Investopedia released its annual “American Dream” report this month, which totals the lifetime cost of eight pillars of traditional middle-class success. Although everyone’s dream is different, the report includes financial goals that many people would consider reasonable aspirations, such as being able to buy a house, raise a family, pay for healthcare, and retire comfortably. This was the first year that the total price tag exceeded $5 million, far above the median lifetime earnings in the U.S. of $1.7 million. Even two average working adults would not be able to reach this sum together.
In contrast to this disparity, 69% of people in the U.S. still believe that the American Dream is within their reach. If a comfortable middle-class lifestyle was accessible for their parents or grandparents, people today might wonder what they’re doing wrong when they struggle to achieve these milestones.
The numbers show that this is not a personal failing, but that the standard of living is indeed declining for average people. With productivity at record highs, Workers in the U.S. are not seeing the fruits of their labor. Instead, wealth is being stripped from their households and concentrated in the hands of a few. The data doesn’t lie – this is a systemic issue, not a personal one. Average Americans are working harder than ever, yet getting farther each year from being able to achieve the American Dream.
