Sam Becker
September 10, 2014
It looks like the inevitable has finally caught up with us:
the American Dream is no longer affordable. We’ve heard about the possibility
for years, and according to a study
put together by USA Today, a six-figure income is what it really takes
to put all the pieces together. In fact, the exact figure is $130,357, which
they arrived at by calculating the cost of a family’s essential expenses, some
extras, and taxes/savings. Now, this is what they found was needed for the
average family of four — two adults and two children.
If $130,000 seems like a lot, that’s because it is. Even
with two adults working full-time, that can be a number out of reach for most
people. According to the U.S. Census Bureau, median household income
between 2008 and 2012 was $53,046 per year, less than half of what the USA
Today study calls for. While the economy has been picking up steam as of
late, it’s still not the same situation that led to prosperous years for the
middle class during the 1990s.
The biggest issue — and the factor that is putting the
‘American dream’ out of reach for the vast majority of people — is that they
simply do not have the financial power they did before. The cost of living has
been skyrocketing over the past ten or fifteen years. Just about every standard
purchase, whether it be for a home or for a gallon of gasoline, has seen prices
jump dramatically. Food prices are also through the roof, along with healthcare
costs and transportation.
The other side of the coin is that wages and compensation
have flat-lined. As everything else has gone up in price, wages really haven’t
budged, leading to erosion of purchasing power. Ever wonder why so many retail
stores and restaurants closed over the past five years? It’s because those
in their target demographic, the middle class, simply don’t have the money to
go there anymore. The Economic Policy Institute looked deeper into the issue, and found that flat wages and job losses
have been the major barriers to economic prosperity for many in the middle
class.
“This lost decade for wages comes on the heels of decades of
inadequate wage growth. For virtually the entire period since 1979 (with the
one exception being the strong wage growth of the late 1990s), wage growth for
most workers has been weak. The median worker saw an increase of just 5.0
percent between 1979 and 2012, despite productivity growth of 74.5 percent —
while the 20th percentile worker saw wage erosion of 0.4 percent
and the 80th percentile worker saw wage growth of just 17.5 percent,” the EPI
says.
Eroding wages and increasing costs — this is the
intersection that is causing the middle class to disappear. Most of the
middle and lower classes in the U.S. have been sold on the idea of the
‘American dream,’ and have worked hard to attain it. Putting it out of reach, all
the while expecting people to continue buying into the ‘meritocracy,’ is going
to eventually come back to bite you.
The Bare Necessities
Getting back to the USA Today study, the essentials
that are mentioned are the basic tenants of life in modern America. The study
tallies up several different price points — $17,062 for housing, $12,659 for groceries, $11,039 in vehicle expenses and just over $9,000 per year
in medical expenses — all to get a subtotal of around $58,500 for the
essentials. That alone is above the median household income.
There were a few other things taken into account: apparel,
utilities, and education expenses, but the items listed above were the major
price points. There is also a sound argument to include things like Internet
and telephone service in this category, as they are required for daily life by
most. Instead, they were listed under the ‘extras’ category.
One other area that is not taken into account that the
majority of the population is dealing with is debt. Credit card debt and
student loans, neither are put into the calculations. It’s possible that these
could be factored in to things like education expenses, or miscellaneous
expenses, but for a lot of people, debt repayment represents a big monthly
expense. According to Nerdwallet, the average American’s credit card
debt tallies up to more than $15,000, and student loan debt is more than
$33,600.
The Extras
Moving away from the bare necessities and on to the ‘extras’
category, USA Today figured in things like family vacations, entertainment,
eating out at restaurants and cable/Internet costs. All together, the end
figure totaled more than $17,000 per year. Now, right off the bat many people
will say there are plenty of costs that can be eliminated in this category, and
they are correct. For example, more than $4,500 is allocated for family
vacations, which can be drastically reduced in a number of ways.
However, things like Internet expenses are more
appropriately filed under the ‘essentials’ category. A great deal of
individuals rely on the Internet for work and school, and many of us really
can’t imagine life without some sort of online connection. There are ways to curb
the cost as well, by using public libraries or coffee shops with public wi-fi
access.
As far as entertainment and eating out is concerned, there
is always wiggle room to cut down the budget. Entertainment especially, which
can be heavily reduced through modern technology. Again, public libraries have
vast book and movie collections, available for free many times. A Netflix account can supply hundreds, if not thousands of hours of
entertainment for less than $10 per month.
There are ways to chip away at the ‘extras’ category to save
some money. But even with money saving methods in place, it’s still an area
that will incur unexpected expenses and cost families plenty over the course of
a year.
Taxes and Savings
The final category looked at in the study is that of taxes
and savings. The former everybody takes part in, the latter, well, most people hope
to take part in. A lot of people saw their savings ruined by the financial crisis, in which either banks gambled it away, or the loss of a
job required those who had a safety cushion to actually dig into it. As the
economy rebounds and more people get back to work, setting aside money for a
variety of savings accounts should become a common expense in many households.
USA Today
pegs the total cost of tax and savings annually at $54,857. The majority of
that figure — $32,357 — comes at the cost of state, local, and federal taxes.
Of course, there are many ways to reduce that tax bill, but that is the number
they landed at. The other large expense lands at a figure of $17,500, which is
attributed to 401(k) retirement savings. Assuming you are contributing the maximum amount, that is
roughly the number USA Today came up with.
Finally, college savings for two children tallied up to
$5,000 per year. Of course, as the cost of education increases every year, saving even that much annually probably won’t
leave the kids with enough to pay for their education. As disheartening as that
is, college savings may be an area that should be increased in the
calculations.
These are the major expenses that USA Today‘s study
looked at to arrive at their annual figure of $130,357. Sure, many things are
debatable, and there are some expenses that were not taken into account, while
others could be reduced through consumer choice and money saving tactics. One
important thing to mention is that it’s not just about building wealth and
getting rich, but also about securing a future for the next generation.
Speaking with USA Today, Cornell University professor
Thomas Hirschl made that point very clear. “It’s not about getting rich and
making a lot of money. It’s about security,” he said. “They want to feel that
their children are going to have a better life than they do.”
Assignment:
Post your responses to the questions below as anonymous comments. Email me your response with the block # in the subject line.
1. Why is the American Dream unattainable to the majority of Americans (what two factors does the study identify as being responsible)? Are most people even within reach of the income required according to the study?
2. What costs in the study do you think were underrepresented or overrepresented? Are any items categorized incorrectly (for example: is internet and phone service really a luxury or would you consider this to be more of a necessity?) Are there any costs that are completely missing from the study?
3. What is your reaction to this study/ article? Why?
The American Dream has become unattainable for the majority of Americans according to author Sam Becker. For one thing, this is because people can no longer afford to keep up with expenses. The study conducted states that in order to live a comfortable lifestyle, the average family of four needs about $130,000. This is a very high amount and even with two adults gaining an income, reaching this total is almost impossible for many families. The article mentions that factors that are restricting the “American Dream” for many is that the cost of living has increased exponentially in the past ten or fifteen years and that the wages and income rates have flat-lined. With regards to an increased cost of living, prices in homeownership, gasoline, food, transportation and of course healthcare have all leaped tremendously. Additionally, it doesn't help that wages have stayed the same as prices around them have gone up. For that reason, people can no longer afford the inflated goods and services that businesses offer.
ReplyDeleteThe study provided by USA Today outlines some common prices which all add up to an average $130,000 needed by a family to live comfortably. Based on my own experience and seeing other families survive, I believe that apparel under the Essentials category is slightly underrepresented. Today’s world is full of inequalities and many people I have seen spend more on apparel in order to either try and create a personal identity or try and fit in by wearing clothing that parallels famous idols. With that being said, apparel geese days does not come cheap and I think that apparel would probably be about $500 to $1000 more, depending on the family and the location they live in. Furthermore, I think that internet and cell phones should be under Essentials rather than Extras. In today’s modern era of technology, people at every corner are holding a cell phone. Also, around the country students are switching to online textbooks and notes. For these reasons, I think Internet and cell phones should be placed under Essentials. Additionally, I think that more and more people are buying groceries and food products to make meals at home. Therefore, the restaurants section under Extras seems a little overrepresented to me. It should maybe be around only $1500 to $2000, rather than $3667. However, this means that the groceries cost should increase slightly to about $13000 because people will need to go and buy more foods if they are eating out less. Also, as mentioned in the article, education costs are increasing drastically. That is why I think college savings should be increased from $5000 to maybe around $7000 annually. Otherwise, the rising costs will make it very challenging to send kids to college. All in all, I think that the study has covered all of the day-to-day costs needed and no costs are completely missing.
