Do Financial Situations have an Effect on Social Capital?

Social capital can be described simply as the glue that holds society together. Social capital is the networks connecting individuals within communities to each other through clubs, organizations, and groups. It’s one of the most important parts of a functioning society, and creates a sense of unity and togetherness.

Social capital is also important because it is the framework for civic virtue and engagement in a community. As Putnam stated in his book Bowling Alone, “social capital is closely related to what some have called ‘civic virtue’. The difference is that ‘social capital’ calls attention to the fact that civic virtue is most powerful when embedded in a dense network of reciprocal social relations” (Putnam 19). Social capital and civic engagement are closely connected and when discussing the decline of civic engagement in America we must also consider the social capital of communities.

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For some perspective, examples of social capital include women’s Bible study groups and the Knights of Columbus, exclusive organizations in which members bond with each other within the groups. Groups such as youth service organizations and social justice groups are considered more inclusive organizations that bridge gaps between individuals and different groups. Both types of social capital are important to the framework of societies. 

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The main premise of Bowling Alone was that social capital in America has been declining over the past half of the century. The author listed a multitude of reasons and factors behind this decline in his book. Some of the answers he listed for this decline included busyness, suburbanization, and the electronic revolution. However, one possible cause for the downward trend of social capital that caught my eye was economic pressures. 

When discussing social capital and its benefits to society, we often leave out the unspoken requirement that comes with being an active member of society. Most of the clubs and organizations that maintain social capital and hold society together require more money, resources, and privileges than we realize. As a result, levels of civic engagement and participation in social activities are lower in low-income communities. 

Lower-income individuals do not have as much access to higher education than middle and upper-class citizens and as a result, “studies reveal that greater civic engagement, such as more trust and better voter turnouts, is generally correlated with a higher level of educational attainment. If one attends a high school or college, they have better access to knowledge about important issues through their classes or club meetings, and are therefore more likely to engage in volunteer efforts” (Nath 7). Families that face economic stressors are often unable to send their children to institutions of higher learning and due to this fact, these individuals are unable to participate in strengthening their social capital.

Additionally, many of these clubs and groups require entrance fees or fees that come along with becoming a member of the group. Country clubs require a substantial amount, in the forms of a first-time membership fee, annual dues, and other miscellaneous dues required in order to stay a member. Other, less rigid groups still require members to have some level of money and resources. Book clubs rely on members being able to purchase books, the Knights of Columbus depend on members being able to make sizable donations, and even casual sports teams require members to be able to pay for equipment and gear.

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For individuals facing economic hardships and financial stressors, these ‘small’ prices to pay to be part of a group can add up. Not to mention transportation to such groups dedicated to building social capital requires money as well. Individuals who work many jobs in order to sustain themselves and potentially their families simply do not have time in the day to spend being part of clubs and organizations. Some other financial stressors that affect social capital include “stress from working long hours at low wages, tight work schedules, demands of taking care of children when they are unable to afford child care” (Nath 8).

While all this information seems to point towards financial situations having a negative effect on the levels of social capital in the United States currently, there is hope for future generations. Studies have shown that in the last couple of years youth of lower socioeconomic status are linked to higher levels of civic engagement and attention to social capital. Erin Godfrey studied the difference in participation in social activities between youth and adults in lower-income communities and found that for “youth who do not occupy an advantaged position in the hierarchy, greater inequality could lead to greater awareness of inequity, more critical consciousness, greater sense of purpose around civic engagement, and more importance placed on helping others in the community” (New York University). In conclusion, although individuals facing economic hardships struggle with more challenges than their wealthier peers when participating in social relationships, there is evidence to suggest that the younger generations are finding ways to increase social capital in their lives and hopefully one day will reverse the downward trend of social capital in the United States. 

Sources:

Great Valley Publishing Company, Inc. “News.” Youth Are Civically Engaged,Despite Income Inequality, https://www.socialworktoday.com/news/dn_111116.shtml. 

Nath, Saheli. “Civic Engagement in Low Income and Minority Neighborhoods, and the Role of Public Investment.” “Civic Engagement in Low Income and Minority Neighborhoods” by Saheli Nath, https://digitalcommons.iwu.edu/uer/vol9/iss1/8. 

Putnam, Robert D. Bowling Alone: The Collapse and Revival of American Community. Simon & Schuster Paperbacks, 2020. 

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