The American Dream Problems - Essay Example

The American Dream Problems Introduction The United s is known to be among the world’s oldest and power nations. Ithas been existence for over 200 years and has seen many generations come and go. Unfortunately, the US is faced by numerous problems that have been assumed for so long. The nation is faced by pressing issues such as the widening gap between the rich and the poor and the rising cost of living. Generally, the US economy has been heading to recession over the past two decades. The dream of this nation of being a better nation in future is slowly becoming as good as dead. Everything seems to be rippled, and only a few look concerned about the American problems, as everybody assumes that things are headed in the right direction. The scope of this essay is therefore based on the common problems that are likely to end the American dream, of which income inequality is the biggest problem of all the American problems. The American income inequality Many people have been of the opinion that racism is the biggest problem facing America. The bold prediction has been that the rising income inequality will be the most crucial political battleground for the next few decades (Cal et al). Surprisingly, most of the American problems have resulted from income inequality and this problem has been there for so long. Economists have assumed the income inequality problem for so long despite its consequences. The gap between the rich and the poor has been increasing on a daily basis. The rich are spending more simply because they have more cash to spend. Their spending has been shifting the frame of reference that shapes the life of those who are in lower economic class, travelling in overlapping social circles. The middle class also spends more, shifting the reference frame for the group just below it, and the income ladder continues this way up to those living below the poverty line. Such cascades have made it more expensive for middle income earners to achieve basic financial goals. Taking a look at figures such as the income that accrue to the top 1% increased from 9% in 1977 to 20% in 2012. The richest 0.1% used to control 7% of wealth in 1980 and 22% of the wealth in 2013. Meanwhile, many people have been of the opinion that the only way of reducing this income inequality would be through increasing taxes on income and wealth. Unfortunately, the rich will not allow this to happen. Income inequality has caused a snowballing effect on the distribution of income, as there is a high rate of saving top incomes. As a result, wealth has been concentrating at the top. The rising income inequality has been resulting into a rise in capital income concentration, contributing to a further increase in top income and wealth shares (Cal et al). The three decades that came after the World War II saw the US incomes rise rapidly at a rate of almost 3 percent per year for people at all income levels. The middle class was so vibrant and income was not concentrated much to the few. By contrast, the last three decades has seen the American economy grow at a very slow rate and everything seems to fall in grave disrepair. The most troubling fact has been that income is increasingly becoming concentrated at the top of the scale. According to Frank, “the share of total income going to the top 1 percent of earners, which stood at 8.9 percent in 1976, rose to 23.5 percent by 2007, but during the same period, the average inflation-adjusted hourly wage declined by more than 7 percent.” Why income inequality needs attention Income inequality has been termed as the defining challenge of today’s generation. However, claims about the harm caused by the rising income inequality are rarely substantiated. Comprehensive evidence of the consequences of inequality tends to offer little cause for alarm. American income inequalities are rhetorically linked to the stagnant incomes among the poor and middle income earners. It is equally linked to slow economic growth rate and diminished opportunity among those in the lower income ladder, macroeconomic financial instability, household indebtedness, and political instability. However, the state of knowledge about these linked suggest little reason of prioritizing income inequality as a national issue (Cal et al). Considering the relationship between income inequality and the standards of living of the rich and the poor, income inequality should be considered as an issue in all nations all over the world. It is believed that incomes below the top have become stagnant as the middle class and the rich have pulled away, taking a big portion of income growth. However, the truth is that there is no any form of inconsistency between those at the top getting a big share of income gains and the middle class and the poor seeing significant growth of income. As noted, income inequality is a big monster to the growth of any economy and needs a lasting solution. This problem can only be solved through increasing tax on those with high incomes. By increasing tax on high incomes, there will be a fair distribution of income to other income classes. American dream as good as dead When asked about the American dream, most Americans still have an idea on how they need to define the American dream. However, the problem has always been that most of them still do not think that there is obstacle of making this dream come true. It is so unfortunate that most Americans are thinking of what is next to impossible, as America’s dream is as good as dead. For most of the generations that have past, parents have been telling their children about the American dream. This dream has basically meant building a life that is based on foundational principles that have sustained America for the past 200 years. By parents telling their children about the American, they have been of high hopes that the next generation will achieve better than what they have experienced. What defines a better life has remained to be a big question for many years. Today’s generation has defined a better life with respect to achieving better prosperity and consumption of more material things, which is not the case. Citizens electing leaders who form a government that is totally out of control and out of touch is robbing themselves. In so doing, they have prevented the fulfillment of the original American dream, making it hard to make this dream come true. Thinking that a dysfunctional government will help their nation achieve its dream is like citizens placing their hopes in the wrong place. Believing that a politician of a given political party or persuasion can help Americans achieve their dreams has been the most misleading fact for centuries. The American dream can only be achieved under a personal initiative of its citizens. Those who think that the American dream can be achieved through their politicians are more than dreaming, they expressing a cult of faith, which is unachievable at all costs. The rules of achieving the American dream are no longer taught or supported by culture. However, that does not really mean that these rules no longer work. Rules that were known to previous generations include studying hard while in school and achieving at least an undergraduate degree, not being involved in any kind of drug abuse, and working hard when one gets a job. Despite all this, America will never get its act together unless it makes an effort of recognizing how much trouble its citizens are in (Cal et al). As a nation, America needs to know where it has come from and what it needs to do to head in the right direction. America’s dream is an empty promise It has been the opinion of many people that it is a high time America needs to retire it dream or at least give it a longer vacation. There is need of dropping the dream from its national conversations. The dream has become a hardship for pundits and politicians who use it as rhetorical workhorse for embodying goals that have been embraced by almost all Americans. That has been the problem. The meaning of this dream has become so expansive that it has stifled honest debates and harmed the same citizens it is supposed to help (Cal et al). From the look of things, no one can oppose the American dream. It has captured the faith of its citizens in opportunity, progress and striving. It has gone ahead to reflect the hopes of a stable of large middle class. Everyone is striving to go to college and have a better life, and children are supposed to live better lives than their parents’. Practically, there is nothing wrong with having some little hope or top optimism. It is inevitable and even healthier in case it makes people feel good and even inspired to a rewarding behavior. The biggest problem with the infatuation of the American dream is that it tends to transcend common-sense boundaries. The dream has become substitute for dealing with real problems. Hiding from reality With many problems that are affecting America, everybody has been thinking that everything is in the right position. Since the end of the Great Recession, the US has had an increase in the number of foreign workers, with the number hitting 656,000 job occupied by foreign workers. For local workers, the number reduced by 1.2 million. However, as the number of foreign of foreign workers increased, there was a sharp increase in their earnings (Cal et al). Work cited Thomas, Cal et al. Is the American Dream Over? Class Readings Read More