Why the American Dream has become a lie for low-income people

The American dream is alive, but not quite well. For those living near the federal poverty level, the promise of the American dream has come to represent surviving rather than thriving.

At OpenResearch, we interviewed 156 low-income qualitative participants as part of the most comprehensive look into the impacts of unconditional cash in the U.S. In the process, we asked participants how they understand and experience the belief behind the American dream: that if someone works hard enough, through their own work and determination, they can be successful.

What we found paints a complex picture of life in America and the many challenges standing in the way of economic mobility, as well as perspectives on bringing the American dream back into reach.

A complicated relationship

Roughly 40% of our qualitative participants agreed with the belief behind the American dream but offered caveats in their responses. “I also believe it takes a village,” one participant shared. Another participant, Elise, agreed with the belief in theory while acknowledging that her own experience did not align with the American dream—she was forced to leave a job she worked hard to achieve because she couldn’t find childcare that would allow her to continue working. Some participants, like Tara, wrestled with this misalignment in real-time: “I think it’s a bit delusional actually, now that I said it out loud. To think that somehow it’s going to operate differently for me than what it does for the mass majority of the world.”

Another 15% of qualitative participants ultimately agreed with the belief that hard work leads to success, but acknowledged that it isn’t universally true and that there are conditions that make it easier or more difficult for certain people. “I guess it depends on which American you’re talking to,” said one participant.

Many pointed to social connections, racial and gender identities, and socioeconomic status and upbringing as key factors that can change the perception or experience of the American dream. Some participants brought up factors like physical appearance, skin color, and gender identity, as well.

One participant, Winnie, felt that being a Black woman made it harder to get ahead than for a white male: “I think anyone can be successful, but there are some people who have to work hard as hell . . . I’m working twice as hard as the next person.”

Angel, a Hispanic participant living in Texas, highlighted the economic barriers she faced despite her efforts to move up in her job: “I couldn’t move up because I didn’t have the transportation or, like, the money to afford transportation to get to this job to make a higher and livable wage.”

“I think it is a dream”

Approximately 45% of qualitative participants answered our question about the American dream with a resounding no. They did not believe hard work was enough for success, citing personal experiences and observations that suggested the idealized American Dream was out of touch with the realities of today’s conditions. “When my grandparents were young, it was a nice house big enough for you and your kids, a dog, a white picket fence, a car, and a good job . . . that was the American dream. Now I think it’s the American dream to have enough food on the table,” one participant explained.

Many recipients highlighted the rising cost of living and decades of wage stagnation as a reason behind the decline of the American dream. Sage, a participant living in Texas, noted “the American dream. I think it is a dream. I don’t think, the further along we go, that it’s as obtainable as it used to be, maybe in the ’80s or the ’70s or the ’50s. I think it’s definitely changed.”

“Don’t think I’ve ever been told a bigger lie in my life,” said another.

Revitalizing the American Dream

After learning about the many areas of their lives where they needed support, we asked some interviewees what types of programs and policies they would find most helpful. The responses were as diverse as participants’ needs—from shelter and food to healthcare and more—yet a theme that emerged across the board was a desire to give people a fair shot at making ends meet for themselves and their families.

Multiple participants expressed a desire to increase the minimum wage. One participant, Maureen, also discussed reducing the cost of living, expressing desires for more affordable health insurance and prescriptions. Another participant echoed Maureen’s desires: “Just give everyone access to a doctor, you know. That, to me, would be a dream.” Some participants, like Tessa, zeroed in on improving housing opportunities: “Helping young people get into a home and build equity and wealth, instead of making them be lifelong renters, things like that.” Like many participants, Tessa felt she couldn’t grow her family because of her financial situation: “I would love to get married and have children, but unfortunately due to economic factors . . . this situation with the prices rising and homes being pretty unattainable it’s a lot harder.”

The need for affordable childcare came up often, among both parents and nonparents. Participants highlighted caps on college tuition, lower rent, and cheaper groceries as other forms of support that would be helpful to their lives. “We’d like to have a livable wage again,” said one participant. “Now that’s the dream . . . before it was owning my house and having time to spend with my kids. And we did have that. And then I don’t know what the hell happened.”

Importantly, the policies participants expressed interest in are not simply about receiving handouts, but rather about reclaiming agency to pursue success on their own terms, aligned with the ideals of the American Dream. As one participant, Charlotte, put it, “education, healthcare, better assistance. I mean . . . not even more assistance, but like better assistance. Like, you know, help people become more self-sufficient.”

Like many Americans today, the low-income populations represented in our research share aspirations of success and self-sufficiency: to be able to make it on their own, and create a life that feels stable and self-directed. One participant said: “The American dream is just to have meaning and purpose in your life, and to spend it with those that you love.” Another put it more succinctly: “Family. Prosperity. Abundant love.”

But, as many participants pointed out, that sense of agency does not come cheap, especially under current economic conditions. As confidence in economic mobility seems to fade, we must explore new solutions to tackle the complex societal issues that hold people back from getting a genuine opportunity at success and build a future where the American dream will not feel so out of reach.

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