The ‘American Dream’ Is a Myth: Joseph Stiglitz on ‘The Price of Inequality’

The ‘American Dream’ Is a Myth: Joseph Stiglitz on ‘The Price of Inequality’

Income inequality has become the subject of much debate in this country, in large part because of the Occupy Wall Street movement.

In his latest book, The Price of Inequality, Columbia Professor and Nobel laureate Joseph Stiglitz examines the causes of income inequality and offers some remedies. In between, he reaches some startling conclusions, including that America is "no longer the land of opportunity" and "the 'American dream' is a myth."


While we all know stories of people who've moved up the social stratosphere, Stiglitz says the statistics tell a very different story. In the last 30 years the share of national income held by the top 1% of Americans has doubled; for to the top 0.1%, their share has tripled, he reports. Meanwhile, median incomes for American workers have stagnated.

Even more than income inequality, "America has the least equality of opportunity of any of the advanced industrial economies," Stiglitz says. In short, the status you're born into — whether rich or poor — is more likely to be the status of your adult life in America vs. any other advanced economy, including 'Old Europe'.

For example, just 8% of students at America's elite universities come from households in the bottom 50% of income, Stiglitz says, even as those universities are "needs blind" — meaning admission isn't predicated on your ability to pay.

"There's not much mobility up and down," he says. "The chances of someone from the top [income bracket] who doesn't do very well in school are better than someone from the bottom who does well in school."

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This article is basically explaining the American Dream is a myth due to too many gaps on income inequality.Also it mentions you will be more likey to be as poor as your parents. I wonder who really betrayed the American Dream?

finance.yahoo.com...

It is totally misleading about what your status in your childhood is would most likely be where you were as an adult, the numbers say otherwise because 50% of us are in fact poorer than our parents were. I am one of those. When the hell did our parents ever have to move back in with their parents at 30 yrs old?

reply to post by ldyserenity


Sadly when shtf I'm sure we'll see everybody not just your parents without money

I suppose this could be true, but I don't think the cause and effect is the same.

With effort, I have first hand experience, you can have an American dream.

My father was dirt poor growing up and worked his way into Upper middle class.

2 of his children make 6 figures, one of them being a VP at a bank and MIT Grad, and the youngest is well on his way.

And to top it all off I'm Hispanic...

If I can do it, anyone can, with effort and discipline.

Thats whats lacking now days, Effort and Discipline, dont buy the cell phone or big screen, save your money for what matters.

Pathetic.

All of you complainers -- get off the forums and go look for a job. I am so tired of you and your OWS friends complaining about the rich.

If you "aspired" to do something with your lives, and get the teat out of your mouths, you may find yourself able to achieve what your parents never did.

But, no, you would rather sit back and complain, pointing the fingers and blaming those who have got off their ass*s and accredited something instead of crying "oh, poor me..."

I achieved what I set out to do in my life. At 19, I vowed to be a self made millionaire by age 30. I achieved that goal, and more. My father was a blue collar, working man. A union man. He did well to raise me -- on sweat and diversity. I took the football and ran with it. And because I live in the USA -- the land of the free where YOU CAN ACHIEVE, I scored the touchdown!

I then cared for my family, my parents, and gave them jobs and made sure they were well kept.

That is what America is about.

So quit your wining and get off your ass*s and do something with your lives!

reply to post by phantomjack


well say that to those who did try to find a job but failed to. Many of of these people are very hard working yet they couldn't find a job. It's not about tabut how lazy we are it's what's the situation. Believe me wwhen the dollar collpased I'm sure your gonna change your mind and have you even experienced what's it's like to be poor

Originally posted by starwarsisreal
reply to post by ldyserenity

 

Sadly when shtf I'm sure we'll see everybody not just your parents without money

I meant us with less money than our parents, the parental units, they still have their equity and money, because they done paid off their crap before the 2008 foreclosuregate. I am talking most people today have less than their parents did thirty years ago, graduates moving back home even thrity somethings moving back home. Thankfully I have not had to, but still my parents are wealthy compared to me. Even with the degree I'm acquiring right now, I still don't see me moving even back up to their status, and as for my kids, they'll probably be moving back in at some point. One is out of the home this summer he moved out, one is graduating 2013 and going to community college then University, she will probably stay in the home or if she doesn't she will probably move back in upon completion of said education. The American Dream is definately dead...by the time my other child reaches graduation, she probably wwon't be able to leave the home. :/

reply to post by phantomjack

All of you complainers -- get off the forums and go look for a job. I am so tired of you and your OWS friends complaining about the rich.

