Wednesday, February 12, 2014

PART 4: The Decline of American Upward Mobility

PART 4: THE DECLINE OF AMERICAN UPWARD MOBILITY  

What is upward mobility and why is it important to all Americans.  For several centuries or more, America was built on its immigrants from all over the world. They came because with hard work there was a chance to succeed, they would become better off than in their home country. 

America was the “land of opportunity,” where they could have property, an education, be healthier, and had a better job.  Americans expect, believe, or hope that with intelligence and skill they would be rewarded and be better off than before. Up until the 21st century, for the most part the next generation of Americans was better off than their parents, at least better educated and with a better standard of living.

To insure upward mobility, equal opportunity in the US became the law of the land, where everyone has an equal chance to housing, education and succeed and become rich if they so desire, no matter race, ethnicity, religion, gender, or sexual orientation.  

The importance of upward mobility means that children from poor or middle class families can graduate from college at the same rate as those from rich families. But, as Nobel Laureate Joseph Stiglitz pointed out in his book The Price of Inequity, the underinvestment by the US in public education “has contributed to the decline in economic mobility.”[1]

Likewise, Alan Krueger’s (Chairman of the Council of Economic Advisers to the US President) spoke on “The Rise and Consequences of Inequality in the United States”, given at the Center for American Progress on January 12. Krueger’s central argument that persistently rising income inequality is likely to lead to inequality of opportunity. 

The US middle class was built on the ability of upward mobility, a key to fulfilling the American Dream. However, we now see that this is fast becoming a myth and no longer the norm as shown below from studies conducted in the US and abroad.   

Some believe “We are an upwardly mobile society with a lot of movement between income groups[2] but, in fact, over the past decade, social mobility has stalled.  For some racial groups, the situation is worse. Not only that, compared to the US, there is greater opportunity for upward mobility in many other countries much more so than in the US currently. 

To understand how this has happened along with various trends and details, please visit the website for the Center for Community Futures click on the downloadable PDF file.





[1] The Price of Inequality: How Today's Divided Society Endangers Our Future, Joseph E. Stiglitz, April 24, 2012 ISBN-10: 160819633X ,Pg 94

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