Redefining the American Dream in the 21st Century
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The ‘American Dream’ can be roughly defined as ‘a dream of a social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable.’ It was first coined in 1930 by historian James Truslow Adams. Whilst his vision was idealistic, he also warned of the dangers of unbridled capitalism and excessive consumption. Fast-forward to today, and that warning feels more relevant than ever. This year, only 27% of people questioned stated that ‘the American Dream holds,’ with remaining pollsters claiming they feel hopeless, cynical and doomed. For many, the American Dream feels like it's on life support.
Once upon a time, the idea that hard work alone could elevate someone out of poverty felt attainable. That vision seems incredibly distant, as income inequality has been growing for decades now. In 2024, the top 1% of earners controlled 30.8% of the nation’s wealth, whilst the bottom 50% controlled just 2.4%. The ever-growing price of things in sectors such as healthcare, real estate, housing and education has outpaced wage growth.
While economic instability cannot be blamed on one person alone, Donald Trump's presidency undoubtedly intensified the turmoil. Erratic trade policies, particularly his aggressive tariffs on Canada, Mexico, and China, made businesses uncertain. Instead of fostering growth, these moves made companies hesitant to invest, fueling further economic stagnation. American companies that rely on imported goods faced rising costs, which inevitably trickled down to everyday consumers. Households already stretched thin were forced to tighten their belts even further.
Yet Trump insists he can ‘Make America Great Again,’ claiming that the American Dream can be resurrected through bold, unconventional ideas. But does his action truly benefit the hopeless Americans? One particularly eyebrow-raising example was his interest in purchasing Greenland—a move he framed as ‘essentially a large real estate deal.’ He argues, without clear evidence, that Denmark is losing nearly $700 million annually in maintaining Greenland, portraying the purchase as a strategic and economic gain for the United States. While this may have seemed unconventional, the idea of territorial expansion is not unprecedented; in 1917, President Woodrow Wilson purchased the Danish West Indies for $25 million, renaming them the U.S. Virgin Islands. Can the American Dream be revived by aggressive territorial and economic moves alone?
Trump accompanies this aggressive stance on tariffs with claims that they would simultaneously address unrelated issues such as fentanyl trafficking and undocumented immigration. While Trump alleged these policies would encourage industries like automobile manufacturing to relocate to the United States, they inadvertently destabilized industries already vulnerable to global market shifts.
But Trump's economic decisions extended beyond tariffs. Elon Musk’s DOGE has suspended and dismissed tens of thousands of workers and the cancelled numerous government grants and contracts further fuelled economic insecurity. While Trump promised tax cuts to bolster growth, his contradictory policies complicated economic recovery efforts, leaving many Americans struggling to achieve financial stability.
Innovations in artificial intelligence, automation, and digital commerce have transformed industries, altered career pathways and fundamentally reshaped the American Dream. In March 2023 Goldman Sachs predicted that this could lead to 300 million jobs lost or diminished. Elon Musk's ventures are emblematic of modern success stories. However, Musk's promotion of volatile assets, combined with his controversial layoffs and workforce reductions, has added to the sense of economic uncertainty. Listings for technology roles are down 55% from a year ago, banking vacancies fell more than 40%, and insurance listings dropped 18%. The hyper-specialisation of industries has thus boxed and ruled out job seekers. Today the recruitment process seems never-ending, and it somehow is, as it takes an average of 43 days, which is deeply unsustainable.
Americans have thus become strongly disillusioned by the opportunities and prospects that America can provide them. Economic inequality, the rising cost of healthcare and the catastrophic national and international government policies have created a climate of instability and cynicism. Perhaps it's time to reconsider whether the American Dream might be better found elsewhere—in Europe, or even beyond. After all, if the American Dream is meant to symbolise hope, opportunity, and fairness, is America still the best place to find it? Or has that once vibrant dream quietly slipped away?