Introduction The issues of stratification and sexual discrimination are a topic of intense debating in American society. The USA was built upon a history of discrimination and the forceful accumulation of wealth, creating vast socio-economic differences that could be perceived today. The purpose of this paper is to analyze the effects of poverty on people and the perception of stratification and discrimination through the prism of functionalism and conflict theory. Social Stratification Social stratification stands for the separation of people into different groups (strata) based on their wealth, education, socio-economic position, status, and derived power (Gurski, 2018). The initial power structures and social rankings were historically formed based largely on physical force. Those with greater ability, strength, and power formed the ruling classes of ancient societies. The lowest stratum was comprised of slaves who received no protection and were exploited (Keel, 2008). Having power, prestige, wealth, and other desirables improve not only the quality of life but the potential for acquiring and multiplying those over time as well. Davis and Moore’s functionalist perspective of social stratification claims that the hierarchy is based on ability and merit, with some occupations having more value to the society than others (Gurski, 2018). Conflict theory, on the other hand, points out to the inconsistencies of such a view stating that the ability to acquire the necessary resources to ascend to higher strata are often withheld from the majority of the people resulting in an unfair accumulation of power in the hands of the ruling elites (“Sociology 302,” 2008). To summarize, the functionalist theory claims social stratification is, fundamentally, based on the hierarchy of competence, whereas conflict theorists assess that while it may have initially started that way, current elites maintain their power not through merits but through a plethora of advantages accumulated over centuries of exploitation. Social Inequality and Discrimination Gender discrimination is a word used to describe prejudice and unfair behavior of one group of people to another based on sex and gender (Gurski, 2018). Historically, it is associated with the treatment of women, who have been treated unequally for the longest time. Since early societies were largely based on the rule of strength, women were forced into a lower socio-economic standing by men, who were, on average, physically stronger. The structural and cultural factors that reinforce the idea of female inferiority include traditions, religion, and treatment of women by social institutions (Gurski, 2018). Women were not allowed to vote and take part in important social events, were barred from numerous prestigious and high-earning professions. The historical consequences of centuries of inequality and poverty are far-reaching in modern society. As it stands, the median wage gap between men and women is at 73% (Keel, 2008). Although paying less to women for the same work based on gender stereotyping is illegal in most countries, the median differentiation indicates the reluctance of women to apply for higher-paying segments of the industry, such as computing and engineering (Gurski, 2018). While t