I am not surprised at all that in order to live comfortably for a family of four, the cost of living has reached $130,000. I have experienced the costs of daily products and services to go up just as was mentioned in the article. A major aspect that I realized was increasing costs in education and healthcare. A couple of years ago, I would have thought that many of the items in the study are overrepresented. However, after understanding exactly how much money my family spends and how we spend it, I understand that all these costs are not small at all. It is upsetting that in a country where everyone is supposed to receive equal opportunity, people are being forced to pay costs that far exceed their proportioned wages. However, I believe that by slowly regaining control, the American Dream can be attainable for a generation in the future. But, for that, we must start saving our economy now.
The American Dream is unattainable to the majority of Americans today. A study by USA Today did a study and calculated the lucky number is $130,357 for essential expenses, few extras, and taxes/savings for a family of four- two adults and two children. That number is with two full-time jobs, the amount is out of reach for most people. One reason is because people lack the financial power they had before, prices are through the roof. Also, wages and compensation have flat-lined, so while the prices of living go up, the salaries remain dormant. The middle class cannot afford everything they used to be able to, so stores will go out of business because their target class cannot afford their goods anymore. These two reasons are causing the middle class to disappear.
ReplyDeleteUSA Today’s study shows what they feel to be bare necessities, extras, and taxes and savings. In my opinion, education expenses should have had a number value, not grouped with apparel and utilities. Educational expenses are increasing rapidly. For example, in our school calculators used to be handed out free of charge for the school year, now students are expected to either a) buy one from $100-$200 or b) rent one from the school for $40. Also, some teachers have requirements for materials, a student will need XYZ for the class and by looking at the cost for all classes it will soon add up. I also think that the internet was put in the wrong spot. It shouldn’t be under an extra when the majority of homework assignment are online (for example this blog post). Students need internet for almost all classes, its a necessity now and no longer a luxury.
My reaction to the article is that it’s true- the American dream is no longer available for most people. I’m not surprised due to the increasing prices of living and stagnant wages that a family of four would struggle to accomplish it. Wages aren’t changing as prices are going up, causing people to buy on credit, and then go into debt when they can’t afford those expenses. Wages should rise as prices rise to create a more stable economy, but that won’t happen, no one wants to raise the minimum wage or pay their workers more, then they would fire people so then they would pay less people. The economy already went through a Depression in 1930s,and a Recession in 2008, what’s next to come except for desperation. We need to change our ways whether it be wages, expenses, or costs in general, based on studies and data the future isn't looking too bright.
ReplyDeleteThe American Dream is unattainable to the majority of Americans because the cost of attaining the American Dream is $130,357. This number was discovered by calculating the cost of a family’s essential expenses, some extras, and taxes/savings. Now, this is what they found was needed for the average family of four — two adults and two children. In 2012 the median income per family was $53,046 per year with two adults working full time. One reason that the American Dream is unattainable to the majority of Americans today is that most Americans today do not have the financial power they have had before. As Sam Becker writes: "The cost of living has been skyrocketing over the past ten or fifteen years. Just about every standard purchase, whether it be for a home or for a gallon of gasoline, has seen prices jump dramatically. Food prices are also through the roof, along with healthcare costs and transportation." The other factor responsible for Americans not being able to reach the American Dream is flatlined wages/compensation. As the cost of living kept on getting higher the wages of Americans remained the same. People did not have the money for past luxuries ,such as going to a fancy restaurant, anymore.
In this study I think the Essentials cost is underrepresented.Especially apparel. Fashion is constantly changing. What is in this month would be out the next. For example, In middle school for the first half of the year wearing basketball shorts was in. Basketball shorts cost anywhere from 15-30 dollars. The second half of the year people started to wear Khakis and it became a widespread acceptance that if one did not wear khakis to school they were not cool. Not cool for school. Khakis cost anywhere from 30-50 dollars. I buy mine from Hollister, Abercrombie, or Aeropostale and these brand name stores sell Khakis for relatively high prices. Taking all this into consideration I believe that Apparel would be anywhere between 3,000-5,000 for a family of four.
I think Extras are overrepresented. Most families go on vacation for an average of 1 week max; taking into perspective my own family summer vacation. My family spent about 3,500 dollars for 1 week in Orlando. $300 dollars for every night and we stayed 6 nights. $1800 dollars. We used $1700 dollars for shopping and popular tourist destinations. Also, I believe cable, satellite, and phone... are overrepresented. Nowadays all these companies are competing against each other offering cable, phone, and internet in packages for a lower price. For example, Optimum offers this "Triple Play" for 84.99. For a year it would be under $2,000 (taking into consideration cell phone bills too).
My reaction to this article was "Wow I've been living the American dream and I don't even feel it." Both my parents make 6 figure salaries and I don't feel like I have reached the American Dream. We don't really go on vacation a lot because they have work and I have school. They also need to save up TENS thousand dollars for college every year. Taking all this and more into consideration, I think the American Dream is always unattainable because the way America is structured today one does not really have the TIME to actually live the American Dream. It is either Work or School and Weekends are all about sleeping.
This article was interesting and brought up many good points about the costs of attaining the American Dream nowadays. The two factors responsible for the American dream being unattainable are a rise in living costs and a flat line in wages and compensation. Everything has become more expensive, from homes to food to transportation to healthcare. Every standard purchase has gone up in price, which makes it more of a challenge to buy what a family needs. Wages are a huge part of the problem , too. Productivity has seen a 75% increase while wages have only gone up an average of 5%. The income of middle class workers simply isn’t enough, and this has brought purchasing power down, which has a negative effect on the economy as a whole. According to the study, a six figure salary of about $130,357 is needed for a 2-adult, 2-kid family to live comfortably. Most American families make less than half of that on average, $53, 046.
ReplyDeleteMany different costs were grouped into categories and presented in this study. I felt as though most costs were accurately represented, although I think some costs were exaggerated. The items grouped as “extras” could’ve had smaller figures because things such as restaurants, entertainments and family vacations can always be made cheaper by finding creative and resourceful alternatives. I also think the author should’ve put more of an emphasis on the problems with debt, because I think that’s a major economic pitfall of many American families today. Also, it would have been good to note that medical costs can be much higher than the estimate, because healthcare can be unexpected-accidents or unexpected treatments can result in much higher costs.
Overall, I thought this study was well conducted. The results were logical and for the most part seemed like an accurate estimate of living costs in America. I thought it was interesting to see how much costs have risen in crucial areas such as education. It is important to consider how one family must also put away for the next generation, to give their kids a good chance at comfortable living. I think if we work to fix some of the economic problems in our society-specifically those affecting the middle class-the American Dream may one day be more attainable for more people.
According to the article’s author, Sam Becker, the American Dream has become unattainable for the majority of US residents. One of the reasons behind this underdevelopment would be the inability to keep up with the expenses of the American population. According to research, a typical standard lifestyle would require a family of four to spend about $130,000 annually. Clearly this amount is very large and is nearly impossible for many American families, even with an income for both parents, to develop every year. The increase in the cost of living and flat-lining wages/income are some of the factors that inhibit the American Dream for many Americans. In addition to the increase in standard living costs, other facets of daily life have become unaffordable as well. For example, gasoline, food, health, transportation, home ownership, etc. have all grown to ridiculous proportions. Considering the prices are going up while the wages have been constant the whole time, it is no surprise that people can no longer afford to attain the dream that many people have been chasing their whole lives.
ReplyDeleteUSA Today developed a study that outlines some common expense which in the end, at up to $130,000 annually, as stated above, to live comfortably. In my opinion, I feel that education should not be grouped with apparel and utilities. It should have its own section. I also know that school costs are slightly underrepresented while apparel is greatly underrepresented. Education costs are rising in terms of previously attainable resources. Calculators, for example, have been provided by schools to students for years and years. Now, however, schools are charging students to borrow one for a year. Also textbook prices and standardized tests are demanding higher costs for better quality and effectiveness. In the apparel sections, I can speak from experience when I say that in today’s world, clothing prices have gone higher. Many people use clothing to identify themselves or create a name/reputation, in other words. Doing so would require a wide variety of options which would require a large sum of money. Considering this, apparel would most likely be more than stated by at least $800-$1000 dollars for the regular person.
I personally am not shocked by the fact that the cost of living has risen to 130 K dollars a year for a family of four. Recently I have become more involved in my family’s finances and have taken initiative to buy clothing, groceries, or other necessities on my own. It has come to my realization that many of the things I took for granted before are actually far more influential on one’s economic status than I could have imagined. Understanding how the industries and money works, I can see that these costs are not small at the least. It isn’t fair that many people who do not make as much as others are still expected to pay the same amount for certain necessary resources.
According to Sam Becker, the American Dream is now unaffordable for the middle and lower classes of the United States because the price for living has increased immensely, while the wages of workers has stagnated. The price of living a normal life for a four person family (2 adults and 2 children), is currently $130,357.00 a year, while the average yearly income for the same family situation is not even half that, so the American Dream is not even within striking distance for most American families. So how has this come to be? Becker stated that it is due to "inadequate wage growth", in which wages have only increased a meager 5.0% since 1979, while productivity grew 74.5% (Becker).
