A recent ABC poll (2024) shows that Americans are starting to lose faith in achieving the ultimate goal: the “American Dream.”
Only about 27% of pollers believed it was still a realistic and achievable goal. The most pessimistic group was the youngest generation (ages 18 to 29), with the number of people believing in the American dream dropping from 51% in 2010 to 21% in 2021. Ultimately, people are losing hope.
These numbers show that the idea of wealth, owning a home, and being successful in the world with enough seems like a far-fetched dream for many people. So, why is the American dream dead for some people? Here are 16 potential reasons.
1. Wealth Inequality
The wealth gap in America has hit historic highs. Now, the top 1% own more than the bottom 90%. With this type of wealth disparity, it’s getting more challenging for most people to grow wealth and boost their financial situation.
Being stuck in survival mode, racking up debt, and living paycheck to paycheck makes it feel impossible for those in poverty to see a way out to a brighter future.
2. Slow Wage Growth
One critical aspect of the American Dream is giving your family a better life. But sadly, wages have stayed the same for years, not keeping up with the rising prices of even the essentials. As inflation for goods and services soar, how can anyone keep up with the same purchasing power? They can’t.
Research suggests that when you account for inflation, the average hourly wage in America hasn’t gone up since the ’70s.
3. Cost Of Education
A college degree was once considered a golden ticket to a bright future. Today, it means a lifetime of debt without assurance of a well-paying job. Student debt is at an all-time high, soaring 66% in the last 10 years to 1.7 trillion dollars.
The burden of a large student loan can be the biggest hurdle to achieving money and life goals. It can make it feel impossible to start a business or buy a home.
4. Job Insecurity
Job security? It’s more of a thing of previous generations. With the rise of the gig economy (which was supposed to bring flexibility), the job market turned into unpredictable work, up-and-down income, and no safety nets. This situation casts a dark shadow on the American dream, challenging individuals’ financial stability.
Moreover, AI technology continues to replace several workers (writers, designers, receptionists, etc.), increasing unemployment and job uncertainty.
5. Escalating House Prices
The dream of homeownership, once within reach for many, now feels like a dream that can never come true. Home prices have skyrocketed to unattainable levels for many young Americans. In the 1960s, the median home price was equal to two years of the median household income. By 2017, that figure had more than doubled, and it continues to escalate in 2024.
6. Retirement Uncertainty
The idea of retiring comfortably is not a thing anymore for many folks. Pensions are rare now, and social security might not be enough. Everyone must save for retirement, which can be challenging when everyday expenses take up most of your paycheck.
7. Climate Change
According to a report, we’re heading towards a 1.5°C temperature rise globally in the next couple of decades. It could worsen natural disasters, mess up food and water supplies, and cause significant problems for nature and the economy.
Not doing anything about it adds more uncertainty to the future, making it even harder for people to achieve the American Dream. People will turn their concerns from a white picket fence to simply having a safe space and a roof over their heads.
8. Cost of Living
Daily living in America is getting expensive; from groceries to fuel, everything is affected by inflation. With this alarming rise in expenses, the middle and lower classes are the hardest affected, compelling them to work extra hours to make ends meet, putting a full stop to the American dream.
9. Political Polarization
The nation is divided between Republicans and Democrats. Everyone’s picking a side; when watching the news, it can feel like there is no room for people who want to find common ground and address issues affecting the American Dream.
When we have different views and beliefs or see each other as the enemy, working together toward creating a fairer nation for everyone can be challenging.
10. Declining Social Mobility
Contrary to the American Dream’s basis, social mobility (moving from lower to middle class or middle to upper class) has declined in recent years. Data reveals that those born in 1980 have only a 45% chance of earning more than their parents at age 30. This figure was 93% for those born in the 1940s.
11. Healthcare Crisis
Gone are the days when a regular insurance premium meant peace of mind. Now, Americans can’t even afford to get ill (or they might lose it all). And it’s not just the uninsured who worry about medical bills anymore. Even those with coverage experience delays in critical care or discover certain services aren’t covered, which affects their quality of life and bottom line.
12. Excessive Childcare Costs
Childcare expenses are hard to manage for working parents. The financial strain sometimes feels like a second mortgage. This can force tough choices like taking career breaks or delaying childcare setups, which unfortunately contributes to the gender pay gap.
13. Travel Costs
Going on vacations used to be something many Americans could enjoy, but now it’s not possible. Travel costs have increased significantly because of fuel, places to stay, and the overall cost of living. And those extra airline fees for bags and picking your seat only add to the bill. This mix of higher expenses and low income makes those dream vacations harder for many people to reach.
14. Wealth Gap Based on Race
The wealth gap between races in the United States is a bitter reality. For people of color, this racial disparity can make reaching goals like owning a home, saving for the future, or getting a good education much more complicated compared to white people. It clearly reminds many that the American Dream is already dead.
15. Vanishing Middle Class
Once considered the backbone of American society, the middle class is now experiencing a significant decline. The middle class struggles to keep up with the changing economy, facing fewer opportunities and more vulnerability to financial shocks. Unfortunately, many have experienced downward mobility and are now closer to the lower class.
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Aqsa is a passionate writer who loves spending her free time jotting down her thoughts. But that’s not all. She is a devoted mom to two boys and a skilled pharmacist specializing in hematology. When she’s not running after her energetic kids, you can find her lost in a good book or writing beautiful words. A nature lover at heart, she enjoys exploring the outdoors, staying active, and always seeking ways to learn new things.
