Why I believe the American Dream just died (op/ed)

[Hiraeth]

Last edited Sat Apr 23, 2016, 01:07 PM - Edit history (1)

Fortune
Dan Primack

(snip)

My breaking point came yesterday, upon reading a Legg Mason survey of affluent investors, which Legg Mason defined as individuals with more than $200,000 in investment assets. It found that just 55% of those surveyed believe that the American Dream remains within reach, with only 23% “strongly agreeing” that they are living proof of its existence.

Remember, these people are prosperous, by almost any relative measure of global or American life in 2016. Their $200,000 isn’t an annual salary. It’s the amount of cash sitting in bank accounts or investments that are designed to appreciate in value. It doesn’t even include the value of their home, or even their second or third. (Legg Mason excluded vacation properties.) It’s income after tax, mortgage payments, and literally every other past expense. There should be little worry about where the next meal, or next lifetime of meals, is coming from. If the car dies, these survey respondents can afford to immediately buy another one without the help of a financing plan (save for the event of an unexpected medical disaster or macro economic meltdown).

A few more stats from the Legg Mason survey:
But they don’t feel rich. And before you tell me that $200,000 doesn’t go as far as it used to, particularly in certain cities, please realize that only 36% of those with at least $1 million in investible assets “strongly agreed” that they had attained the American Dream.

-- 64% of those with annual household incomes of at least $250,000 believe the American Dream is now out of reach.

-- 62% of those between 55 and 64 years-old believe the American Dream is unattainable.

-- Women are 14% more likely than are men to believe the American dream is unattainable.

To be sure, the “American Dream” has no official definition, making it largely in the eye of the beholder. But when asked to give their top characteristics of someone who has achieved the American Dream, Legg Mason survey respondents said the following (in order):
1.Feeling financially secure
2.Having the freedom to live the way you want to
3.Being able to retire at 65 and live comfortably in old age
4.Owning your own home
5.Knowing that working hard pays off

(snip)

more at link:
http://www.msn.com/en-us/money/markets/why-i-believe-the-american-dream-just-died/ar-BBs7N9o?li=BBnbfcN&ocid=spartandhp

[Buzz Clik]

1. I never viewed the American Dream as being so centered in capitalism.

You know, that article reads like a reject from The Onion: People earning $250,000 say their dreams are out of reach?

So odd.

[Nay]

2. As a person with a paid-off house and plenty of cash in investments, I

can also say that "the American dream is dead" without necessarily talking about myself. The fellow in the article doesn't seem to be able to see things from others' point of view -- those richer people who thing the dream is dead? Maybe they aren't talking about themselves, but their friends, relatives, and, you know, OTHER PEOPLE like regular citizens of the U.S.

[Hiraeth]

3. They are talking about themselves. IF EVEN they don't FEEL rich with all THEIR WEALTH

what does that say about how the AVERAGE JOE must feel (security/safe? ha. that is a joke more like desperate and SCARED)

That is my take away.

[mahatmakanejeeves]

9. I agree.

From the article:

But when asked to give their top characteristics of someone who has achieved the American Dream Legg Mason survey respondents said the following (in order):

1. Feeling financially secure
2. Having the freedom to live the way you want to
3. Being able to retire at 65 and live comfortably in old age
4. Owning your own home
5. Knowing that working hard pays off

I don't feel like wading through the Legg Mason website to see if they published the survey as it was presented to their clients. My guess is that the clients were given a list of accomplishments and asked to pick out five as what someone would have to have accomplished to feel that he has achieved the American Dream. Not "when did you know you had achieved the AD," but "what would someone have to do to achieve the AD?"

[Depaysement]

4. Retirement and layoff insecurity

Plus the pensionless society and continued threat of SS cuts, elimination.

[Hiraeth]

7. Yes. They are finally feeling the pinch, too. About time.

[Warpy]

5. Talk about missing the point!

The American Dream died not because people are feeling pessimistic about it, but because 40+ years of government policy depressing wages, shifting the burden of taxes downward, and shredding the safety net have actively killed it off.

If people are pessimistic it's because all hope at the bottom has been extinguished by bad economic policy from conservatives in both parties.

[Hiraeth]

6. It has DIED to the point that not even the wealthy FEEL secure. and Yes, I agree with you on HOW

it died.

I also agree that the people in this survey have a skewed view from their bubble.

[Punx]

8. Don't Forget "Free Trade"

A lot of jobs and wealth has shifted overseas because of that.

As someone who is relatively well off due to living conservatively when we had a good income, I can tell you all it would take is a major medical issue or disability for either myself or my wife and we could loose everything we have worked decades for. And we have insurance!

No doubt in my mind at the moment that my kids will have it worse.