Challenges to achieving the new American Dream
Americans most often say that they treasure personal experiences and satisfactory quality of life more than material possessions, but they still desire a standard of living that includes a house or car. Unfortunately, those assets come at a cost too burdensome for many Americans. Winter Torres, a lawyer in Colorado, is one of many Americans still working towards their home-ownership goal. “I would love to own my own home, but I’ve been caring for my parents and limited by student loan debt. I don’t think this is achievable right now.”
Indeed, nearly eight in ten of survey respondents agree that the cost of living today makes it harder to see how one can achieve the American Dream. Likewise, “being able to retire comfortably” is the least achievable aspiration in the eyes of Americans overall, with fewer than half (42%) believing it possible. Those in the lowest income bracket see retirement as even less achievable (32%), reinforcing the idea that financial stability is still critical to achieving certain goals. In fact, those earning $75,000 or more annually are far more optimistic about fulfilling their aspirations and are satisfied with their achievement of the American Dream than those in lower-income brackets. Similarly, while most Americans across generations and ethnicities feel they are personally more capable of achieving their goals than their peers (see exhibit), the financial haves are more inclined to feel this than the have-nots (56% versus 30%).
And still, what was once seen as essential to financial success is now seen as less certain. A majority (seven in ten) of respondents believe that “college is no longer a guarantee to living the American Dream”, while the same number believe that “the recession of 2008 changed people’s expectations of the American Dream”.
“College is absolutely becoming less realistic, less affordable,” Winter noted. “Community colleges are stepping up to help fill that hole, but they are not a long-term substitute for elite educations. They exacerbate the divide between the haves and have-nots.” Those in the middle-income brackets more often agreed that the recession affected the American dream (74%) than those in either the lowest (63%) or highest (70%) brackets—an indication of how hard the middle class was hit by the recession. Respondents of all races and income levels now doubt the connection between college and success.
Various social tensions may also continue to affect people’s perception of the American Dream—and their ability to achieve it. For example, White Americans more often report living the dream in a significant way today compared with other groups (29% versus 18% of African Americans), with Asian Americans more often saying they are confident in their ability to reach their dreams (48% versus 42% of Hispanics). Likewise, men are more likely than women to believe that they will be able to reach their dreams (46% versus 41%), perhaps a result of women’s ongoing struggles for workplace wage and promotion parity.
Despite these many challenges, 65% of Americans maintain a belief that “people can come from any walk of life and make it in America”—a core tenet of the original American Dream and a testament to the American spirit. Although Americans believe income affects their ability to achieve the Dream, and that the Great Recession made it even harder, 62% say they will be able to do better than the generation that came before them and 73% believe they will be able to live a good life. “I describe myself as hopeful and seeking,” said Winter. “I am happy with who I am now and with my job, but I believe I will keep growing and achieving.”