The Eroding American Dream: A Crisis Among Younger Generations
What has become of our society? When I was a child, the common consensus was that everyone from my generation would be able to attain the American Dream. However, currently, a major portion of the U.S. populace doesn’t live ‘the’ American Dream, and increasingly, individuals are being pushed out of the middle class. This trend is particularly evident among Millennials and Generation Z, as I have discussed in some of my earlier writings.
The communal wealth of the middle class has been on a downward slope for quite some time now, and this enduring trend now appears to close in on becoming a catastrophic event. The act of borrowing money invariably leads to trouble, and since 2009, our nation’s leaders have accrued and spent a staggering 27 trillion dollars we didn’t have.
The decision to inject such a vast sum of money into our system comes with severe repercussions. As a result, our monetary purchasing power has suffered significantly. Newsweek recently reported that the lifetime cost associated with living the American Dream is now pegged at 5 million dollars.
The American Dream has traditionally represented the allure of opportunity, prosperity, and upward societal mobility. The phrase was first introduced in 1931 by author James Truslow Adams in ‘The Epic of America’, where it represented the aspiration for a richer life available to each individual, based on their capability and achievements. However, nearly a hundred years down the line, the cost to realize this dream has skyrocketed.
Latest research put forward by Investopedia estimates that the cost associated with achieving the historic American Dream, encompassing homeownership, retirement plans, funding children’s education, weddings, vehicle purchases, healthcare, pet ownership, and taking annual holidays, currently stands at an approximate 5 million dollars. It begs the question: Will your household be able to earn a cumulative 5 million dollars in your lifetime?
Unfortunately, the reality for the majority of U.S. households is that they will never amass such wealth. We are living in a time where the cost of living is constantly going up. In the past, having numerous children was not unusual. But today, the expenses associated with raising children have become exorbitant. For instance, it is projected that bringing up two children from birth to their college graduation would cost around $876,092.
This gives us insight into why so much importance is placed on money in modern society. It is a harsh fact that a considerable monthly income is required to maintain a standard lifestyle. Older generations are often enjoying a middle-class lifestyle because they control the majority of the wealth. Whilst young adults are barely managing their upfront costs, Baby Boomers possess around $82 trillion in wealth, which is substantially more than both Gen X and millennials.
I am aware of numerous Americans over the age of 50 who are enjoying a comfortable middle-class lifestyle as of 2025. However, I know surprisingly few individuals under the age of 40 who could say the same. Over the years, the rate of homeownership among younger adults has significantly declined. Just observing the relevant data gives a clear image of an overarching economic downturn.
As we sadly witness the gradual disintegration of the middle class, it’s evident that the youth isn’t replacing the older generations in adequate numbers. By 2025, the majority of the population is barely getting by on their monthly incomes. Debt levels have skyrocketed and delinquency rates have followed suit, drawing bleak parallels with the circumstances of 2008.
Additionally, massive layoffs similar to 2008 are occurring nationwide. Large corporations have been steadily reducing their number of well-paid jobs, many times due to the advent of artificial intelligence. Considering the current state of affairs, how will our society fare when AI technology becomes capable of performing the majority of our jobs more effectively and at a lower cost?
The economy’s condition is certainly worrisome, and it’s clear that we’re heading into an unprecedented difficult period. However, it’s crucial not to succumb to hopelessness. It is often in the hardest times that the most significant opportunities arise. The dawn is always darkest just before sunlight breaks the horizon.
Achieving the American Dream doesn’t constitute success. You were brought into existence during one of the most critical periods in human history, and you have a unique purpose that only you can fulfill. It’s true that the worldwide disruptions and challenges can be intimidating at times, but it is imperative not to let the tumultuous world deter you from realizing your full potential.
We find ourselves in a crucial period of humanity’s timeline, and notwithstanding the trials and difficulties, we have the capacity to carve out our path. Equally, we should note that achieving the American dream is not the sole measure of success. Rather than succumbing to fear about the state of our world, we should focus on manifesting our potential, as we are all here to fulfil a unique purpose.