Jackson Hole Economics

Six ways to bring the American Dream back from the dead

Originally published at The Guardian, August 16, 2019

It is time to admit that the “American Dream” is dead. Its underlying conditions – strong, consistent economic growth and a meritocracy structured to keep the rich from gaming the system – no longer hold true.

Nonetheless, an American Dream 2.0 is still possible, and it will be up to those now contending for the White House to offer a blueprint for making it a reality. For starters, America’s leaders need to explain the problem clearly. The Declaration of Independence proclaimed the “pursuit of happiness” a central feature of American life. Since 1776, each generation has sought upward social mobility; and for a long time, many – though not all – met with prosperity.

For over a century after the American civil war, breakthroughs in energy, medicine, telecommunications, and transportation reshaped America (and the world). Economic productivity grew dramatically, as did the average lifespan. And for most of this period, a rising tide really did lift most boats. Politicians from both parties embraced the national ethos that anyone could get ahead through hard work and gradually, if imperfectly, made it accessible to immigrants, non-whites, women, the disabled, and others who had historically been excluded from the promise of American life. Continue Reading.