Compare this remark to one you make later:

I achieved what I set out to do in my life. At 19, I vowed to be a self made millionaire by age 30. I achieved that goal, and more. My father was a blue collar, working man. A union man. He did well to raise me -- on sweat and diversity. I took the football and ran with it. And because

There is no way in hell you became a millionaire inside of 11 years by going out and getting a job! If we are to take you at your word about becoming a millionaire in just a little over a decade, the real question is why are you advising people to do something differently than you clearly must have?

If all people have for ambition is working for someone else, then God Bless them and so be it, but what the hell is wrong with you that you would demand people do something that will never, ever get them close to affluence?

The Pilgrims did not set sail for the New World because they heard there really good jobs over there, and the expansion out west several centuries later was not about jobs, and that is the foundation of the American Dream! Not jobs, but every individual creating their own empire, or die trying. Certainly, if we are to take you at your word about your own affluence, you know this, so I cannot help but wonder why you are so gleefully contributing to the death of the American Dream by preaching this "go get a job" nonsense.

reply to post by Jean Paul Zodeaux


Thank you. JPZ, you always keep it real. Honestly it COULD (past tense) be done through a "JOB" in the past. Thirty years ago it could be. My father did it (However not inside of a decade). But in the past when I even got out of high school, it could be done, many of the jobs I held for long periods offered me management training etc (Circumstances being what they were I had to move or travel to get to some of those, which made me have to turn them down without the money to do so) but today in the same field (retail) there is no advancement, and most places absolutely depend on high turnover (they make sure it's a hostile working environment that any normal person would give in and leave). This is what I have seen in retail. So I went to get my degree in Technology (IT). I still have no real high hopes, the best I feel I can hope for is that I will be able to keep my present status (Just above the poverty line) and not disintegrate further. I appreciate that you always keep it real no matter how someone may not like it. I know that you are correct, today there is no way to become a millionaire on a job alone. And I KNOW a self made millionaire, he works a job too and it pays really well, but what is making it possible and made him is the realty he has bought and flipped and either sold or rented in addition to his work, plus he is now at two jobs with realty still owned and being flipped by him.

I believe it is called the American "dream" and not the "American Reality. The word dream is important, those who craft sayings use specific words. One "hopes" that the "dream" will be theirs, both key words, "hope" and "dream" are words that steer the mind to the future, where the hope of no more wars just never quite happens, or the hope of a retirement never quite happens.

The other thing is, what is the American Dream? House, kids, cars, two weeks vacation and 60+% of your money going to various gov. agencies in the form of taxes, fees, fines, levy's and so on? If that is it, the best part of that dream is that most people in that golden situation are actually debt ridden when the balance sheet is observed: house=debt, cars=debt, children=future debt (college), CC's and of course your glorious portion of the National, State and Local long term debt. So, best I can tell is the homeless guy has more of a dream scenario then the fully employed guy with all of the above, as the homeless guy is free, the "dream" guy is shackled with Sisyphus type debt and institutions demanding he keep the dream going until, well, until - not sure when it is supposed to end.

If that is the dream what are the nightmares?

I should also add that people taking apart and add slogan for America are wasting time, we don't break out the science to see if coke is "the real thing." This "American Dream" is a slogan, like I love NY, or any other sales pitch and, as such, has no inherent meaning at all.

Originally posted by Jean Paul Zodeaux
reply to post by phantomjack

 

All of you complainers -- get off the forums and go look for a job. I am so tired of you and your OWS friends complaining about the rich.

Compare this remark to one you make later:

I achieved what I set out to do in my life. At 19, I vowed to be a self made millionaire by age 30. I achieved that goal, and more. My father was a blue collar, working man. A union man. He did well to raise me -- on sweat and diversity. I took the football and ran with it. And because

There is no way in hell you became a millionaire inside of 11 years by going out and getting a job! If we are to take you at your word about becoming a millionaire in just a little over a decade, the real question is why are you advising people to do something differently than you clearly must have?