ReplyDeleteI felt that the costs for utilities and healthcare were underrepresented in the article, especially since most families in New Jersey pay more for these essentials than what was reported (even though the numbers were an average for all states). I also thought that housing expenses and family vacation were over-represented in this case, seeing as my family, which is almost three times the size as the one speculated, pays much less for these two points. There are also a few points that are incorrectly categorized such as college savings and internet. College savings, in my opinion, should be categorized under educational costs, seeing as they are meant to pay for education in a certain field after completing the graduation requirements of the school system the government has established. I also believe that internet services should be placed under utilities, because they are necessary for any student and any successful American worker. Even though many points were considered when calculating the final cost for the American Dream, I feel that some important points were not considered in the report. These points include extracurricular activities, tutoring, and childcare (which would increase the total cost by $2,500 at least).
At a first glance I would say I was completely shocked, by the cost of the American Dream, but upon reading further, it started to become more reasonable. Even after reading the article though, I still am awestruck with the difference between the cost of living the American Dream and the average income for an average family, because I believed that even though prices were rising and wages were barely increasing, I never thought the situation was this large. This difference completely undermines the whole point of the American Dream, which is that every person has the same chance of succeeding as the next. Now only those who make the most have a chance of succeeding in society, while most other normal sized American families struggle with the hurdles that the top 1% basically steps over.
The American Dream is no longer attainable by the average American. This is due to two main factors: the price of living has gone up and yet wages and compensation have flat lined. So as the prices of food, gas, education, medical care have gone through the roof, people are being paid the same amount of money, which compared to growing expenses seems like less and less every time they go grocery shopping. According to US Today the exact expenses (so all their basic expenses, some extras, and taxes/savings) for living in a family of four (2 adults and 2 children) costs $130,357, yet according to the U.S. Census Bureau, the median household income was $53,046 per year (for a family of four). That’s less than half of what it actually costs to live the American Dream.
ReplyDeleteI think the extras costs were a little over represented yet the necessities weren’t. Internet may seem like a luxury, but in the world we live today we all need internet. Half of my homework is done online, and therefore the internet is a necessity for me and for tons of other Americans. The counter to this would be that you could go to a coffee shop or a library but how would you get there? By car? Public transportation? All of these cost money, and therefore more expenses would add up to the necessities. Either way there’s always a price to pay. Not many things are free now a days. The article did manage to cover all of the costs I could think of.
My reaction to this article is one of disappointment. We’ve been learning more and more about this problem and I’m honestly so disappointed that those with money and power won’t do anything. We learn history so we learn from it, not so that we can repeat it. Which is exactly what’s happening now. These higher prices, same wages, and a 1% with all the power is exactly what led to a Great Depression. I also feel terrible for the families that move here to give their children a better life and to get a second chance, because they’re being led into a false hope. We came to America with that idea in mind. My dad had lost his job during an economic crisis in 2001 in my country and my parents decided to seize this opportunity and use what they had left of their savings to go to America so that my brother and I wouldn’t have to grow up in such a bad country. So we came to America but with the different currency we didn’t really have too much money. Luckly over the years we’ve managed to save a little more and move to a richer county and get a house (we used to live in a small apartment). But some families that move here never budge from their economic standpoint. America is a sort of ray of hope for those who want a better life, but now that life has become unaffordable.
The two main factors making the American Dream unattainable as cited by the article include wage erosion and increasing costs. The article states that the average income for a worker is not even half the amount of money needed to live the American Dream.
ReplyDeleteThe article only briefly mentions student loans, which I believe is a huge contributor to making the American Dream unachievable. College costs anywhere between $20,000 to $45,000 a semester. If a student starts off with this large amount of debt, then it makes saving money and living comfortably nearly impossible. And in today's society, getting a college degree is a necessity to secure a high paying job. I think that the study does a good job at representing what item falls under a luxury or a necessity. I agree that technology, phone service and internet service is a necessity in the majority of jobs in America today. However, I also agree that there a several ways to cut down the cost of these items. Do we really need that brand new paper thin Mac? I don't think so.
Finally, my reaction to this article was a mixture of shock and fear. As a student who is going to be going through medical school soon, the prospect of student loans is terrifying. It is like starting a race 10 meters behind the starting line; you are at a disadvantage before you even start running the race. Luckily, the professions I am interested in have high paying salaries so I think that with hard work and dedication, the American Dream is still within reach for me. However, I still maintain the American Dream is too far out of reach for the majority of Americans.
According to Sam Becker, the American Dream is no longer attainable. For a family of four, USA today calculated that the cost of attaining the American Dream is $130,357. This is because the price of living has significantly increased, including things such as gasoline prices, food prices, transportation, and healthcare. With these prices surging, the wages and income rates have flat-lined. These are two of the contributing factors that make the American dream unattainable.
ReplyDeleteIn this study, I believe apparel is underrepresented. Since what’s cool to wear in society is always changing, the amount of money spent on clothing is increasing. Shoes nowadays are very expensive. If you play a sport, the specific sports shoes cost more than any regular pair of shoes. For example, this past year I spent $210 for two pairs of basketball shoes. The price of clothing is also very high. For a nice pair of jeans at American Eagle, it would cost about $40. As a growing teenager, clothes that I wore last winter might not fit anymore, so I have to spend more money on new winter clothes which can be expensive. Educational expenses are also underrepresented. The school no longer gives students calculators, so I have to purchase my own or rent one from the school for the year for $40. In order to be part of certain clubs, you are required to pay a due of either $15 of $10. These dues add up making it expensive just to join a club. Additionally, the internet and cell phones should be switched from extras to essentials. Nowadays, everybody uses the internet and cell phones as a way of communication. Also, many teachers will use online textbooks or put homework on the internet. I think groceries expense is overrepresented because many people including my family go out to eat more often than buying groceries and making meals. College savings are underrepresented because education costs are rising. For example, it costs anywhere from $40,000 to $55,000 per year for many colleges. I think something like entertainment is missing. People often go to the movies or go to a sports game and this can add up and become expensive. Overall, these numbers are high, but far from unexpected.
I was not really shocked by these numbers, but shocked that the American Dream has really become unattainable. Both my parents make significant amounts of money, but I do not feel like I am living in the American Dream. It’s not something you wake up and say wow I am living the American Dream. I was not shocked because the prices of everything have become extremely expensive. This is also sad because $130,000 is a lot of money to make between two working people for a family of four. I take things for granted every day and do not realize how hard it is for people to live like I do.
The American Dream is unattainable to the majority of Americans because they no longer have the same financial power as before, and, additionally, wages and compensation have appeared to flat-line. When calculating the cost of a family of four’s essential expenses and some extras and taxes/savings the total came out to $130,357. This amount is out of reach, even for people with two adults working full time. In fact, the median household income from 2008 to 2012 was only $53,046. By saying that Americans no longer have the same financial power as before, the author was expressing that the price of every standard purchase has skyrocketed, especially gas prices, food, healthcare costs and transportation. The real problem is that as the prices rise, the wages stay the same. This leads to restaurants and retail stores closing because the middle class can no longer afford to eat out and the restaurants and stores are unable to pay for food and merchandise.
ReplyDeleteUSA Today did a study providing the common amount for essentials, and extras, along with taxes/savings, leading to the total income needed. The main cost that was underrepresented would be student loans. As previously stated, wages have flat-lined, but that does not stop college education from increasing. The study suggests that $5,000 per year is the amount saved for college expenses for two children, which essentially is not much at all. Each year, college expenses are rising, but the amount saved stays the same, if not declines. As Thomas Hirschl, a Cornell University professor says, “It’s not about getting rich and making a lot of money. It’s about security. They want to feel that their children are going to have a better life than they do. Essentially this all revolves around student debt and loans. Nobody wants to have to worry about college loans when they are trying to start a family. My cousins are in their late thirties, early forties and are still paying off college loans. At the same time, they are expected to be saving for their childrens’ college educations. The average cost for colleges is around $40,000 for out of state students, that totals to $160,000 in four years and considering these prices are on the rise, parents now need to be saving at least double, which would be $10,000 for two kids and the kids will still have close to $100,000 in student loans. Besides the college loans being underrepresented, there is also an item categorized incorrectly. That item would be Internet costs, which is placed under extras, but modernly speaking should be categorized within essentials. Internet is used as an essential to paying bills online, researching and completing homework for school, and emailing and working for work. While the study seems to include all common costs, both college loans and Internet access are major parts of our lives and need to be priced accordingly.
When glancing over the beginning of the article, it was a little surprising at how high the cost of the American Dream really is. Once I continued to read and saw the facts and how it all comes together, it became clear that $130,357 is only the bare minimum, it is just enough for the average family to get by financially. Considering the profession I have always had a passion for only makes around $60,000, according to the median salary, I know I will be at a disadvantage when it comes to living the American Dream. This is why most people have dropped their passion and thought about a future profession in terms of money. The American Dream is no longer about living the life you desire and making money at a career that you love. It has now become solely about the easiest and quickest way to make the most money.
