>Retratos da deficiência     no Brasil. </b>Rio de Janeiro: FGV-CPS, 2003.</font><!-- ref --><p><font face="verdana" size="2">PINÇON, Michel and PINÇON-CHARLOT, Monique. <b>Voyage    en grande bourgeoisie. </b>Paris: PUF, 1997</font><!-- ref --><p><font face="verdana" size="2">POCHMANN Márcio. <b>Atlas da exclusão social.    </b>São Paulo: Cortez, 2004 (3 vol.)</font><!-- ref --><p><font face="verdana" size="2">RECEITA FEDERAL. O Imposto de renda de pessoas    físicas no Brasil. 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