Monday, June 5, 2017

The American dream? Top 20% pulling away from the rest, study finds

Does the American dream exist? Or has the middle class ruined it by hoarding opportunity on a scale that makes even the infamous one-percenters appear harmless and ineffectual?


That’s the question economics professor and Brookings Institution fellow Richard Reeves has set out to answer, and his findings are worrying: the top echelons of the US middle class – those earning over $120,000 – are separating from the rest of the US, and pulling up the drawbridge behind them.


The result, Reeves writes in a new book Dream Hoarders, out this week, “is a less competitive economy, as well as a less open society”.


“The upper middle class families have become greenhouses for the cultivation of human capital. Children raised in them are on a different track to ordinary Americans, right from the very beginning,” he writes.


The upper middle class are “opportunity hoarding” – making it harder for others less economically privileged to rise to the top; a situation that Reeves says places stress on the efficiency of the US economic system and creates dynastic wealth and privilege of the kind the nation’s fathers sought to avoid.


“The US labor market is mostly meritocratic and not some kind of medieval cartel,” Reeves told the Guardian, “but it’s what happens before that that is unfair.” The problem, he says, is that people enter the race with very different levels of preparation.


“Kids from more affluent backgrounds are entering the contest massively well prepared, while kids from less affluent backgrounds are not. The well-prepared kids win, and everybody pretends to themselves it’s a meritocracy,” he says.

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