Six Sobering Truths About The American Dream

In the U.S., we love stories about the American Dream because we value the belief that each of us can rise up in life, no matter the circumstances of our birth. But a recent Brookings Essay by Richard Reeves provides strong evidence that the American Dream is under serious threat. Learn some sobering truths about wealth and opportunity in modern America by looking at the facts behind some of our favorite fictions.

1. Real incomes for the top 1% of households have tripled since 1979.

Via superiorpics.com

While Christian Bale’s Bruce Wayne (~2008) would make much more than Michael Keaton’s (~1989), Alfred wouldn’t see his income rise nearly as much. Those in the middle of the income distribution have seen their income increase by only 36% since 1979.

2. Workers are getting less and less of national income.

Via wifflegif.com

The share of national income flowing to workers dropped from 63% in 2000 to 57% in 2013. In historical terms, that drop is equivalent to around $750 billion in “lost” wages.

3. The top 1% takes twice as large a share of national wealth as national income.

Via d2buyft38glmwk.cloudfront.net

The Crawleys may have once worked hard to earn their money, but it’s that famous Abbey that makes them so much wealthier than everyone else. And yes—we know they’re not American. But the author of our essay is a Brit, and the Dowager always deserves a shout out.

4. Children born on the bottom rung have at most a 10% chance of making it to the top.

Via sfcitizen.com

Kids like Charlie Bucket will need that Golden Ticket to succeed. They have a 40% chance of being stuck in the bottom economic quintile (the bottom 5th of the income distribution), and a very slim chance—between 4 and 10%—of making it to the top.

5. Worse, a child raised by a poor, unmarried mother has just a 5% chance of making it to the top.

Via gracemagazine.wordpress.com

Rory Gilmore's lucky to have wealthy grandparents. Without them, her chances of making it to Yale and beyond would be depressingly slim.

6. Half of the black children growing up on the bottom rung remain stuck there as adults.

Via afronetizen.blogs.com

The mobility picture is even worse for black Americans. Precious ends on a note of hope, but in real life the drama’s leading lady would have a 51% chance of being stuck at the very bottom. For white children born into the bottom rung, their chances of being stuck there are 23%.