The American Dream has long been the goal for many centuries and is still the goal for even non Americans. However, inflation plays a big role in crushing this dream for many people. Inflation refers to the increase in prices of goods and services over time, which can lead to a decrease in purchasing power and a higher cost of living.

One of the major reasons the American Dream is unachievable is due to low income levels in many states. As the cost of living rises due to inflation, wages may not increase at the same rate, causing a decline in real income for many people. “Only a few decades ago, the middle class and the poor weren’t just receiving healthy raises. Their take-home pay was rising even more rapidly, in percentage terms, than the pay of the rich.” (Sergent Jim) This issue can make it increasingly difficult for people to save money, invest in education or start a business, all of which are essential for achieving upward mobility and financial success.

Inflation can also expand the wealth gap between the rich and the poor. When prices of necessary goods and services jump up, people with lower incomes may find it harder to afford basic necessities while the wealthy are able to maintain their lifestyle without struggling. “This disparity in purchasing power can further interfere with the ability of people from low-income backgrounds to achieve economic success and improve their quality of life.”

Due to the rising inflation this also creates a ripple effect on other aspects of the economy, such as housing prices and interest rates. As the cost of living increases, wages stay the same while the cost of housing may go up, making it harder for people to survive and maintain a healthy lifestyle. 

Finally, all of these factors can make it challenging for Americans to achieve financial balance and reach their goals of success and wealth, making the American Dream seem out of reach for many people.