If you read the news, you’ve probably noticed “bad vibes” surrounding the American Dream. From opinion polls to best-selling books and beloved comic books, the consensus says the American Dream is increasingly out of reach for everyday Americans.
But, much like the paradox surrounding the “vibes” economy, public sentiment doesn’t necessarily match up with personal experience. In fact, when asked about their own American Dream in a survey by the Archbridge Institute, only 24 percent of Americans said it is out of reach for their family. The rest—three in four Americans—believe they have either achieved it or are on their way to achieving it.
Contrast that with a recent Wall Street Journal poll, in which 63 percent claimed the American Dream—that if you work hard, you’ll get ahead—is not true. So what’s going on? Why are people privately optimistic but publicly negative about the American Dream, and what can we do to turn it around?
One simple explanation is that negative media is fueling public sentiment, and most people have a more accurate understanding of their own finances and economic future. Another explanation is that we look to external signs of the American Dream in others—think wealth or home ownership—while our personal evaluations include characteristics such as grit, family, meaning, and purpose. There is data to support this: The same Archbridge Institute survey found that most Americans think “freedom of choice in how to live” and “a good family life” are essential to their view of the American Dream, while only 14 percent described “being wealthy” as essential.
The good news is that a recipe exists for Americans to reinvigorate the dream. First and foremost, sound economic policy is important. States that have better environments for social mobility—a key component of the American Dream—have fewer barriers to entrepreneurship, less occupational licensing, friendlier tax codes for business, and more business dynamism across various metrics.
Utah, for instance, is renowned for its social mobility in large part because of its business dynamism. Unlike in states like California, Utah companies and individuals are not overwhelmed by red tape, focusing their efforts instead on actual business activities. Whereas corruption and predatory state action undermine individuals and the private sector, free-market tax and regulatory reforms make it easier for businesses large and small to survive and thrive across America, while creating more pathways for individuals to succeed.
But, in addition to policy reform, we also need the psychological ingredients of hope, growth, and agency. Unfortunately, these ingredients are in short supply at the national level. First, let’s look at hope. Hope is a critical component of the American Dream because, as James Truslow Adams wrote, the American Dream is about pursuing a life that is “better and richer and fuller for every man, with opportunity for each according to his ability or achievement.” Believing in a better, richer, and fuller life requires hope for the future. However, the wave of “doomerism” on both sides of the aisle threatens to become a self-fulfilling prophecy.
According to our recent research, more than 80 percent of Americans say they are hopeful for their future and the future of their family, but only 56 percent claim they are hopeful for the future of the United States. In other words, to increase belief in the American Dream, our leaders need to inspire a more hopeful and positive vision of the future.
Psychology tells us that, when we feel anxious or under attack, we become less optimistic and retreat into a defensive mindset that is not conducive to a dynamic view of ourselves and the world. Today, more Americans are embracing a defensive mindset. Democrats and Republicans stoke fear by telling us our way of life, our culture, and our democracy are being attacked by the other side. Exacerbating the alarmism, Americans are more anxious, more lonely, and less trusting of institutions than in the past. Facing such perceived calamity, what are Americans to do but retreat into defensive mode?
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Here is where we turn to agency. Agency is fundamental to hope, growth, and the American Dream. Maintaining an agentic, aspirational view allows people to dream big, set goals, overcome barriers, and live up to the promise of the American Dream. Agency is not about “pulling yourself up by your bootstraps” or going at it alone; rather, it embraces a person’s unique capabilities and potential for self-determination. When we understand that we are in control of our lives (and not just victims of circumstance), we naturally become more hopeful and oriented toward growth. Not only that, but we also recognize our ability to help others and contribute positively to our community and country.
To revive a national belief in the American Dream, we need leaders to promote a hopeful vision of the future, a growth mindset, and an agentic narrative. As Barack Obama, Ronald Reagan, and others have shown, these themes can propel electoral success and improve public sentiment.
But we shouldn’t rely on our leaders alone. Each of us, as individuals, can do our part to restore hope in the American Dream by rejecting doomerism, defensiveness, and victimhood. In 2024, America needs to be populated by people who want to make positive contributions to society and help others do the same.
Gonzalo Schwarz serves as president and CEO of the Archbridge Institute.