If all people have for ambition is working for someone else, then God Bless them and so be it, but what the hell is wrong with you that you would demand people do something that will never, ever get them close to affluence?

The Pilgrims did not set sail for the New World because they heard there really good jobs over there, and the expansion out west several centuries later was not about jobs, and that is the foundation of the American Dream! Not jobs, but every individual creating their own empire, or die trying. Certainly, if we are to take you at your word about your own affluence, you know this, so I cannot help but wonder why you are so gleefully contributing to the death of the American Dream by preaching this "go get a job" nonsense.

I never said anything about becoming a millionaire by working for someone else. My point was that America is the only country on earth that gives one the liberty to go out and CREATE a company by which you can work hard and achieve your goals.

And yes, from the time I started my first company, at age 23, I was worth 16 Million by age 30. Why? Because I was not satisfied working for someone else, and ventured off with an initial investment of $200 bucks and grew a company.

I am not advising anyone of anything except that instead of the constant wining, the "i am entitled" bull crap, that the only person they should be blaming is themselves for putting themselves in the position they are in.

80% of my employees are over the age of 60. WHY? Because they have freaking WORK ETHIC! Something that a 27 year old doesn't have today.

WORK ETHIC!

But instead, its the 20 something that make up the OWS movement who are clueless about what hard work is all about. Instead, they would rather sit in a tent and blame the rich for their blight.

And, unfortunately, its those 20 somethings that our country is going to rely on to change our diapers when WE are decrepit. Does that sound like something you want? Someone bit**ing about caring for the elderly, or someone who has WORK ETHIC and does what it takes?

Or, are you one of those who thinks he wont need his as* wiped?

reply to post by phantomjack

I never said anything about becoming a millionaire by working for someone else.

You obviously didn't become a millionaire through diligent and thorough reading as well. I never said you claimed to become a millionaire by working for someone else. What I did say was that you were gleefully contributing to the death of the American Dream by advising people to something you yourself didn't do, and let's make no mistakes about this, you most assuredly did advise people go get a job.

If your post was merely about castigating those who envy the rich - and to be sure envy of any kind deserves castigation - then why begin by insisting people go get a job? Why not instead argue they should make their mark and build an empire? That advise was no where near forthcoming from you.

No one has to be erudite in order to be wealthy. The evidence of this abounds, but even so, no one needs to be erudite to understand what the real problem is and that it will not get solved by some poseur claiming to be a self made millionaire loudly screaming WORK ETHIC. You're not kidding anyone sport, and do not even try to imagine that you are being challenged by some socialist loving advocate of wealth redistribution. Don't think for a single second that you in this thread have effectively advocated capitalism, and I sincerely doubt you believe in capitalism. That would require a free market where anyone can play and compete, but here you are insisting others need to go get a job and learn a WORK ETHIC. You're not kidding anyone, sport.

'Upward Mobility' is some kind of capitalist oligarchy doublespeak for 'exploitation is good'. Now if you consider that the 'American dream' is basically the same thing as 'Upward Mobility' you see that the American Dream translates to 'exploitation is good'. Now thats pretty crazy. Ignorance is strength hey.

Now think about where the term 'american dream' comes from. It was first written by writer and historian James Truslow Adams. In line with capitalist newspeak propaganda, the phrase presented to the masses has been twisted to mean the opposite of what Adams intended.

It is not a dream of motor cars and high wages merely, but a dream of social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable, and be recognized by others for what they are, regardless of the fortuitous circumstances of birth or position.- Adams

Adams wrote this in 1931 but I think its safe to assume that the use of 'the American Dream' as a propaganda slogan would coincide nicely with the invention of the capitalist doublespeak propaganda term 'upward mobility'. It is easy to forget that before WW2 America was not the superpower that they have been in recent times. The use of 'the American Dream' is post WW2. It is clear that Adams saw the American Dream as equality between all classes. A place where a man could be valued for his worth.
www.abovetopsecret.com...

In growing numbers, experts say, highly educated children of immigrants to the United States are uprooting themselves and moving to their ancestral countries. They are embracing homelands that their parents once spurned but that are now economic powers.

www.nytimes.com...
'Americans Leave America To Chase The American Dream'
www.abovetopsecret.com...