Although the American Dream may be a relatively new myth, only gaining real prominence in the 1950s during the post-WW2 era, its ethos of prosperity through hard work and perseverance has become ingrained into American society. Rooted in the Declaration of Independence, unalienable rights such as “life, liberty, and the pursuit of happiness” set the American Dream’s foundation. For many middle- and working-class Americans, this pursuit of happiness entails “upward mobility [which] has served as the heart and soul of the American Dream.” Generations of Americans, native or foreign-born, were brought up on this idea that hard work puts prosperity for them and their families within reach. However, within the past couple of decades, the economic conditions which made the Dream obtainable for so many in the mid 20th century have drastically changed for the worse. Although the American Dream continues to propagate throughout the US, instead of inspiring optimism, the myth now foster disillusionment amongst young Americans unable to obtain the prosperity promised to them.
For many people raised in the US, the American Dream constitutes much of their deep stories. Conceptualized by sociologist Arlie Hochschild, a deep story is not necessarily based on reality but rather “a feel-as-if story — it’s the story feelings tell, in the language of symbols,” a psychological narrative which helps define individual American identities. A part of their central life narratives involves working towards social mobility, which some visualize as the stereotypical White American Dream of the 20th century: a well-paying job, sizeable suburban home with picket fences, two cars, and a nuclear family. However, this Dream has seemingly disappeared in the past few decades due to changes in the economic landscape. This has left younger generations of Americans across all demographics holding an empty bag, deep stories with no way to fulfill them, a recipe for disappointment and disillusionment. There are numerous accounts of Americans who follow the success sequence of going to college, making savings, and sticking through the tough labor market, only to find themselves still struggling to make ends meet. All too common are the tales of millennials taking on too many student loans, a byproduct of college’s rising costs, only to end up underemployed. Many millennials find themselves finding work outside of their jobs to make ends meet. Even those who are fortunate to find middle-class jobs often find themselves living paycheck to paycheck.
A quick snapshot of the economic reality that younger Americans face compared to their parents and grandparents indicates these stories are no mere unfortunate anecdotes. A few years before the Great Recession, Millennials started entering the workforce, and the ensuing economic downturn stunted many millennials’ financial growth. Although previous generations also confronted severe economic slumps and downturns, the “Great Recession was the longest recession since the Great Depression, with a sustained higher unemployment rate” than recessions in the past 50 years. With the recent Coronavirus pandemic resulting in an economic slowdown, millennials face another ‘once-in-a-generation’ crisis. Throughout these crises, however, wealth inequality has continued to grow in the US. While the top 10% owned 67% of the country’s total wealth in 1992, by 2016, they “held over 77% of the wealth.” Although this small slice of American society has grown wealthier in the past decades, the average millennial faces a vastly different situation. Most US workers, not just millennials, have barely increased their average purchasing powers since the 1960s as real wage growth has stalled. Compared with Baby Boomers, “millennials currently earn 20 percent less than Boomers did at the same stage of life, despite being better educated.” These depressing statistics highlight how the American Dream’s promised prosperity may seem so far away for many millennials. Examining the cohort’s educational divide reveals why it results in economic disillusionment.
Contrary to the popular narrative, most millennials do not have college degrees. As the media focuses on college-educated millennials, the rest of the cohort often seems invisible. For this majority, whose highest educational attainment level was a high school degree, the millennials’ struggle seems amplified. While college-educated workers have experienced a slight increase in their median average earnings in the past 50 years, high school graduates have seen their earnings decrease. Although their parents and grandparents managed to afford a middle-class lifestyle with jobs that required only a high school diploma, such prosperity may appear like a fantasy for recent high school graduates. In 2013, the average high school graduate earned $17,500 less than a college graduate, and the Great Recession also led to a higher unemployment rate among high school graduates. While both college-educated and non-degree holding millennials work minimum-wage jobs, high school graduates make up a far larger proportion. The disparity is alarming as Congress has not raised the minimum wage in over a decade, even though the price of goods has steadily increased due to inflation. Unsurprisingly, this results in many non-college-educated millennials struggling to make ends meet and declining to make big purchases. A Pew Research study found that millennials who never went to college were twice more likely to live with their parents than their college-educated peers. The days of affording a middle-class lifestyle with a well-paying job found straight out of high school seem numbered. This American Dream of the past generations of high school graduates appears to be fading. As jobs are increasingly requiring some higher education beyond high school, the labor market seems to be shrinking for non-degree holding millennials. The future of college-educated millennials may not be much rosier.
Although many millennials were lured to college with the promise of prosperity, for most, this education has resulted in mountains of student debt, low-paying wages, and disappointment. While millennials may be the most educated generation, they have also racked up over 370 billion dollars of student debt. Considering the rising costs of tuition and the debt linked with higher education, it is no surprise that a large number of millennials feel that their college degrees were far too expensive and not worth the costs. Many millennials bought into the social contract, which promised prosperity in exchange for a four-year degree, but reality has been a cruel mistress. Entering the workforce at the cusp of the Great Recession, less than 20 percent of the graduating class of 2009 had a job offer. Even after the effects of the Recession started fading, college-educated millennials still faced underemployment and unemployment. The stereotype of a liberal arts graduate working at Starbucks has its roots in reality. However, even STEM majors were not free from the fading American Dream. A 2018 Strada Institute study found that nearly 43% of college graduates were still underemployed five years after graduation. Research has also shown that unemployment among college graduates has steadily increased in the past decades. For many of these college-educated millennials, it may appear that the American Dream has betrayed them. Hard-work and education have only led to high student loans and low-paying jobs, a bitter dose of reality.
Examining the millennial cohort’s economic realities reveals how the American Dream’s inaccessibility can lead to disillusionment amongst young Americans. For the non-college-educated millennials, the American Dream that many saw their parents achieve appears unobtainable. While past generations could live comfortably with grit and without college degrees, millennials who do not pursue higher education may start to feel left behind and shut-out of the middle-class. As they watch their college-educated peers achieve some of the mobility promised by the American Dream, some may feel discontent and disillusionment. Historically, this often leaves a population vulnerable to populist ideas that blame certain groups for economic woes. For many college-educated millennials, however, the American Dream also seems inaccessible. Having followed societal advice to pursue college and achieve prosperity, their only rewards have been low earnings and debt mountains. Considering the disillusionment that both groups face, it may seem understandable why some want to burn down the establishment, albeit with different color flames.