The “American dream” has long been a cornerstone of our national identity—the idea that any citizen of the United States, regardless of upbringing or background, can work his or her way to prosperity. It is why nearly 1 in 5 businesses in the country are owned by first-generation Americans. It is borne out in the sharp increase over the past 20 years in college students from economically distressed households. It is also reflected in the “income advancements” we have seen among American families over the past 30 years.
Despite the upward mobility experienced by millions, the American people are losing hope. In newly released polling data published by our organization, the Joseph Rainey Center for Public Policy, 66% of Americans polled believe the concept of the American dream has become “less attainable” over the last 10 years. Only 9% of Americans think the dream has become more attainable.
About 40% of American voters say the American dream is out of reach for them, with young people most likely to agree. It is also a pessimistic sentiment more pronounced for black Americans, who were the least likely to say they have achieved it.
Overall, only 1 in 5 of voters believe they have reached the American dream.
While it is disappointing to see Americans lose hope, it is also an expected outcome after the surging inflation of the past several years. Prices of goods are up an average of 20% since President Joe Biden took office. An analysis published by the U.S. Senate Joint Economic Committee late last year estimated that, due to inflation, the average household would need to spend an additional $11,434 annually just to maintain their same standard of living they had prior to January 2021.
The situation has become so dire for some that it was recently reported that more Americans are being forced to choose between paying for food and paying their energy bills. One mother admitted to CBS News, “Sometimes I have to choose whether I’m going to pay the light bill, or do I pay all the rent or buy food or not let my son do a sport?” This is the crushing reality for far too many families as they have tried to stay afloat while coping with the 40-year-high inflation that has gripped prices nationwide.
Homeownership—long considered a staple of the American dream—has also become more difficult for families to achieve. Soaring interest rates, needed to curb runaway inflation, have increased mortgage rates, creating an affordability crisis. A CNN poll found that the overwhelming majority of Americans currently renting “would like to buy a home but can’t afford one.” More than 50% of those asked feel they’ll never be able to own their own home.
It is estimated that due to the rising mortgage interest rates and property costs, “home buyers now need to earn $47,000 more than they did in 2020”—an increase of 80%—to be able to comfortably buy a home, according to a report by Zillow. This is demoralizing for those simply trying to purchase a family home.
All these factors are making Americans less optimistic about their future and their children’s future. Our polling found that more than 50% of Americans believe the United States will be worse off down the road. This national pessimism is toxic for the future of America. If we are going to course correct and deliver a tomorrow that inspires today’s workforce, we need smart policies that will help families climb out of the financial hardships they have had to face over the past several years.
To restore faith in the American dream, we must re-imagine it for today’s world. At the Rainey Center, we have focused our commitment on advancing innovative and actionable solutions that demonstrate a capacity to address some of the nation’s most complex challenges, from advocating for economic empowerment to boosting domestic energy production.
One of the crucial policies we have advocated for is permitting reform, which includes commonsense measures that will lower energy costs for families, lead to more infrastructure development, and reduce bureaucratic red tape. It is also a policy that has broad bipartisan support from the American people—and voters want to see reform, so it is easier to build infrastructure in America. The next administration should immediately move to deregulate energy production and invest in energy innovation to reverse the current economic trend.
The path forward requires policies that both preserve the integrity of the American dream and make it accessible once again. By encouraging fresh ideas, institutions like the Rainey Center—in their collaboration with policymakers at every level of government—can lay the foundation for a new era of opportunity—one where all Americans, regardless of background, can share in the promise of prosperity. Only by embracing bold, inclusive solutions can we ensure the dream remains a tangible goal for future generations.
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