The American dream is a concept that every American strives for in their life. To be able to live life to the fullest is the ideal life for that of Americans. This, however, is unattainable for many. One reason being the cost of living has gone up in the past years. Mortgages as well as food and gasoline have all seen price jumps. The other point is that the amount of money that people earn is stagnate or if anything decreasing. This makes it harder for people to purchase the goods they want to not only fuel the economy but also achieve the American dream. The increasing cost of living and rising prices caused major inflation. Inflation is the key point in the destruction of the American dream. The majority of Americans are not anywhere near attaining the income required in the study. Only the top 10% of Americans make over $130,000 a year. This essentially means that the American dream is only attainable to the top 10% of Americans.
ReplyDeleteAs for the actual expenses; necessities, extras, and taxes/savings are all included. The college savings cost could be over or under exaggerated depending on which college the child would like to attend, if any college at all. In addition, the extras column is also overstated because many of those expenses can be cut down if a family truly has limited funds. In addition to that it needs to take into consideration that in the twenty first century many electronics such as computers and telephones are not extras but rather necessities. The charts do also not take insurance into account, especially since insurance is a major expense.
I personally found the article very interesting an informative. There were some minor flaws in the study like insurance being completely left out, but overall the study was very interesting and did have an effect on Americans today. I do, however, disagree with putting a price tag on the American dream. The American dream is not a certain amount of money but is rather the bettering of oneself from the point of birth. Meaning that if a person was born poor than they should strive to move up to say the middle class and if a person was born in the middle class they should try to move up to the upper class. Rising up in classes is also a huge issue for Americans today and it would be interesting to see a study based off of that ideology instead of the ideology that the American dream has a price tag. Nonetheless, the study overall was beneficial and pertains to American life.
The American dream is impossible to attain now because of many reasons but more so, the expenses are exceeding what the average American family earns. A normal family of four requires bare necessity expenses of $130,000; however, because of high wages, pay has now flat-lined. This makes it impossible to attain the American Dream. Because everything has raised in prices, it makes it very hard to even reach the income now because of low wages and high-priced expenses.
ReplyDeleteI think that vacations are over represented. I know of a lot of middle class people who do not go on such expense vacations. I myself go on a vacation every year, but we never go to overly expense places and if we do, it is once every five or so years. I also think that college funding should be more money because children need to have that security of going to college without having to worry about student debt.
This article makes me fear the future and what lies ahead for us as Americans. Will the dream every be attainable again? Will the future be worse, with no middle class at all? Honestly, I'm left with even more questions than I originally had and fear that the next time I heard news on this, America will only be digging a deeper hole for its grave.
According to Sam Becker, the American Dream is unattainable to the majority of Americans today. The cost of standard living for a family of four was calculated to be $130,000 per year. However, the actual median income of a family with two full-time working adults halted at $53,000, less than half of the standard cost. Families are no where near achieving a healthy and happy standard of living. This discrepancy is mainly attributed to the fact that the cost of living has skyrocketed while wages remain flat. Costs of housing, gasoline, food, and healthcare, among others, have been rising exponentially, but instead of wages doing the same, they have stayed exactly where they were. This has already stripped people of their spending power, and as time passes and the discrepancy between cost and income grows wider, the middle class will be the one to take the most destructive blow.
ReplyDeleteThe college savings portion of the study was underrepresented. College tuition these days is increasing dramatically, and it is difficult to keep up, especially with only $5,000 saved per year. For example, UConn's tuition is about $40,000 per semester for out-of-state. A couple deposits of $5,000 will hardly make a dent in this tuition. Therefore, I feel that this should be raised to at least $7,000 or $8,000, depending on a family's economic mobility. Furthermore, I feel that the entertainment and restaurant portions are over-represented. So many low-cost entertainment options have opened up, like Netflix, which costs very little. With an exception to those families who live to go to concerts or sports games, many may not spend much in this area. Furthermore, many families have taken up the routine of home-cooking meals, and thus, do not go to fancy restaurants much. The expenses in this category would be lower. I feel that each item is categorized correctly, even phone and internet. Yes, nowadays everybody has a smart phone and many people cannot seem to live without internet connection, but libraries and shops often have free wifi that is open to the public, and email is an excellent way to communicate with others.
Reading this article allowed me to open my eyes to the struggles that the majority of Americans face when it comes to money. I live in one of the richest towns in one of the riches counties in the country. I would never have thought that the average income was that low because I've never been affected by it. Nevertheless, I'm glad that I was able to gain insight on the current shape of the economy and its toll on the middle class, as it may make me and those around me better able to somehow improve it in the future.
The American dream is no longer attainable because of two reasons, wages and income flat-lining, and material cost continuing to rise. Without the average wage following the cost of food and other items many people will no longer be able to afford what they need. Things such as food have skyrocketed in price while wages haven't risen noticeably in a long time. Most American households make less than half of the 130,000 needed to live both essentially and comfortably. The average household only makes about 53,000 a year, which according to a study, isn't even enough to afford all of the essentials per year. With things like college tuition raising as well, debt may soon become another major leader as to why many Americans can no longer afford the dream.
ReplyDeleteI think by far the cost that was the most over represented in the study was apparel, in terms of healthcare and food, apparel doesn't even hold a spot. Apparel in most households is on a need-to-buy basis, and very few people actually go out of their way to by several batches of expensive clothing in one year. As for under represented, internet and phone were by far the most neglected. Internet and phone service have begun to be a necessity for all ages of children, not just teenager like it has been in the past. And with data being the most important thing for most kids, the average family will have to take out a plan that is 3 to 4 times more expensive than one with just the bare essentials. Other than that the study mostly covers all typical bases for the average household, I feel internet and phone are exactly where they should be as well. They are not a necessity to live and if a student really needs internet that badly they can just visit their local coffee shop or library.
My reaction to this article is actually pretty shocking. In my terms of living I believe I'm in a comfy spot with my family, we have most everything we could want and can even afford to spend frivolously in a few areas. I hope that when I grow up I am able to live the same if not better lifestyle than my parents have provided for me. The numbers in this article seem flawed to me though, but only in one way. If the american dream is to live comfortably and for your children to do better than you have, then wouldn't my family who lives comfortably but makes under that big 130,000 have accomplished the American dream?
The two main reasons for the American Dream becoming unattainable for the majority of Americans are that people do not have the financial power they did before and that wages and compensation have flat-lined. Regarding financial power, the cost of living has skyrocketed. For an average family of four, it costs $130,357 to be able to afford basic amenities and very little extra savings. Not only is that a lot of money, but it is out of reach for the majority of Americans. Just about every standard purchase has seen prices jump dramatically, including gas, healthcare and transportation. Regarding wages, everything has seemed to increase except for wages. All in all, the middle class is losing their money, and the middle class makes up the majority of Americans.
ReplyDeleteAfter reading the calculations done by USA Today, I believe that apparel and medical expenses have been underrepresented. This is mainly because nowadays, society puts a lot of emphasis on apparel and what they look like. It is all about the branded clothes and shoes that people focus on. Therefore, they would rather spend more money on that than the estimate the article gave. Also, medical costs have gone up extremely. Just to have insurance for children costs tens of thousands of dollars and if they start driving, it doubles because of the risk of teenage driving. Therefore, that number must be underrepresented too. Also, restaurants were underreported because people socialize over dinner or lunch, and 9/10 Americans eat at a restaurant at least once a week. On the other hand, I think a summer vacation is overrepresented because nowadays, people do not even have the money to take their families on vacation due to the lack of wage increase and financial power.
In the study, I believe that in today’s society, cable, satellite, internet, and cell phone are a necessity not a luxury. A person would be completely excluded from news and any source of information if none of the above were there. In order to keep up with today’s society, cable and cell phones and internet are a necessity. Some costs that are missing can be baby costs, or water bill These things are important to add to essentials for Americans.
My reaction to the article is subjective. Yes, I believe the American Dream has become mostly unattainable but not completely. Some people just need a little bit more education and can earn the wages to sustain them a proper life in America. Also, I think most of the calculations done for the essentials study are underrepresented because today’s society is very different and it takes into account many other driving forces such as societal pressure, familial pressure, governmental pressure and social pressures. Therefore, costs usually go up in almost all aspects because it’s always nice to have a nice car, a nice house, good clothes, a nice car, good food and summer vacations.
The American dream has been deemed unattainable because people's financial power has decreased because prices are so high for many people to afford. The second reason is because wages and benefits have flat lines while prices continue to rise. This makes it harder for people to afford things. The majority of the population is not within reach of the American dream.
