Back in the 70s, stopping by the gas station would cost thirty-six cents per gallon. Today, due to the rise in cost of living and growing income inequality, a gallon of gasoline could cost between three to five dollars (Waggoner, 2022). The American Dream has been around for decades. It gave people hope that they would live a successful life while living in the United States. As the cost of living swells and income inequality grows, the American Dream is unattainable for people who live in the United States.
Living in the United States fifty years ago was much more affordable than today. In an article by John Waggoner, he talks about how greatly prices have increased throughout the years. According to his article, “50 Years of Inflation: What Things Cost in 1972,” “Inflation has averaged 4 percent the past 50 years, meaning that, on average, things that cost a dollar 50 years ago would cost $7.03 today” (Waggoner, 2022). The rise in cost of living has not only affected housing but everyday household items, too. It is overwhelming to realize that the price of items has multiplied seven times since the 1970s due to these shifts in the economy which makes it harder for families to afford basic necessities.
With the growing income inequality, high-income households are able to stay rich while lower income households remain poor and are unable to earn more money. For years, there has been a gap between the rich and the poor, but only recently the gap has become wider. In the article, “Our Broken Economy, in One Simple Chart,” “In recent decades, by contrast, only very affluent families — those in roughly the top 1/40th of the income distribution — have received such large raises. Yes, the upper-middle class has done better than the middle class or the poor, but the huge gaps are between the super-rich and everyone else” (Leonhardt, 2019). This can reveal that the upper middle class does do better than the lower income class but, there is still a big gap between the rich and the poor making income inequality a growing problem.
Some may argue that income inequality is a global issue instead of only an American one. Although this is true, there are countries like Canada that do not have income inequality. With that being said, only about 30% of England’s children who are born into poor families remain poor as they get older. This percentage gets even smaller in wealthier countries located in Europe (Robert, 2014). Additionally, many workers in Canada receive more benefits than people who work in America. These examples can demonstrate how income inequality can vary in different countries while also showing how deeply it affects America.
To summarize, the American Dream is no longer achievable due to the rise of cost of living and growing income inequality. These problems can make it harder for families in lower income classes to improve financially causing a huge gap between rich and poor income classes. The American Dream should not be attainable for just people of wealth but attainable for everyone.
