Thursday, December 8, 2016
Achieving The American Dream Changes With The Year You Were Born
The American dream is that we will earn more than our parents. This study shows that 92% of Americans born in 1940 achieved the American dream; they earned more than their parents. The bad news is that the percent achieving the American dream has fallen steadily over time. Less than 50% of Americans born in 1980 are earning more than their parents. The American dream has become harder to achieve despite rising productivity. It is affected by the economic growth rate and by the level of inequality. The rise in income inequality is the primary reason why our chances of achieving the American dream have declined over time. The rise in inequality is explained by a number of factors in this study. We can reverse the inequality trend, that accelerated beginning in the 70"s, by changing the policies that are associated with rising inequality. That is the only way that we can make the American dream more achievable.