ReplyDeleteI think that many of the entertainment costs can be changed, because since entertainment is not a necessity, people who might not be able to afford it can spend as little or as much as they chose on these things. I think the main costs that should be focused on should be living, taxes, and health care since these are the things that are not necessarily controlled by the people.
When I read this article it makes me sad that so many people are unable to live comfortably and afford many of these expenses. I think that this problem should be fixed so that more Americans are able to afford simple things like entertainment on top of the many other costs such as taxes and health care. People should not have to give up enjoyable things just so they can afford other expenses that they can't control.
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ReplyDeleteOne of the reasons the American Dream is unattainable to majority of Americans is that people lack the financial power they had before. USA Today has calculated that the average income to secure all basic amenities, extras and taxes and savings was about $130, 357 for an average family of two adults and children. House, food, transportation, and health insurance prices have meteorically went up. Another reason that the American Dream is unattainable is that wages and compensations have flat-lined and not increased, causing a decrease in purchasing power and therefore loss in businesses and the middle class ultimately. Despite huge productivity growth, wages only increased 5% for median worker. Most people are not even reach of income in which the median household income is only at $53, 046. The bare necessities make up about $58, 500.
Some costs that were overrepresented were apparel, entertainment, restaurants, and family summer vacation costs. For apparel, we are living in an a age of low cost clothing where high, expensive costs are only left to name brand store like Brooks Brothers. In addition, clothing costs can be restricted, and with smart shopping techniques, apparel for whole family can cost less than $2,631. Family summer vacations do not have to be expensive as $4,580 per year in which families can just take a trip to the park and have a picnic, or take a short drive to the beach. Expensive trips like Florida are not necessary since the essential of vacation is relaxation and family bonding. In addition, entertainment can be in many different forms such as $8 a month netflix, playing an outdoor activity with friends, having a family reunion and a dance party, and much more. Restaurant costs can be drastically reduced, focusing on home cooking and recipes which are healthier for family. Internet and cell phone service are categorized incorrectly and should be in the essentials, since living in a technological age, they are vitally important. Cell phones are used to communicate with jobs, friends, teachers, and businesses. Internet is important for children as well as many websites and teaching tools heavily rely on internet. One can’t go to public library every day which could increase transportation costs by a lot. The study is missing debts such as debt repayments and student loans which can be a major part of monthly costs in which student loan can be more than $33,600.
I was very surprised by this article and how an average family of four needs about $130, 357 to fulfill all basic and extra needs, and be part of the American Dream. When I see the minimum wage, I realize that the dream is impossible to reach. I am very fortunate to be part of a wealthy family that can cover vacation, entertainment, grocery, and other costs. But if two people make only about $50, 000, I wonder how they can even survive since it doesn’t even meet up the average necessities cost which is about $58, 491. It must be incredibly hard and what really horrifies me is that loans are a huge part of people’s costs. It can take decades to repay student loans and other debts. Families have to worry about the next generation and even $5000 college savings for two kids is very low since college costs are very high. Parents have to even worry about retirement. So, when needs are hard to be met, how can future costs be met.
The American Dream is unattainable for most Americans, because it costs two times what the average family income in the United States of America is. The study identifies the reasons for this as stagnating incomes and rising prices. Most people are not even within reach of the American Dream, because the median household income for the past several years was around $53,000/year, while the American Dream requires an income of over $130,000/year.
ReplyDeleteI believe the essentials category is understated, because internet and phones are a necessity in modern society. Most families also have more than one car, which more than doubles car expenses. Going off of my family's gas, electric, and lighting bills annually, the cost of utilities expense should also be $1,000 more than states under "The Essentials". The extras category should be much less, because cell phones and internet are an essential. Cable is optional, as is entertainment, vacation, and dining out. Taxes and savings could also be seen completely different when an emergencies-only savings account is added to the pile. The total should also be adjusted for debts, such as car loans, credit card expenses, student loans, mortgages, and other accounts payable.
I am surprised by this study, because the figure of the total income needed to live the American Dream should be approximately $40,000 more, when adjusted for debts and other expenses. I was also shocked by how low the average national income is in America and by how unfeasible the American Dream really is for most people.
The American Dream is no longer feasible goal because of the high standard of living that is deterring Americans from living prosperous, comfortable lives. In the United States, the average American household, with two parents and two children, needs to receive a six-figure income of $130,357 to be able to pay essential expenses, taxes, and other costs. However, in total, the average family earns $53,046, annually. This is less than half of the income needed to attain the American Dream; therefore, most people are not within reach of attaining the American Dream. The author, Sam Becker, attributes this dilemma to a high cost of living and flat wages. Because gasoline, healthcare, food, and other prices have skyrocketed, most Americans cannot afford to live comfortably. In addition, because their wages have flat-lined, individuals cannot keep up with the high costs; thus, they do not have the economic power to attain the American Dream.
ReplyDeleteI feel that, in this article, education expenses and healthcare costs were underrepresented. In today’s society, a student has to pay not only for tuition at the college, but also for room and board, textbooks, etc. These values often total up to about $30,000 to $50,000, which alone, is approximately what the average American household makes annually. Additionally, health care costs are underrepresented because in many situations, they amount to more than $9,000. With the expensive premiums and high copays alone, Americans are paying a great sum of money. What the article does not consider is that 15-20% of Americans are uninsured, and therefore, the costs for procedures and check-ups often amount to higher values. Furthermore, many insurance companies do not pay for many procedures, which can and sometimes will amount to more than $9,000. I think the author incorrectly categorized internet and phone because in today’s society, which is dominated by technology people rely on their computers and phones to help them complete work such as emailing a boss or typing an essay. The factors that are missing in this study are costs that come from caring for infants, pets, or the elderly because they play huge roles in determining how families can budget and cut costs.
The fact that the standard of living for the average American household has risen to $130,357 does not surprise me; however, the fact that most American households make less than half of the cost of living is disturbing. It is frightening how so many people cannot afford to live comfortable and free lives because they are constantly bombarded with expenses. I feel so privileged to be able to afford the basic necessities and extra expenses that most people, including me, take for granted. Moreover, in the future, if this trend of flat wages and an increase in the standard of living continues, then the American Dream will become a concept of the past.
The American Dream is not affordable to most families. USA Today states that to obtain the American Dream a family of four, two adults and two children, must make $130,357 a year while between the years 2008 and 2012 the median income of families was $53,046, which is less than half what the American Dream costs. What is causing the American Dream to become so unaffordable to so many people is that many people do not have the same financial power they used to. Also, wages are staying the same while prices for things needed to live are increasing. With these and many other factors most people are not even close to obtaining the amount of money needed for the American Dream.
ReplyDeleteThe cost of the American Dream predicted by USA Today was predicted based on the price of essential things needed to live a normal life. Telephone and internet costs were not considered an essential in this study, but considered an extra. This was wrongly categorized and should be considered an essential. Many people require internet to do their job and make money and many schools use technology regularly. Most homework is done on the computer, meaning a computer and internet are required to get an education and therefore are essential to living not only the American Dream, but living in America in general.
I thought it was very shocking to read this article because it shows that the American Dream is not even close to what most families can afford. The wages of workers should increase and everyone should have the opportunity to live the American Dream. The median salary of people should be equivalent to the cost of the American Dream, meaning that if a person attempts to get a decent paying job, they can achieve the American Dream. This article proves that the American Dream is becoming unattainable and that America is no longer the land of equal oppurntunity.
There are two main reason why the American Dream has become unattainable for most Americans: increased inflation and stagnant wages. Everything from basic necessities to luxury items have been dramatically increasing in price over the course of the last fifteen years. People are paying more than ever for things like food, gasoline, healthcare, and transportation. This wouldn’t be such a big issue,though, if wages increased to meet inflation. However, this is not the case. It is arguable that people are even being paid less because their wages are not being raised to meet with increased productivity and inflation. There is no incentive to work harder if that hard work is not being rewarded. If the American Dream dies it will take the rest of america with it.
ReplyDeleteThe problem with this study of the American Dream is that it is an average of numbers that vary dramatically. For example, compared to New Jersey, these figures aren’t even half of the actual ones that it would take to support a family of four, while in a state like Arkansas, they are twice the actual values. I feel that some of the Extra’s cost were overrepresented such as family summer vacation, restaurants, and entertainment while the Essentials were underrepresented such as medical, educational, and utility expenses. With the rising cost of living savings should be adjusted to meet inflation as well. Furthermore, in the technology based world of today, cable, satelite, internet, and phone costs should be filed under the essentials category. Overall, I feel that this study covers all of the major expenses. If I were to add a category, however, I think pet expenses should be added to Extras because of the overwhelming number of homes that keep pets.
I am not surprised by the conclusion of this study. The lack of economic improvement as well as the widening income inequality since the recession of 2008 not only has stagnated the majority of wages country-wide but has also driven up the prices of nearly everything. If a nation cannot deliver on its promises of prosperity then there is no incentive for its people to continue working. The strength of a country’s middle class is the strength of its entire economy. People should be rewarded with financial security if they work hard. If this vicious cycle does not turn around soon the American Dream will surely die, taking with it the rest.
