Opportunity Hoarding

How the American Upper Middle Class is Leaving Everyone Else in the Dust

Introduction

• Richard V. Reeves discusses the widening gap between the upper middle class and those in lower economic strata, exploring implications and solutions.

Opportunity Hoarding

• Definition: Opportunity hoarding refers to the upper middle class maintaining advantages not solely through merit but by creating barriers that prevent others from competing.

  • Exclusionary zoning, unfair college admissions, and unpaid internships are highlighted as specific instances where opportunity hoarding occurs.

Moral Considerations

• The question arises: How far should parents go to help their children succeed?

  • Parents can enhance their child’s life without conferring competitive advantages over peers. Philosophers Harry Brighouse and Adam Swift argue against advancing one child's prospects at the expense of another’s due to the finite nature of societal rewards.

  • Distinction: Actions that genuinely foster a child’s growth should not also unfairly disadvantage peers.

  • Example: Encouraging children to excel academically (merit) vs. bribing a coach for sports (non-merit-based advantage).

Types of Opportunity Hoarding

1. Exclusionary Zoning

   • Local regulations often restrict development in affluent neighborhoods, leading to resource hoarding and exacerbating inequality.

   • Robert Putnam highlights that zoning laws in cities can lead to segregation of affluent communities and restrict access for lower-income families.

   • Statistics: 95% of residents in major U.S. cities operate under some zoning law.

   • Recommendations for reform include loosening zoning laws to enhance economic mobility and diversity.

2. College Admissions

   • Practices such as legacy admissions favor children of alumni, skewing the admissions process and often disadvantaging equally qualified candidates from non-elite backgrounds.

   • Data: Legacy students at top colleges are accepted at rates 2-3 times higher than non-legacies, with the effect comparable to adding considerable SAT points to an application.

   • Example: Notable figures such as Jared Kushner illustrate how donations influence admissions unnoticed by the general public.

3. Internships

   • The culture around internships benefits upper middle-class students, often available only to those whose families can afford unpaid positions.

   • Statistics: Over 60% of internships are unpaid, and over half of college students have internship experience, emphasizing a network of privilege.

   • This creates a pathway for advantageous entry into careers, leading to higher lifetime earnings.

Cultural Attitudes Toward Reform

• The perceived meritocracy in the U.S. hinders discussions on class division. The upper middle class may resist changes that seem to redistribute their advantages.

• Classism: Unrecognized discrimination against lower classes persists in various societal sectors, influencing hiring and educational opportunities.

  • Example: Companies favor candidates from similar socioeconomic backgrounds, leading to a perpetuation of class barriers.

Ending the Hoarding

• Addressing opportunity hoarding requires collective sacrifice, specifically from the upper middle class, to level the playing field for lower-income families.

• Intended reform would not only redistribute opportunities but also foster diversity and preparedness among future generations.

• Ethical Implication: Recognizing the need for sacrifice raises questions about individual responsibility towards a more equitable society.

Conclusion

• Reeves calls for reassessment of policies that allow opportunity hoarding; emphasizing a collective move toward reform is crucial in ensuring that the American dream remains alive for all, particularly for future generations of immigrants seeking economic opportunities.