America: Home of the American Dream or the American Nightmare?
America: land of the free and home of the brave. A place where people of any color, creed, or background can make it big. A place where, if you pull yourself up by your bootstraps and work hard enough, you can become the next Jeff Bezos or Mark Zuckerberg. A place where economic stability isn’t just a possibility but a promise—or so it is advertised.
The term "The American Dream" was first introduced by American historian and writer James Truslow Adams in 1931. He describes it as a social order in which hard work is rewarded by upward mobility, regardless of one’s race, gender, or socioeconomic class. The American Dream serves as a positive emblem for Americans from coast to coast, reminding them that hard work pays off. However, time and time again it has been proven that the American dream is more like an American nightmare. The idea of the American dream has become increasingly unachievable over the years, thus instilling a culture of false hope in individuals who may never see the “American dream” within capitalist America.
The American Dream is becoming increasingly unachievable for many reasons. For one, homeownership has been on the decline since the recession of 2007-2009. Studies show that rent has increased more than doubled in the past 20 years, yet household incomes are unable to keep up. Owning a home is not only an economic asset but also a symbol of stability, family, and comfort—a shining example of the American Dream that is being overshadowed by poverty and hardship. Additionally, economic inequality is more pronounced than ever. According to a study conducted by the Congressional Budget Office, America’s richest 1% of households made, on average, 139x more than America’s bottom 20%. Compared to other “developed” countries, America has one of the most unequal wealth distributions, despite being the supposed home of economic prosperity and freedom. Lastly, the ability to save money and have faith in America’s banking institutions has fallen. According to the F.D.I.C., one in 19 U.S. households do not have a bank account. Every year, banks accumulate billions in profit from overdraft fees, check-cashing fees, and payday loan fees from individuals who are too busy just trying to survive to pay exorbitantly high interest rates. Landlords, billionaires, banks, and politicians are selling the American Dream and remain the only ones profiting from it. Overall, the American Dream is slipping through our fingers, and there is data to prove it. However, it’s still deeply embedded in American culture in a very dangerous way.
The American Dream perpetuates a sense of false hope in Americans by promoting unrealistic positive psychology. According to a study conducted by sociologist Dana Becker, positive psychology “preaches the dogmas of positive thinking and self-improvement through individual effort.” In other words, Americans are taught that “anything is possible” and that they are solely responsible for achieving the American Dream through hard work and determination. This sentiment may sound inspiring, but instead, it gives Americans a false sense of agency. The harsh truth is that in America, hard work often doesn’t pay off. Many people work two to three jobs just to feed their families yet don’t experience upward mobility due to systemic obstacles in place.
Despite the glaring evidence that institutions are to blame for America’s persisting poverty problem, studies prove that people from all backgrounds perceive poverty to be caused by internal factors like laziness rather than external factors like exploitive institutions. This sentiment is even held by people in impoverished conditions. For example, an in-depth interview of 60 people living in poverty shows that impoverished individuals sometimes morally condemn the poor, such as one interviewee who stated, “A lot of people around here are living in poverty, but I think a lot of it's their own doing.” Though this study was conducted in Britain, the sentiment extends to impoverished Americans as well. For example, in her memoir Heartland, Sarah Smarsh notes that in her impoverished Kansas community, her friends and family hated the idea of receiving welfare and chose to just work harder instead of receiving the help they so desperately needed. Overall, it is clear that many people of all socioeconomic backgrounds blame poverty on the individual—even the impoverished themselves.
The American Dream isn’t inherently controversial. It’s the promise of upward mobility in a society that makes upward mobility nearly impossible that renders the American Dream problematic. Though pride and reluctance to accept help is just a part of being human, it is also deeply American. The American Dream tells people that hard work pays off regardless of who you are or where you come from. It is not a hopeful, attainable goal, but a lie that keeps people in poverty while simultaneously blaming them for it. So, what should be done about it? I propose two solutions that could be employed to alleviate this pressing conflict.
Instead of telling Americans that their economic fate is in their hands, we need to demand that the U.S. government hold predatory institutions accountable for preying upon impoverished communities. For one, there needs to be more affordable housing. Some ways we can achieve this are by building more houses in places that need it, dismantling local zoning that doesn’t match community needs, and making it easier to become a homeowner, like lowering interest rates on mortgage loans.
Secondly, there needs to be fewer punishments in place for those who aren’t able to pay the bills on time. Whether it be lowering interest rates or making it easier to build credit, people living in poverty should not have to battle with institutions that intend to keep them in poverty. Lastly, people need to make a conscious effort to destigmatize poverty and place the blame on the system rather than individuals. Instead of asking, “What did that person do to get to this point?” we should be asking, “What external factors caused this, and what can I do to help?”
The American Dream may be dying, but it doesn’t have to be dead. Currently, the American Dream is unattainable due to exploitative institutions such as the housing market and banks. This, coupled with the false perception that impoverished individuals are to blame for their own poverty, creates an ugly cycle that prevents Americans from confronting the real cause of poverty: the systems that profit from it. However, all hope is not lost. America can still be the home of liberty and justice for all if we stop blaming internal factors for poverty. We must demand change from profit-hungry American institutions. We must wake up from the American nightmare before we can truly live the American dream.