The American Dream is unattainable to the majority of Americans is because people do not have the same financial power that they used to. The average cost for an American family of 4 to attain the American dream is $130,357! That is an outstanding cost for a family each year! It makes it so difficult to achieve with the wages not rising and the cost of living increasing all the time. In addition, people are having trouble keeping up with their expensive lifestyles with the income that they make. According to the study, most people are not even within reach of the income required to achieve the American Dream. The median household income between 2008 and 2012 was $53,046! That is not even 50% of what is required to achieve the American Dream!
ReplyDeleteI believe that the article underrepresented one time costs for Americans, like buying a home, or a car. If it costs $130,000 per year to achieve the American Dream, it will probably cost even more to afford a house and a car. In our day and age, some of the extra costs are actually necessities, like the Internet and cell phones. In my opinion, I think that the groceries expenses were slightly overrepresented. A family could get away spending even half of that per year. However, it is understandable that the median spent on groceries is so much. Groceries do not just include food, but any item that needs to be replenished. I feel that the study pretty much covered all of the essential costs of the average family.
This article caught me a little off guard. 130,000 to support the average family is a lot of money. Most families who have 2 adults working full-time have trouble making that much. However, this make me realize how unfair our economic system is, because people can work just as hard as another, and make 10 times what the other person makes. It seems like the luck of the draw, that you have to pick the right field and hope that your salary can support your family. Otherwise, your screwed. In addition, this article made me realize how much the essentials actually cost per year. $58,491 is a lot of money! Without looking at the breakdown, I would just assume that it would cost around $10,000! This article really points out how difficult and almost impossible it is to achieve the American Dream.
The study identifies as extras and taxes being the majority of the bill for the american dream. Most american middle class members are well below this number by an average of 30,000 annually. This makes the American dream extremely hard to achieve for over half of the middle class in America. I believe that the 401k is over represented because it is going by the maximum amount rather than by the median income from 401k. I also believe that taxes are underrepresented because there are allot of piled up taxes from credit cards and debt piling up for many middle class Americans. I do not believe that anything is misrepresented and they seem to all be in their correct placement. I think the study covered all of the main payments utilized by middle class Americans. I feel like this article is largely a wake up call to many Americans and officials that the American dream is largely unobtainable and something needs to be done about the United States economy before this issue gets even worse.
ReplyDeleteThe rift between the American Dream and the masses has been gradually increasing. Any attempts at trying to bridge this rift is all but futile (failed businesses, risky investments, job loss, etc.). Only a few manage to find there way across while most of us remain on the other side finding it harder every year to get to the other side. The cause for this rift is founded upon two reasons. First and foremost, the average American is finding his hard-earned dollar being worth less year after year. The average American has already tried twisting and stretching his dollar for its most value but there exists a certain limit to even that. Secondly, with the stagnation of the American Dollar,the average American finds it much harder to live up to the "American Standards." This is due to the fact that the cost of living is through the roof and the price of all products has been steadily increasing. The study conducted by USA Today provides a good outlook on the price of the "American Dream." With the value in six-figures, most Americans are unable to break the barrier between the tens of thousands and the hundreds of thousands. The cable, internet, and phone prices are greatly misrepresented at least according to the standards in our area. With most people's bills averaging around $100 a month, the exact figure would be $1200. Some costs could be cut out of this for example having a cell phone and no home phone would help. Furthermore, Google offers a free Google Voice number active within the U.S, so that would decimate the phone bill. All TV shows are online so TV isn't required. The only thing that is a must in this day and age would be internet. Going out to restaurants maybe twice a month would be under a thousand because the average restaurant bill for a family of four is $40. As far as the rest of the expenses go, they seem pretty accurate. The USA Today provides a good ballpark estimate of the cost of living in Modern America. I feel pretty discouraged at the fact that this is what the American Standard has come to. Prices grossly over their actual market value makes for one tough situation for the average Joe.
ReplyDeleteThe American dream is no longer attainable to most Americans. This is because living expenses are too high and worker wages have not increased. Between 1979 and 2012, the average worker’s wage only increased 5%. Meanwhile, living expenses have increased drastically. Most people are not even within reach of what is required to live in according to the study. The average American needs $130,357 per year, but the average household income is only $53,046.
ReplyDeleteA lot of these costs were misrepresented in this study. In today’s society, internet and phone service is more of a necessity than a luxury. These are needed for almost any job that someone works at because employers need a way to contact their workers. They are not going to want to hire someone who is difficult to get in contact with. I also do not believe that family summer vacations need to cost nearly as much as they did in the study. The study said that the average family summer vacation should cost $4,580. It is not necessary to go on a vacation that costs that much. To go down the shore for a week in the summer, can cost the average family less than $2,000.
It’s sad that the American dream is no longer attainable, and it’s scary that consumer debt is so high. Something needs to be done about this problem. I believe that we need to take a different approach at solving this problem. We need to start manufacturing more items within the United States and stop relying on other countries’ imports. If we could export items to other countries, that would improve the growth of the economy as a whole. The other solutions like increasing minimum wage and including workers in worker’s unions is only going to hurt businesses.
The American Dream, once an attainable goal has become a lofty dream. Most households with two working adults still only earn around $50,000 annually, whereas people would need an annual income of $130,000 to have the “American Dream”. The fact is simple; the American Dream comes at a cost that most cannot afford. The American Dream costs more than double what an average household makes. This is because the cost of living has increased while wages have leveled out.
ReplyDeleteI feel that the values for the cost of living are accurately represented. One overrepresented aspect was extra cost of living considering one doesn’t necessarily need to spend so much on restaurants, entertainment, and vacations. However, internet is incorrectly categorized as an extra because in today’s day and age, a people need the internet to do a majority of their daily jobs.
I was shocked to realize that most families aren’t even close to having the quality of living needed to achieve this “American Dream” so many want. I’m not exposed to it as much, being from this area of the country. I didn’t realize all the costs that it took to have a comfortable lifestyle. I thought most families lived comfortably while very few families had more than what they needed, I hadn’t realized how hard it was to actually live a comfortable life. As I saw all the different costs of living in the charts, however, I saw how the American Dream is actually unattainable for many people.
Based on the report by USA Today, the American Dream no longer can be achieved by the average middle to lower class American. According to the report, the average American household (two parents and two children) must achieve a six figure income of $130,357. However, an average family in the United States only achieves an income of $53,046 annually; thus not attaining the American Dream. The author of article states that the skyrocketing cost of living combined with the flat wages are the reasons why the American Dream is not attainable.
ReplyDeleteIn my opinion, I feel that the cost of education and healthcare were underrepresented in the article. Both of these things are major contributors to the debt of an individual for many reasons. First of all, the cost of a college education has dramatically increased due to the increased cost of tuition, books, housing, etc. However, the quality of the education has not increased compared to a certain time before when the overall cost of education was less. On the other hand, the surging costs in healthcare are contributed the practice of defensive medicine, higher prices of medical services, use of new technologies and treatments without considering effectiveness, and paying for volume over value. Because of these factors, many people cannot afford the healthcare services provided by hospitals or other healthcare facilities even if they have insurance. A category of payment that was not categorized properly by the author was the cost of technology, because our society today relies on technology in order to complete certain tasks, such as paying bills or writing emails. Lastly, a category of payment that was not mentioned at all by the author is childcare, which is very important for a situation in which both parents are working.
Overall, I found this article very informative and helpful because it educated me on the numerical value needed in order to achieve the American Dream. Also, the article gave me a realistic view of how far away a majority of American citizens are from achieving the American Dream. An example of this would be that most United States citizens do not make half of the required amount needed to achieve the American Dream ($53,046). In conclusion, if our country were to follow the path that it is going in now, then the American Dream will not exist anymore and the true purpose would be to survive.
The American Dream has become virtually unattainable to the majority of Americans, limiting the economic growth of society. According to a study conducted by USA Today, the average cost of the American dream is around $130,00 which is an amount far out-of-reach for many Americans. As author of this article, Sam Becker, points out, the acquisition of the American Dream can be attributed to the increased costs of living. as well as the stagnation of wages and job opportunities. In this day and age, the various costs towards basic needs have quickly been rising; however, salaries still remain dormant, which does not compensate for the high costs of living. The middle class has been placed in a compromising position, as it is unable to stimulate the economy or provide basic, essential products. Unfortunately, with the various costs that have accumulated, such as college tuition, food, clothing, high taxes, it seems as though the American Dream is far from reach for the majority of Americans.
