Emily DeCoster

Paper #3 - The American Dream: Social Stratification and Poverty

Soc. 230

3-25-04

Is the American dream all that it is cracked up to be? I would say no. The American dream is dying, if not already dead. This dream is the idea that anyone can succeed through hard work and effort. Unfortunately, that is rarely the case, and my generation seems to be suffering because of it. In this paper I will first examine the myth itself, including a discussion of the values needed to support it and what perpetuates it. Then I will discuss the reality of why it is not working for so many. Finally, I will discuss what is needed to make it plausible, if that is even possible.

The American dream is that this country is full of opportunity and that anyone can become wealthy and successful with hard work. This is based on the protestant work ethic brought into this country by its founders. After coming here with practically nothing, they built farms and cities, creating new lives for themselves and their families with their own hands. They then passed this value on to their children and successive generations.

Another key value of the American dream is optimism. The immigrants who built this country came here hoping for a better life. The journey to get here was arduous and dangerous, and not something to be undertaken lightly. Therefore, what they were coming in search of had to be greater than what they left behind. If they did not believe that life in America would be better than their previous lives, then they would not have come.

The same also applies for the early settlers who moved west. They sought better lives for themselves and their families, and they hoped that they could make their fortunes in the great wilderness. Again, it was such a long, risky process that one had to hope for the best, or they would not have done it.

The most important value in the American dream is capitalism. By working hard and taking risks, it is believed that you can better yourself on an individual level. You alone are responsible for your status in life, and if things do not work out, then it is all your fault. By trying to succeed, you leave yourself open to failure; therefore, you are responsible for your outcome and possible success in life.

The idea of the American dream is perpetuated in a couple ways. The media helps a lot to spread the idea, mainly by publicizing the success stories of others. When corporate CEOs or movie stars make it big, they often speak of all the hard work they put into their work. They may also mention the years of work when nothing succeeded, but with young millionaires from the dot.com boom or with young actors, musicians, and athletes, this message is often lost on the young.

Another way that the idea of the American dream is continued is by the plain and simple fact that it gives people hope and a reason for being. It gives a purpose to their lives, and it justifies working so hard at the expense of relationships. People believe that it will all pay off in the end, so they continue on their paths.

Unfortunately, all of this often is not enough to achieve the American dream. Sometimes, no matter how hard someone works and what he or she does, it is not enough. Illness can force people to stop working, financially setting them back years. They may lose their job when the company restructures itself, leaving them underemployed in a job with no benefits that pays half of what they made at their previous job.

Additionally, the gap between the rich and the poor has been widening since 1970 (Pieper, personal communication, 3-2-2004). In 2000, the CEOs of the 365 largest corporations in America made 458 times that of the average worker, compared to a level of 45-to-1 in 1980 (Sklar, Mykyta, and Wefald, 2001). The aggregate wealth of Bill Gates, the richest man in the country, is equal to the wealth of the poorest 40 million households in America (Pieper, personal communication, 3-2-2004).

But why is this? The poor and lower class people today aren't "long-term moochers." The majority only have two children. Most of them work, and the main reason for not doing so is because they are either too young or too old. Living on welfare does not mean that you live well, as the average amount is only 75% of poverty level. Additionally, poverty is not necessarily a generational phenomena, as social mobility - both upwards and downwards - can and does occur. So, why is the American dream a myth for so many people?

The main reason, is that most Americans simply do not have what it takes to get significantly ahead in life. If someone goes to college, the average cost at a big state school is $4694 a year, plus another $5942 for the 2003-2004 school year. Private schools in the same year cost $19,710 per year, plus $7,144 for room and board. At the time of graduation, the average student loan debt for an undergraduate is $18,900 (Koerner, 2004).

In addition to this mounting debt, 75% of students must work an average of 36 hours per week in order to make ends meet while they are at school (Koerner, 2004). This cuts into time they could be spending studying in order to get top grades, or working in an internship to gain experience that would look nice when facing such a competitive job market. They are already losing valuable resources, and they have yet to enter the "real world."

When the average student graduates with such a high level of debt, he or she may want to just find a job, a house, and that special someone while trying to carve out a spot for his- or herself. However, that is increasingly difficult. The average level of credit card debt that college graduates have is $2,327, with 21% ranging from $3000-7000. This affects the interest rates they must pay, leading to more expensive house and car payments (Koerner, 2004).

Often, the only way to make ends meet is to have someone sharing the expenses; namely, a spouse. However, this comes with its own problems and added costs, such as daycare. In two-thirds of American cities, this can be more than $5,750 annually per child, and in the top one-third of these cities, it can increase to over $6,750 (Koerner, 2004). So, a large portion of a family's money goes to childcare. When combined with reports that daycare is bad for children's development, the stress on a family already struggling to make ends meet can be catastrophic.

This leads to the next problem for American families: health care and job security. 17.9 million people between the ages of 18 and 34 do not even have the most basic health insurance (Koerner, 2004). If something were to happen to anyone, the family would not be able to afford it. Most have very little in savings. In fact, in 1998 the bottom 20% of US families had less than $5000 in assets (Friedman, 2000), which would definitely not be able to cover more than a month of expenses if either parent were to be injured or lose his or her job.

The economy plays into this as well. Although jobs are slowly coming back, they tend to be lower paying ones. In fact, "Nationwide, industries that are gaining jobs relative to industries that are losing jobs pay 21 percent less annually" (Koerner, 2004). In the event that people are able to find a new job, chances are great that it will pay less than their previous work and not offer as many benefits. Although this may look good for the unemployment statistics, it can be a devastating blow for a family used to a larger income. This can also be stressful for an employee used to more challenging work, especially if the job is far below his or her capabilities.

The result of this life is frustration with the whole American Dream. Working hard to get ahead, especially going to college, can really set someone back. Although median income is greater for college graduates than for those who stopped after high school - $52,200 compared to $30,400 (Koerner, 2004) - the level of debt is also greater, meaning that trying to better yourself often leads to just trying to keep your head above water. However, everyone still insists that the American dream is possible, leading you to believe that you are the one not working hard enough.

So, what can be done? Welfare only helps the poorest of the poor. Many lower and middle class families struggle to make ends meet, hit by a catch-22: they make too much to receive any aid, but make too little to afford needed services, such as healthcare. Additionally, the current administration seems to care more about tax breaks for the rich and for corporations, leaving the average person to struggle on alone.

Something must be done. The American dream is not possible for so many people. In order to revitalize it, I believe we must accept responsibility for everyone and no longer continue to believe that a person's class or status is his or her own fault. I believe that we need a stronger safety net for Americans, one that will reward people for trying to better themselves rather than punishing them. However, this is a daunting task, but one that I think can be accomplished if enough people believe in it.

References

Friedman, L. (2000). The American Prospect, p. 18-19. In D. Stanley Eitzen and C. S. Leedham (2004), Solutions to social problems: Lessons from other societies (3rd ed). Pearson Education Ltd, Boston, p. 39-41.

Koerner, B. I. (2004). Generation debt : the new economics of being young. The Village Voice, 3-17-2004.

Sklar,H., Mykyta, L., and Wefald, S. (2001). Raise the Floor. Cited in D. Stanley Eitzen and C. S. Leedham (2004), Solutions to social problems: Lessons from other societies (3rd ed). Pearson Education Ltd, Boston, p. 37-38.