Britannica defines the ‘American Dream’ as the “ideal that the United States is a land of opportunity that allows the possibility of upward mobility, freedom, and equality for people of all classes who work hard and have the will to succeed.” However, is the ‘American Dream’ what it seems to be?
Festival of Dangerous Ideas 2024, The Fading Dream, was presented by John N. Friedman, an economist who researches the causes of inequality and its consequences on the most vulnerable. Joining Friedman, Richard Holden chaired the session, exploring the policies required to revive the ‘American Dream’.
Friedman’s research was done by analysing the social data collected by the federal government over the past decades. Social capital is tracked through the number of connections an individual has through Facebook. Though this has some limitations, it does give a general overview of one’s connections by highlighting the dimensions of social mobility, including birth circumstances, socioeconomic classes, geographical location, family stability and quality of schooling. These factors varied locally as even people from nearby neighbourhoods could have diverse levels of social mobility.
Friedman also notes that economic status does not correlate with growth in social mobility. Even with a booming economy, social mobility will still be low if the growth is not equally distributed. This is why, as Friedman stated, Charlotte is one of America’s fastest-growing cities but still has low social mobility. To conclude, Friedman’s data reveals that the American dream is fading due to the increase in the percentage of children who fail to outearn their parents. This is especially pressing within communities that have low social capital.
The imposing question was: How do we ensure the American dream does not fade?
Firstly, reducing segregation among social classes. This can be accomplished by helping low-income families move to high-opportunity areas by connecting them with realtors. Ensuring that children with low social mobility have more chances to increase their connectivity. However, of course, moving people into a specific location has its limitations. Thus, Friedman alternatively brought up place-based investments. Investments towards improving the overall quality of life and education of low-income areas can significantly increase the upward mobility of the next generation, offering a beacon of hope. An example of this is the Harlem Children’s Zone. This organisation aims to end intergenerational poverty in Central Harlem by providing opportunities to children, such as education and youth programs, to ensure they flourish.
Secondly, Friedman then pushed investments in higher education workforce training. This would allow more people to gain skills in the workforce, leading to more economic benefits. This includes training on workplace norms, how to create a resume, and ways to advocate for themselves. Although it seems small, these training sessions can prepare people to be more ready to enter the workforce. An example brought up was Year Up, an organisation that wants to close the Opportunity Divide by empowering young adults – ensuring they have the skills and experience required.
During the Q&A session, one of the attendees asked about triggering politicians to take action on these issues. Friedman suggested that the most effective ways to propose change to politicians are to be clear about the scientific basis behind each policy suggestion and be humble when bringing up said suggestions. This will give you a greater chance of serving the community’s needs. Although there are other drivers in creating a policy, Friedman counted raising awareness as the most effective way communities can advocate for change.
All in all, it was an amazing experience to see the research analysis behind what is constantly discussed in economic lectures. Friedman highlighted and explained the importance of social capital in ensuring an individual’s social mobility. As a community, it is essential for us to take charge and extend our hands to those who need our help as well as ensuring everyone has equal opportunity to thrive in life.
The Festival of Dangerous Ideas was presented by The Ethics Centre in August 2024. Catch up on talk from over 12 years’ of FODI at the Festival of Dangerous Ideas podcast, https://festivalofdangerousideas.com/.