ReplyDeleteIn this study, a variety of products and essentials are categorized by importance, all of these items contributing to the average cost of the American Dream, $130,000. Out of these categories, I believe that the educational expenses were slightly underrepresented, along with the debt that is acquired. Currently, education is a flourishing aspect of society, and the prices are quickly rising. Along with the money paid towards schooling, additional money is made through the purchases of notebooks, pencils, calculators, etc. On the other hand, I believe that the category of public transportation was completely eliminated from this chart, even though it is quite essential and costly to the lives of many Americans. The costs of transportation should be included in this chart as an essential, seeing as the cost of a car is quite expensive, along with the prices of gas to fuel cars on a regular basis.
Overall, I felt as though this study was quite conducive, though not entirely surprising. Although my parents make a decent amount of money, I've seen the struggles they may sometimes undergo, thinking of ways to provide the basic essentials to the family. It's no doubt that the cost of living has rapidly increased, but these rising costs have completely altered the ultimate goal of the American dream.
The American Dream is unattainable for most people because they no longer have the financial power they had before. The cost of living has increased, such as food prices, transportation and healthcare costs increasing dramatically, and wages and compensation have stagnated. Due to flat wages and job loss, and increase of the coast of living the middle class has been unable to prosper. The study states that in order for a family of four, 2 parents and 2 kids, the income of the household has to be $130,357 per year. This income provides for comfortable living. Most people are not even close to attaining this income. The average income has been $53,064 per year. The average income is not even half the income of the American Dream.
ReplyDeleteCosts in the study that seem to be over presented was the cost of a family summer vacation. Most families take a trip to the beach for a week or two during the summer. I don't think it costs over four thousand dollars for a trip like this, even two trips like this, especially if they are driving. The study even goes on to say that that number could be reduced. I think the 401K retirement savings is high as well. If people are not making enough money to support their family, according the American Dream, they are most likely not going to depositing the maximum amount. I would consider internet and phone service a necessity. Our generation has become very dependent on technology. We use it to communicate efficiently in every aspect of our lives. Work and school depends on the internet in order to share information with other students and/or colleges, and to complete homework or turn in assignments. For phone service, if there is an accident, it is extremely helpful in order to call for help in an emergency. Also, businesses may need workers to participate in conference calls if they work from home. Finally, I think that the money set aside for college should be increase. The cost of higher education has already become unaffordable for many families and it continues to increase. I do not think that the study missed any costs though. I think all aspects of life were considered especially because they did a miscellaneous column, which could include sports, band, or any other extracurricular activity for children.
I am shocked by this study. I realized that many people did not live comfortable lives but I thought in order to do so would be easier than the article claims. I realized that prices had increased but I did not know that the wages were stagnating. To me this is scary. The middle class contains a large amount of people and so many of these people are effected. The middle class supports the economy and if they are unable to keep up with the increased cost of living then we are all in trouble. The middle class works hard for the wages they earn yet the wages are still not enough to support a life they deserve.
The American Dream has become virtually unattainable to the majority of Americans, limiting the economic growth of society. According to a study conducted by USA Today, the average cost of the American dream is around $130,00 which is an amount far out-of-reach for many Americans. As author of this article, Sam Becker, points out, the acquisition of the American Dream can be attributed to the increased costs of living. as well as the stagnation of wages and job opportunities. In this day and age, the various costs towards basic needs have quickly been rising; however, salaries still remain dormant, which does not compensate for the high costs of living. The middle class has been placed in a compromising position, as it is unable to stimulate the economy or provide basic, essential products. Unfortunately, with the various costs that have accumulated, such as college tuition, food, clothing, high taxes, it seems as though the American Dream is far from reach for the majority of Americans.
ReplyDeleteIn this study, a variety of products and essentials are categorized by importance, all of these items contributing to the average cost of the American Dream, $130,000. Out of these categories, I believe that the educational expenses were slightly underrepresented, along with the debt that is acquired. Currently, education is a flourishing aspect of society, and the prices are quickly rising. Along with the money paid towards schooling, additional money is made through the purchases of notebooks, pencils, calculators, etc. On the other hand, I believe that the category of public transportation was completely eliminated from this chart, even though it is quite essential and costly to the lives of many Americans. The costs of transportation should be included in this chart as an essential, seeing as the cost of a car is quite expensive, along with the prices of gas to fuel cars on a regular basis.
Overall, I felt as though this study was quite conducive, though not entirely surprising. Although my parents make a decent amount of money, I've seen the struggles they may sometimes undergo, thinking of ways to provide the basic essentials to the family. It's no doubt that the cost of living has rapidly increased, but these rising costs have completely altered the ultimate goal of the American dream.
The idea of the America Dream is slowly becoming more and more unattainable. This article revealed that this is becomes the cost pf living has been continuously increasing while wages have stayed the same. Looking at the different categories it is nearly impossible to live comfortably when the average income is about $53,000 a year and the cost of necessities alone is $58,000. In the Northeast we are used to a higher standard of living than most other areas of the country. With that being said our property costs are much higher than the average listed but our average income may also be higher. Education costs vary a lot; although, the cost of college can be much higher than that listed in the article. I also agree with the author that internet and cable are more necessities than extras. It is hard to do work, both schoolwork and otherwise, without being connected to the internet and having devices to do that. This article is not only shocking but disheartening. Knowing that families have two working parents and are still not living comfortably is shocking since they should be able to make it by without worry. It is also mentioned that part of the American Dream is to secure a future for children and younger generations. Being that younger generation is stressful knowing that there is not a lot of room for growth in the current state of the economy, with a high cost of living and low wages.
ReplyDeleteThe American Dream is now unattainable to the majority of Americans simply because it is unaffordable. By definition, the American Dream is the equality of opportunity within America. With the value of the once thought priceless theory at about $130,357, there is no doubt that the dream is nearly impossible to come by for a majority of America. Even with two parents working full-time, the medium household income from 2008-2012 was only about $53,000. Put into perspective, the American dream is about two and a half times the amount a typical middle class American family can afford. The two factors contributing to this large cost are the cost of living and the flat-lining wages and compensations. Home, healthcare, food, transportation, and gasoline have all seen dramatic price increases over the past fifteen years. Since the late 1970s, most workers have only seen about a 5% wage increase, which is not enough to compete with the increasing prices of living in America. Most middle and lower class families cannot afford this dream presented by the study, and it looks almost as though they never will be able to.
ReplyDeleteDespite the fact that healthcare costs in America are rising drastically, it appears that the USA Today study overrepresent medical expenses per year. In my family of five, we spend no more than $6,000 per year on medical expenses, even with the incidence of a few accidents. Two factors that appear to be underrepresented are education for children and apparel. Based upon my own view of how often people by new clothes compared to me, I would say that on average, a normal American citizen, whether male, child or female, will spend around $800 on apparel each year. This would mean a family of four people could spend somewhere around $3,600 on apparel yearly. Because the education is not specified as higher level or elementary education, it is hard to tell if the $4,000 is accurate. If a family pays for a child to go through college and graduate with a degree, the price listed is rather low per year for two children especially. This number should be, at minimum, $10,000 per child. If this is for just elementary education, this number is probably, overrepresented because school supplies do not normally cost more than about $1,500 per year. It should be noted, however, most of my facts are based upon what I observe in my community and how my family operates, so I may be setting unreal expectations.
As stated in the question, the internet, cable, and cell phone bill should, in today’s world, be put into the necessities category of expenses. School, work, and most collaborative activities now require the Internet to function. However, one important cost factor left out in the calculations for the American Dream is the risk of accidents. Accidents happen to most families, either yearly or at least every other year, whether it be medical, home-wise, etc. This factor should be at least another $2-3,000 per year. Also, as the article mentioned, debt, which is a major cost, is not factored into the equation.
Even though the numbers may be higher than I expected, the results of this study do not really surprise me. America is getting progressively more expensive and, as the article stated, wages are remaining constant. With the increase in one and the consistency in the other, there is thought to be some form of inequality. Going back to the definition of the American dream, equality of opportunity, this study does spark some rage inside of me. How is a lower-middle class family with an income of around $50,000 supposed to compete with a $1 million businessman income? How is someone of the lower class able to further him or herself to a higher level job if they do not have the access to the right education, simply because of their family income? I personally believe that social mobility is a large factor in why the American Dream is so unaffordable to most of America. This study posts the truth of America’s expenses, and how unrealistic the so proudly exclaimed American Dream is.
The American Dream is dead, and America is the murderer. The American Dream has been steadily climbing both in price and rarity as it becomes less and less likely to be actualized by most people in the US. As wages have stayed almost completely flat, the price of this material philosophy has skyrocketed to a sickening $130,000 annually to provide for two kids and a spouse, giving them an inverse correlation and pushing chances further every year. Education, food, healthcare, and other necessities to get along in the modern world have realized thus, and have brought their prices much higher than necessary.
