Searching for the American Dream: Has Opportunity Left the Working Class Behind?

Economic struggles and rising dissatisfaction among working-class Americans have fueled political movements, particularly support for leaders promising transformative economic reforms. This trend is evident in the recent election of Donald Trump, whose platform focused on revitalizing industries, creating jobs, and addressing economic disparities. Promises of infrastructure investments, tax reforms aimed at fostering business growth, and initiatives to strengthen domestic manufacturing signal a focus on fostering economic prosperity. Many see these efforts as a potential pathway to revitalizing opportunities and creating a brighter economic future for all Americans.

Rising Economic Discontent and the Cost of Living

It’s no surprise that Trump’s election victory was tied heavily to economic issues. As shown in exit polls, over two-thirds of voters expressed dissatisfaction with the economy, and of those, nearly 70% voted for Trump. The increasing cost of living, including the prices of essential goods like groceries, has left many Americans feeling that economic gains haven’t reached their pocketbooks. Although national indicators show economic growth, individual prosperity remains elusive for many.

In contrast to this discontent, major publications praised America’s economy as “stellar” and “the envy of the world.” Indeed, stock markets hit record highs, inflation dropped, and unemployment rates were low. Despite this, the perceived economic prosperity hasn’t translated into relief for working-class families. Even in Mississippi—the poorest U.S. state—average wages surpass those in developed countries like Canada, the United Kingdom, and Germany. Yet, the purchasing power of everyday Americans doesn’t seem to match these optimistic reports, as basic costs continue to climb.

The Wealth Gap: Persistent and Growing

While wealth has increased across income groups under the Biden administration, the distribution remains vastly unequal. A Federal Reserve Bank of St. Louis report shows that from 2019 to 2022, all groups saw wealth gains, with the most significant gains among low-wealth groups, including Black and Hispanic families. Yet, despite these gains, the wealth gap between Black and white families remains substantial. Black families hold only 16 cents in wealth for every dollar held by white families.

A Duke University study published in May indicates that this racial wealth gap widened between 2019 and 2022. The average wealth disparity between Black and white households rose by 38%, further revealing the challenges of wealth accumulation for Black families. The roots of this gap stretch back through history, with practices like redlining and discriminatory lending policies that systematically stripped wealth-building opportunities from Black families. These persistent barriers make it difficult for individuals to close wealth gaps and accumulate intergenerational wealth, thus perpetuating economic disparity.

Promises of an Opportunity Economy

During her campaign, Vice President Kamala Harris proposed building an “opportunity economy” that would prioritize universal healthcare, accessible education, tax credits for childcare, and enhanced K-12 education. While such progressive initiatives are common in high-quality-of-life nations, they are frequently criticized as “socialist” in the United States. These initiatives focus on creating equal opportunities, rather than guaranteed outcomes, by removing socioeconomic barriers for young Americans.

However, political division hampers the potential for bipartisan support on such policies. As The Economist cautioned, America’s greatest economic threat lies not within policy but in political discord. Continued gridlock could obstruct meaningful reform, risking long-term economic growth and further straining American workers.

A Systemic Issue: America’s Inequality Crisis

Nick Hanauer, a wealthy entrepreneur, issued a stark warning years ago, highlighting the unsustainability of extreme economic inequality. He cautioned his “fellow zillionaires” that without addressing wealth disparities, social unrest would follow. Despite Hanauer’s appeal for reforms to narrow the income gap, American society remains increasingly polarized along economic lines.

Tax cuts enacted in 2017 under the Trump administration primarily benefited the wealthy, with top earners receiving tens of thousands in savings compared to the minimal relief provided to low-income families. This disparity fuels criticism that the American economy prioritizes the wealthy while leaving middle- and lower-income families struggling.

Looking Ahead: Trump’s Economic Plans

In his recent campaign, Trump proposed extending the 2017 tax cuts, reducing the corporate tax rate, and imposing tariffs on imported goods. However, these tariffs, intended to boost domestic industries, would likely increase consumer prices. He also suggested repealing green energy tax credits from the Inflation Reduction Act, which have been instrumental in creating jobs and lowering energy costs, particularly in Republican-led states.

Trump’s economic plans could drive inflation back up to 9.3% by 2028, effectively reversing progress made under the current administration. Furthermore, the Tax Foundation warns that interest payments on the national debt could stifle economic growth, affecting income levels across the board.

The Need for Structural Change

The struggle for economic opportunity in America is longstanding, with roots in both policy choices and social inequities. As past elections have shown, promises of restoring the American Dream resonate deeply with those who feel left behind. The rise of plutocratic candidates is paradoxical, as they often represent the wealthy class whose interests they protect. Whether Trump’s policies will offer any relief to economically disadvantaged voters remains to be seen, but the need for genuine reform has only become more pressing.

Restoring the Land of Opportunity

Many Americans are still waiting for their chance at economic stability and upward mobility. For the land of opportunity to truly live up to its name, bipartisan commitment to reducing inequality and fostering inclusive growth is essential. Political leaders must address these systemic issues to build a fairer and more prosperous society for all Americans, not just the privileged few.