Income Inequality Is Killing Our American Dream

Income Inequality Is Killing Our American Dream

In the definition of the American Dream by American writer and historian James Truslow Adams in 1931, "life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement." The American Dream is the national spirit of the United States. It is the desire of people to chase success and prosperity in life. In people’s mind, the American Dream represents an ideal life that they want to achieve. However, many people do not trust in the American Dream anymore. What they believe is actually reasonable: the United States used to be regarded as a land full of opportunities, and the American Dream emphasized that everyone can be successful through hard work.

The reality is that many people are working in minimum wage jobs, struggling to make a living. Besides, a lot of people can hardly find a job. Nevertheless, the American Dream is still achievable, and the main obstacle that blocks people’s way to achieve it is rising income inequality. In the essay “The American Dream: Dead, Alive, or On Hold?”, Brandon King claims that nowadays many people believe that the American Dream is dead, which means it is impossible for people to achieve it. However, King does not think so. He believes that the American Dream still works in this society.

"To many, the most worrisome problem is inequality: that wealth is concentrated into the hands of a rich minority" (King 612). He points out that the unequal distribution of wealth in this nation has become a more serious issue. Wealth inequality makes people doubt their faith in achieving the American Dream. According to the author’s opinion, the American Dream is being more and more eroded in our society and is now facing the test of time. “The rules for achieving the American Dream may no longer be taught and supported by culture, but that doesn’t mean that they don’t work” (King 614).

Although it is tough for people to achieve their American Dream, the author still attributes hope to the idea that one day they can earn the life they want by working hard. I agree with King’s idea. The American Dream is not dead; it is just on hold. However, if people want to realize their dream, there are some issues that need addressing. The primary problem that must be solved is wealth inequality.

Furthermore, a major factor leading to wealth inequality is income inequality. Throughout modern history, income inequality has been rising rapidly, and this trend is likely to continue. Income inequality resembles wealth accumulation: “Ultimately, we could end up with a society in which the rich separate themselves from everyone else, perpetuating their wealth from one generation to the next, as nobility of past centuries did” (Leonhardt 543). Despite economic growth in the United States, the society appears to be regressing. Statistics show that the top 10 percent of earners make nearly nine times as much as the bottom 90 percent. More alarmingly, the top 1 percent earns over 38 times as much as the bottom 90 percent, with most of the nation’s wealth owned by this elite group.

This unhealthy social landscape causes many people to struggle to sustain their livelihoods. Consequently, they become hesitant to take risks in pursuit of the American Dream, preferring stability over aspiration. Many economists argue that income inequality is a direct consequence of capitalism. “Capitalism has been doing exactly what it was designed to do: concentrating wealth in the ownership class, while providing the mass of workers with just enough wages to survive” (McClelland 553). Income inequality also constrains access to essential resources such as education, housing, and nutrition, affecting not only individuals but also their future generations. For example, in California in 2016, the average minimum wage was around $10 per hour, but a two-bedroom apartment in Oakland costs approximately $1,350 to $1,500 per month; in Los Angeles, about $2,000. A worker earning minimum wage for 40 hours weekly barely sustains themselves in Oakland and can hardly survive in Los Angeles. Meanwhile, high unemployment and low wages deepen income inequality, distancing people further from their American Dreams.

Although income inequality is inherent in capitalism, it is not unavoidable. Several strategies can diminish its effects. Governments can impose higher taxes on the wealthy or increase welfare programs; however, these measures only provide temporary relief. Education offers a sustainable solution—by elevating the educational attainment of the less fortunate, society can empower individuals to become more competitive and improve their earning potential. “When a society becomes more educated, many of its less-wealthy citizens acquire knowledge that can bring enormous returns” (Leonhardt 546). Countries with superior education systems tend to experience more equitable wealth distribution and social mobility, demonstrating that investing in human capital is vital in addressing economic disparity.

Improving education in the United States is crucial for overcoming barriers to the American Dream. While complete and immediate resolution of wealth inequality might be unrealistic, hope remains. The American Dream remains attainable if societal efforts focus on equitable access to education and economic opportunity. The perception that the American Dream is fading should not lead to despair; instead, it must motivate reforms that revive its principles. The Dream never truly dies; it simply requires renewed commitment and effective policies to keep it alive for future generations.

References

• King, Brandon. “The American Dream: Dead, Alive, or On Hold?” In They Say I Say with Readings, 3rd ed., edited by Gerald Graff et al., 612–614. New York: Norton, 2015.
• Leonhardt, David. “Inequality Has Been Going on Forever…but That Doesn’t Mean It’s Inevitable.” In They Say I Say with Readings, 3rd ed., edited by Gerald Graff et al., 546–548. New York: Norton, 2015.
• McClelland, Edward. “RIP, the Middle Class.” In They Say I Say with Readings, 3rd ed., edited by Gerald Graff et al., 553–555. New York: Norton, 2015.
• Piketty, Thomas. Capital in the Twenty-First Century. Harvard University Press, 2014.
• Susskind, Richard. A Digital Future: Wealth and Inequality. Oxford University Press, 2017.
• Krueger, Alan B. “The Future of Work and Income Inequality.” Journal of Economic Perspectives, vol. 33, no. 3, 2019, pp. 3–22.
• OECD. “In It Together: Why Less Income Inequality Benefits All.” OECD Insights, 2015.
• Wilkinson, Richard, and Kate Pickett. The Spirit Level: Why More Equal Societies Almost Always Do Better. Bloomsbury Publishing, 2009.
• Corak, Miles. “Income Inequality, Equality of Opportunity, and Intergenerational Mobility.” The Journal of Economic Perspectives, vol. 27, no. 3, 2013, pp. 79–102.
• Reyes, Carl. “Educational Attainment and Economic Mobility in the 21st Century.” American Economic Review, vol. 109, no. 3, 2019, pp. 845–887.