Tag Archives: 20 Percent

How to Revive the American Dream: The Reeves Solution

My latest article on Impakter, here is the beginning:

HOW TO REVIVE THE AMERICAN DREAM: A CLASS DISPUTE

Book ReviewThe Dream Hoarders: How the American Upper Middle Class Is Leaving Everyone Else in the Dust, Why That Is a Problem, and What to Do about It by Richard V. Reeves published by Brookings Institution Press, June 2017

Take the top 20 percent of the American population and remove from it the One Percent, the ultra-rich. What do you get? A new class, roughly the “top” of the middle class, that is changing the way America consumes, thinks, and votes.

That, in a nutshell, is the argument made by several highly respected social scientists, starting with Tyler Cowen, who was the first out with his book, The Complacent Class in February 2017. Unsurprisingly, it was an instant bestseller, he is a respected economist with a popular blog. Next out in May was Elizabeth Currid-Halkett’s excellent, Veblen-inspired The Sum of Small things (reviewed on Impakter), followed in June by two more notable books, Richard Reeves’ Dream Hoarders  and Edward Luce’s The Retreat of Western Liberalism – though the latter has a broader scope, analyzing not just the upper middle class, but the whole system.

When it comes to describing this new class, details are different in each book, but what is remarkable is that all four authors are of one voice to condemn this new class.

For Edward Luce, an Oxford-educated journalist, this new class is “tone deaf” to the demands of the rest of the middle class, particularly the “white trash” left behind by globalization.  For Tyler Cowen, it is “complacent” and static, ensconced in self-contentment, unaware of a coming revolution. For Elizabeth Currid-Halkett, it is “pernicious” in wanting (and achieving) self-perpetuation. Richard Reeves agrees with her and views it as incredibly self-centered, “leaving everyone else in the dust”.

I’d like to spend some time here reviewing Reeves’ book because it is the most propositional of the lot, suggesting how, with some simple political measures, the “American Dream”, now badly damaged, could be restored and made to work for the whole of society.

American Dream PHOTO CREDIT: FLICKR – ADRIAN

The Social Impact of Income Inequality

The centerpiece of Reeves’ argument is this:

“Postsecondary education in particular has become an “inequality machine.” As more ordinary people have earned college degrees, upper middle-class families have simply upped the ante. Postgraduate qualifications are now the key to maintaining upper middle-class status. The upper middle class gains most of its status not by exploiting others but by exploiting its own skills.”

He sees this process as resulting in class stratification. The danger is that it “may blunt market dynamism by reducing the upward flow of talent and leaving human capital underutilized among the less fortunate.”

To read the rest, click here. I hope you enjoy the review, let me know how you like it, this is a book I highly recommend, well written, highly readable and with an important message!

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