In an article in US News called “The upward mobility ‘American Dream’ has been broken. Look at the numbers” by Bella Cangelosi, a key myth continues to fall.
“The United States has long been proud to be a very fluid society in terms of social class and economic liquidity. The American Dream believes that anyone who works hard can be financially successful.
Underlying this belief is the premise of abundant opportunities and meritocracy. Immigrants who arrive often believe that they have come to a land of opportunity, in a place of equal competition that enables them to progress and succeed. Otherwise, you tend to blame yourself.
However, recent research shows that the United States today has far less liquidity and equal opportunity than the European Union and other OECD* countries.
First, the amount of economic advantage passed from one generation to the next is (higher in the US). About 50% of the father’s income is inherited by his son. In contrast, the amount in Norway or Canada is less than 20%.
How about the rise from rags to wealth? In the United States, 8% of children raised in the bottom 20% of the income distribution can rise to the top 20% as adults. Denmark At 15%, it almost doubles
In the United States, equal opportunity is far less feasible than in other OECD countries. Life expectancy in America (trails others and is impacted by postal code). The quality of education also depends greatly on the wealth of the neighborhood in which the family lives. Also, the potential for crime victims, exposure to environmental toxins, and unmet medical needs is far greater for the poor in the United States than for all other poor people. OECD countries.
One of the reasons for the reduced mobility in the United States is that the ladder steps have grown further away, making it much more difficult to climb the ladder of opportunity. This is evidenced by rising levels of income and wealth inequality. Currently, people in the top 20% of the income distribution earn almost nine times as much as those in the bottom 20%. This difference is much greater than in the European Union and the United Kingdom. Wealth inequality is further distorted. In America, the top 5% of the population owns three-quarters of the country’s total financial assets, while the bottom 60% owns less than 1%.
Our book provides one explanation for these trends. Not well understood: America is wrong about poverty.. The United States has traditionally seen economic successes and failures as a result of individual efforts. Rough individualism and independence have defined the qualities of an American character. On the other hand, our European neighbors are much more likely to attribute poverty to structural factors such as social class and lack of work. As a result, other OECD countries are much more eager to invest in a robust social welfare state designed to help remedy some of these structural inequality.“
The rest of the article can be accessed below. This is not a new phenomenon, only an underreported one. This is not a racial problem, it is an American one. We have been on the decline now for some time, we just get caught up in talking about the wrong issues and not the ones that should matter.
When US citizens look at an economic distribution charts of wealth or income, they wrong chart is thought to be the US more often than not. The one that shows higher numbers at the lower strata is the US as contrasted to other countries’ distributions. We are the country behind the others. Until we recognize this fact, we truly cannot address our problems.
*OECD = Organisation for Economic Cooperation and Development