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Money Monday: Is The American Dream Dead?

Over the weekend I was moved by the following tweets of CNN anchor Soledad O’Brien:

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I’m not one for hyperbole, but looking around one has to wonder if the old rules still apply. We were taught that if you worked hard, obtained a skill or education, and played by the rules you could create a decent life for yourself.

But increasingly it seems playing by the rules isn’t working for much of America anymore.

According to the United Nations, American workers are the most productive on the planet. Yet these workers have seen their inflation adjusted wages decline over the past three decades, while the price of housing, food, and healthcare has skyrocketed.

And the rungs of the ladder that helped people climb out of poverty are being decimated. Since 2000 the US has lost 10% of its middle class jobs. State and federal governments have slashed Pell Grants and other college aid just as college tuition has exploded.

As the New York Times reported nearly 100 million Americans are now “either in poverty or in the fretful zone just above it.” Fifty-five percent of Americans now believe that today’s youth will not enjoy a better life than their parents.

Meanwhile, the richest 10% of Americans have seen their income balloon. They now control two-thirds of America’s wealth. We are increasingly becoming a nation of haves and have-nots.

Yet, politicians like Mitt Romney claim the President’s and much of the nation’s increased focus over income inequality is all about “envy.” Others demonize the poor while simultaneously providing large tax breaks to multi-national corporations.

It’s no wonder a Pew Research Study released last week showed that two thirds of Americans believe there are “very strong” or “strong” conflicts between the rich and the poor.

But should we be so quick to paint a doom and gloom picture? We’ve overcome similar tough times in the past. In 1920s wealth was similarly concentrated in the hands of the few as it is today. But an end to child labor, the rise of unions, and educational initiatives helped build a strong middle class.

It’s not unthinkable that we could again build a nation where all children have good healthcare, top rate educations, and the other tools they need to achieve the American dream.

BMWK, do you think America is still a country we’re everyone can get ahead if they just work hard enough? Do you believe the American Dream is dead or are you more optimistic about our future?

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