Since its inception, the idea of the American Dream has become synonymous with the idea of America itself. It has become a source of hope and ambition for many, dreaming of a better life with unlimited possibilities and opportunity. People around the world have viewed America as a land of opportunity – where anyone can achieve success, regardless of their background or social status.
But even as the American Dream has been viewed as a beacon of hope and prosperity, there is an increasing recognition that the promise of the American Dream has failed many. In its place, a growing number of Americans now perceive an ongoing sense of insecurity about their futures. The effects of the coronavirus pandemic, along with joblessness, poverty, inequality, prejudice and systemic racism, are all taking a toll on the American Dream’s once lofty promises.
The Current Reality: Causes of the American Dream’s Decline
Inequality and Poverty
The current reality of poverty and inequality in America is a direct result of the country’s misguided policies and priorities. From inadequate welfare programs to structural racism to poor educational opportunities, economic mobility has been restricted and confined to a very narrow sector at the top of American society. According to an NPR report, the top 1% now owns more than the bottom 90%. Similarly, the latest Census figures reveal that the poverty rate has been consistently above the pre-recession level dating back to 2007.
What’s worse, those who are stuck at the bottom have been hit hardest during the pandemic. The Pew Research Center found that the financial future of Americans in the bottom quintile was the most precarious, while their incomes remained the most vulnerable to job loss and other economic shocks.
Unaffordable Education
The cost of obtaining a college degree has steadily increased, making it increasingly unaffordable for many Americans. With tuition costs more than tripling since the 80s, the cost of higher education in the U.S. has now surpassed the cost of college education in developed nations like Canada and the U.K. According to the National Center for Education Statistics, the average cost of a four-year degree for a public university is more than $20,000, and the average cost of a four-year degree for a private college is almost twice that.
Furthermore, this daunting expense is compounded by the rising costs of living expenses, resulting in a majority of students having to take on huge amounts of student loan debt just to make ends meet. Student loan debt now exceeds $1.5 trillion, with millions of graduates bordering danger of defaulting on their loans.
Racism and Systemic Discrimination
The U.S. has long struggled with racism, particularly when it comes to economic opportunities. Systemic racism is reflected in the poverty and unemployment statistics, in which African Americans, Latinos, and other minority groups are significantly more likely to be poor and unemployed than whites.
Additionally, the job market has been more difficult for minorities and disadvantaged groups due to discrimination and prejudice, in addition to certain legal restrictions barring certain ethnicities from certain positions as explicitly stated in laws. The U.S. Department of Labor reported earlier this year that the African American unemployment rates are nearly twice as high as the white unemployment rates – a deeply concerning ratio.
Impact of the American Dream Decline
Stagnant Wages and Joblessness
The weakening of the American Dream has had detrimental effects on the country’s economic prospects and competitiveness. Despite US productivity growing over 22% since 2000, wages for both median and non-median households have been largely stagnant in recent years, reinforcing the idea that the American Dream is in a state of decline.
This has been further compounded by the coronavirus pandemic, resulting in a drastic increase in job loss and unemployment. In the month of June alone, 5.2 million jobs were lost and the unemployment rate increased to 13.3%. Underscored by reports that show an overall decrease of job openings and hiring, this bleak reality reflects a worrisome trend about the future of the American job market.
A Fragile Family Structure
The reduced economic security has also impacted the stability of family structures in the U.S. The LA Times reports that increasing financial insecurity has been linked to higher divorce rates, and with some prognosticators worrying that U.S. unemployment rates could remain high in the long term, it’s possible that the American family structure could become increasingly fragile and subject to everyday pressures.
At the same time, the Associated Press reports that traditional labor-based families, which serve as a cornerstone of American society, are quickly disappearing in many parts of the country. This is partly due to the high costs of education, meaning that there’s less room for parents to support their children financially in pursuit of the American Dream.
The American Dream has long been viewed as one of a prosperous life, with access to upward mobility and financial independence. But the reality is that for a large portion of the population, the once-illustrious star of the American Dream has faded away.
Nevertheless, it’s important to keep in mind that the solutions to this crisis extend far beyond the domain of economics. America needs to take a more holistic approach by tackling broader issues such as inequality and systemic racism, providing a wider range of educational opportunities, and creating pathways to economic stability and security. It’s time to tip the scales of inequality in America, and the only way this can happen is through collective effort and government investment.
That is why it is of utmost importance to work towards reviving the promise of the American Dream and creating an economy that works for everyone. We must start building an economy which parents can trust will take care of their children, not just their own generation. It’s an uphill battle, but together, we can make strides towards a brighter future.
