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The American Dream is Dead

Mar 09, 2011 | By: Mr_Blue | Tags: income inequality, economic mobility, american dream

It is time we recognize that the American Dream is dead. We need a new Dream - one that can be realized by most Americans.

The American Dream, while not experienced by many Americans, was based on the idea that we were rewarded for our hard work. These rewards included economic mobility and things that went along with mobility such as a single-family home. This Dream is gone. Now our economy is creating a Land of Unequal Opportunity. Here is further evidence that the American Dream is dead and that we are living in the Land of Unequal Opportunity:

1) Income inequality + No economic mobility = Land of Unequal Opportunity [and a caste system]: H/T to Mark Thoma for this story: Inequality and mobility at the top. Lane Kenworthy states this very important point:

For the bulk of the population — everyone but the richest — we have multiple sources of mobility data. One is the Panel Study of Income Dynamics (PSID); another is earnings records from the Social Security Administration. Both indicate that there has been no increase in income mobility in recent decades (see also here). [emphasis added]

2) From the Financial Times: Hardship on rise for middle class [I would like to actual article it but registration is required]. The article recites a very disturbing reality:

59 Million American are enrolled or qualify but haven’t enrolled for the Supplemental Nutrition Assistance Program (food stamps). This 19% of the U.S. population.

More unequal opportunity abound.

It’s time we wake up - the American Dream is dead. It’s time we create a new Dream. A Dream that can be experienced by most Americans. A Dream based on solidarity, equity, diversity and self-management (more on this in the near future). We can do this.

Good luck.