The American Dream
Acknowledgments
Acknowledgment of Catherine, a senior lecturer in sociology specializing in family demography, School of Social Sciences, Education and Social Work at Queens University Belfast, Northern Ireland.
Acknowledgment of wife, Christine, for her understanding, patience, and helpful advice in completing this edition.
The American Dream: Origins and Prospects
The American Dream represents the idea that America is a land of opportunity.
Implies that with hard work, adherence to rules, and sufficient talent, individuals can overcome obstacles and achieve success.
Suggests a merit-based societal structure wherein success is reachable regardless of one's starting point in life.
Contradictions in the American Dream
While many Americans accept this ideal, realities often paint a different picture concerning economic mobility and success.
Social, economic, and luck factors influence opportunities beyond individual merit:
Money: "It takes money to make money"— the role of inheritance.
Connections: "It's not what you know, but who you know"—the importance of social capital.
Luck: Some opportunities arise simply from being in the right place at the right time.
Discrimination: The playing field is not level; unequal opportunities due to privilege.
Hypergamy: marital status can influence economic success.
Ambivalence towards Economic Inequality
Americans express conflicting beliefs regarding income and wealth distribution:
Support for meritocracy— "getting out of the system what you put into it."
Defense of individual property rights upon death—"the right to dispose of property as seen fit."
This creates a contradiction between individual freedoms and societal equality of opportunity.
Meritocracy Defined
Meritocracy: A social system where individuals earn rewards in direct proportion to their efforts and abilities.
The term was popularized by sociologist Michael Young in The Rise of the Meritocracy, 1870-2033.
Meritocracy is often linked to the American Dream, suggesting the existence of a society that operates on these principles.
Historical Context of the American Dream
First popularized by historian James Truslow Adams in 1931 in The Epic of America, which defined it as:
"A dream of a land in which life should be better, richer, and fuller for everyone, with opportunities for each according to his ability or achievement."
Rooted in the historical experience of the U.S. as a nation of immigrants.
Unlike European hierarchies, America showcases freedom to achieve based on merit.
Contrast between American democracy and European aristocracies described by Thomas Jefferson as a replacement of "birthright" aristocracy with a natural aristocracy of talent and virtue.
Tenets of the American Dream
Four tenets identified by Jennifer Hochschild in Facing Up to the American Dream (1995):
Who: Everyone, regardless of origin or station.
What: Reasonable anticipation or hope for success.
How: Individual actions under personal control.
Why: True success is tied to virtue.
Ideologies of Inequality
Ideologies serve as explanations for the prevalence and acceptability of inequality in society:
They must be persuasive enough for those with less to accept their position.
As the level of inequality rises, so too must the strength of justification for that inequality.
Historical justifications in various societies:
Feudal societies emphasized birthright and divine rights.
Slave societies used superiority claims.
Caste societies based inequality on reincarnation beliefs.
Currently, in the U.S., meritocracy serves as the dominant justification for inequality.
Merit, Freedom, and Individualism
Stress on individualism implies personal control over one’s destiny.
Religious Origins:
Protestant backgrounds of early colonizers imbued notions of individual achievement.
Max Weber's theory on the Protestant Ethic links hard work and frugality to early capitalist development.
Political and Economic Origins
Political Origins
The Declaration of Independence (1776) proclaimed individual sovereignty in life and liberties.
Revolutionaries created a governing system based on limiting state power and promoting individual freedoms.
Alexis de Tocqueville praised America's success in democratizing through individualism and equality.
Economic Origins
Free-market capitalism aligns with individual efforts and entrepreneurship.
Adam Smith’s work from 1776 emphasized self-interest and market forces, fostering a competitive environment.
Historical evolution set conditions for individual achievement but does not ensure equality of access to opportunities.
Cultural Origins
The frontier experience and the ideal of rugged individualism reinforced the American Dream ideologies.
Pioneering spirit linked with notions of democracy—disdain for aristocracy and special privileges.
Explanations for Inequality
Functional Theories: Equal rewards based on merit and effort.
Conflict Theories: Inequality is a result of surplus conflict and characterized by inheritance and privilege.
Both merit and non-merit factors contribute to one's economic outcomes, posing challenges in understanding these interactions.
Downsizing the American Dream
Achievement opportunities expanded for certain groups over time, but challenges persist, particularly for traditionally marginalized communities.
Historical improvement in living standards is contrasted with current declining prospects for achieving specific aspects of the American Dream:
Home Ownership
Tracking the American Dream: Study showed varying home ownership rates in the U.S. from 1940-1990.
Post-World War II ownership increased from 44% in 1940 to 62% in 1960.
Home ownership rates peaked at 69% in 2004 but significantly dropped during the Great Recession (2008).
Opportunities for the Next Generation
Changing economic dynamics reduced mobility:
1940 cohort had a 92% chance of earning more than their parents, dropping to 50% for those born in 1980.
However, education levels have increased significantly.
Chances to Get Rich
Rags-to-riches stories now less common due to corporate hegemony.
Entrepreneurship is harder in a market dominated by established corporations.
Secure Retirement
Traditional supports like Social Security and pensions face challenges:
The retirement system is projected to become unsustainable without reforms.
Conclusions
Overall prospects for home ownership, generational mobility, chances for wealth acquisition, and secure retirement have eroded.
Likely to be more attainable for those with existing wealth and privilege.
Plan of the Book
Chapter on merit characteristics linked to success.
Discussion on inheritance advantages.
Exploration of social and cultural capital's role in access to opportunities.
Education’s complex relationship with mobility.
Analysis of entrepreneurship and its decline against corporate dominance.
Examination of labor market dynamics concerning job availability.
Influence of marriage on economic mobility.
Impact of discrimination on equality and meritocracy.
Discussion on the increasing economic inequality in contemporary society.
Discussion Questions
Personal interpretation of the American Dream.
The uniqueness of the American Dream across different cultures.
Expectations for opportunities compared to predecessors.
The relationship between functional and conflict theories.
Achievable outcomes associated with the American Dream for individuals.
References
Adams, James Truslow. 1931. The Epic of America. New York: Blue Ribbon Books.
Board of Governors of the Federal Reserve System. 2022. Economic Well Being of Households: Retirement and Investments. Retrieved from Federal Reserve.
Chetty, Raj, et al. 2016. The Fading of the American Dream. National Bureau of Economic Research, Cambridge, Massachusetts.
Devaney, F. John. 1994. Tracking the American Dream. U.S. Census Bureau.
Federal Reserve Bank of Saint Louis. 2022. Student Loans Owned and Securitized. Retrieved from Federal Reserve.
Hochschild, Jennifer. 1995. Facing Up to the American Dream. Princeton, NJ: Princeton University Press.
Tocqueville, Alexis. [1835] 1967. Democracy in America. New York: Schocken Books.