ReplyDeleteWhile this study is fantastically put together and well designed, there seem to be some slight discrepancies. First off, who pays upwards of $2500 a year on clothes? No one buys clothes that often, My father has a tendency to dress for necessity and I find me and my brothers have a proclivity towards thrifty shopping. That such expense should be lowered. So should Vacations and Restaurants, as most families do not spend such exorbitant amounts if they are smart with their spending, though grocery should probably be higher if restaurants is to be lower. College expenses are usually much higher as well, as I imagine most wish to help their kids most, if not entirely, through college. Finally, I think to put telecommunications under a extra, but cars under necessity, is odd. There are plenty of people who live through biking and public transit, but cannot be detached from the internet, as it and telephones are now a necessity to staying connected and reachable.
I wish I could say this article surprised me but that would be a lie. This is nothing new, the American Dollar does not hold its same respect, America is living a shadow of itself, a late empire to a glorious earlier republic. America needs a bit of an overhaul, but we're too busy trying to be everywhere else to realize where we need to be most is at home. A home is but a house without a hearth, and the fire is growing thin, so America needs to realize such and come home to stoke the flames, and get the fire roaring again.
1. The article cites two major reasons for the difficulty of achieving the “American Dream” for the average citizen. The biggest one, is said to be the fact prices for just about everything in the nation has skyrocketed. The cost of living has increased dramatically, and with that comes the other major issue, which is the fact that wages have essentially flattened out. With prices going up and income staying the same, the majority of the American population has lost its financial flexibility. Many are now forced to live paycheck-to-paycheck, which obviously not part of the “American Dream”. And with no financial flexibility for consumers, companies lose income, layoffs ensue and the vicious cycle continues.
ReplyDelete2. I think most costs in this study are estimated and categorized accordingly. However there are a couple exceptions. I believe that in today’s world, cell phone and internet service should be considered necessities. In most industries, cell phone (more often smartphone) use is required. Internet service will also be helpful in these industries. Today, most schools also require internet use, as most textbooks and other assignments will be found online and numerous research projects will be assigned. Aside from that, I feel the cost of college was underestimated in the study. While parents may only have to save $5,000 for two kids (which may still be low), they will still have to take on a significant amount in loans with the growing cost of college.
3. I was shocked to see how much prices have increased without any increase in pay for the average citizen. This is not an issue that can be solved by increasing the minimum wage because that will increase the cost of living just as much as it is increases wages. I’m not quite sure how it can be solved but the government definitely needs to make some kind of adjustment.
According to the article, the American Dream is unattainable for most americans because most people just don't have the finances do so. The price that the article stated is needed to attain the American Dream was 130,000 dollars. Most americans do not have this amount for two reasons. The first reason is that the cost of living and prices have been rising at a steady rate since the 1970's and have increased by 75% leading many people to spend more on consumer products and the essentials for living. The other reason is that wages and pay has flatlined since the 1970's, which makes it nearly impossible to meet the needs of the American Dream because of the increase in the cost of living without any nominal increase in wages that should have followed this increase in living costs. Most people are not in reach of the price of the American Dream.
ReplyDeleteThe Costs that were underrepresented in the article were the costs for education. Most students have tutors or people that help them with their studies. The article said that the price for education was 4,000 dollars per year. This price is underrepresented because most students pay for classes for SAT prep and extra help for class. The price should be doubled to account for prices such as tutoring and extra help. Prices that are misrepresented are internet and phone prices. They are misrepresented because they are necessities in world of technology and many of the homework and projects that are assigned at school require a computer with internet access and a working phone. I dont think the article was missing any prices.
I was unsurprised by this article because the prices of living the American Dream have been rising for a long period of time. I was surprised by how much it did cost to meet the American Dream however. I have always assumed that it would take around 80,000 to meet the American Dream but was surprised when I found the price to be around 130,000.
The author Sam Becker believes there are two main reasons that the American Dream is Unattainable to the middle class, the cost of living increasing and wages flat lining. The prices of homes, gas, food, healthcare, and transportation have all risen. Meanwhile the median salary has increased by only 5% despite productivity rising by 75% According to the research a family of four needs about a $130,000 salary whilst the average is around $55,000 making the American Dream unattainable. Both of these problems are most likely due in large part to the growing wealth gap in America.
ReplyDeleteNow that I am done regurgitating a bunch of "facts" I can offer my own opinion on this study and article. One I feel must be acknowledged is that for most people to achieve the American dream it takes a lot of hard work and sacrifice. Sacrifice. Maybe before having kids one should save up some money for education, by a car, and have other savings for problems that occur. But how could one possibly do this? Sacrifice vacation, live in a crappy place, don't go out to eat often, be frugal with "entertainment". My family doesn't go on vacation or have cable TV, but at the same time my parents are paying for my college. Once a family has done this saving then should a family have kids if they want to achieve the American dream. I also feel the article compares apples to oranges. It speaks of the median income and compares it to all costs that one could have if they are achieving the American dream. The dream! Key word being dream This is what is to be achieved not just given to anyone with an average salary. The American dream is supposed to an ideal life. Maybe this is subjective but I feel one must be above average to achieve this dream. They have to work harder sacrifice more.
Overall I didn't enjoy this article. I found it misleading and misrepresentative of the economics of income. I didn't provide any argument for any more "conservative" arguments, based most of it's article off one study, and other anecdotal facts were just outright bogus (Ever wonder why so many retail stores and restaurants closed over the past five years? definitely not the recession or the fact those industries are high risk so many open and close). I honestly wonder if this we will every respond to an article that isn't so blue in this class.
According to the article, the American Dream has become unattainable due to two factors. The first is that families just do not have the financial power like they did in the past. The cost of living has skyrocketed in the past decade or two where the price of just standard assets has dramatically increased. The second factor is that wages and compensation have flat-lined. Wages haven't become higher to keep up with the soaring prices of everything today, causing the decrease of purchasing power. This has forced many restaurants and stores to close down because the middle class simply can't afford them anymore. Most people are not within reach of the income required to live the American Dream. In order to afford the ideal way of living, families must earn a total income of about $130,000. However, the median household income shows that families only receive about $53,000, even with both parents working.
ReplyDeleteI believe education was an underrepresented cost in the study and should have been listed as one of the main pricing points. Even with public schooling, parents have to pay hundreds of thousands of dollars just so their children's learning is adequate. Money takes account for school supplies like notebooks, calculators, backpacks, writing utensils, while parents also have to consider paying for materials used in projects. Some extracurricular activities even include health physicals and check ups for sports or entrance payment fees to get into clubs like key club and NHS. Not just that, but some parents may have to worry about private schooling or tutoring as well as higher education afterwards including colleges and universities. I found that everything, for most part, was categorized correctly with the exception of internet and phone services. I believe that those services should not be considered as luxuries but as necessities, instead, especially with the internet. It is almost impossible to live in this day and age without some sort of technology. Many work places and schools require access to online resources as well as constant contact and updates through mobile devices. Unless someone is living as a hermit hundreds of miles away from civilization, internet and phones are definitely needed. A missing cost from the study was household pets. Animals require a lot of care and attention, which adds up to a totally new area of costs.
I was not surprised when I read this study. I have already seen other articles like this and have had discussions about this issue. This subject is so common and talked about, yet what makes me mad is that no one seems to do anything about it. This topic deserves so much more attention and need for change than it has right now. Financial struggles are so difficult to get away from, a person would have to come from an already high income family or have an extremely good work ethic while living in his/her workplace in order to avoid them. I worry about the future and whether there will be any solution to all these problems or not. It's become really stressful thinking about the future and all these issues I'll eventually have to face.
The American Dream, which people have sought after since the 1930's, has been declared unachievable for the majority of citizens. The first factor that the article notes as contributing to this unattainability is the lacking financial power of the middle class. In the past ten to fifteen years, the cost of living has drastically increased. All standard purchases, such as food, gasoline, and transportation, have had large pricing increases. The second factor is that wages have become stagnant. While productivity has grown remarkably since 1979, increases in wages were nearly nonexistent.The combination of these two factors results in a shrinking middle class that cannot afford the American Dream. According to the study performed, a family of four would require an income of approximately $130,000 to reach such standards. Research shows that most families are nowhere near this amount, as the median household income is $53,000.
ReplyDeleteOverall, I think the article appropriately represents the costs of living. However, I think that in modern times, cell phones and Internet connection are a necessity rather than just an extra. Many jobs require that workers keep in touch with clients and managers through emails or phone calls, neither of which can maintain a constant connection to the employer if the employee does not have access to such utilities. The article argues that public libraries offer free Internet, but checking emails once or twice a day on a library computer is undoubtedly ineffective in modern times when compared to the instant communication that can be supplied through a cell phone. Additionally, I believe the article understated college savings requirements. If a family hopes of sending their children to a well-known college, they will clearly need to save more than $5,000 a year for two children in order to save themselves from massive student loans. This study overlooked the costs of various types of insurance, such as home and automobile, which could add up to a lot depending on what companies and plans the family picks.
I think that this article spreads light on one of the harsher realities of this century. It is depressing to think that so many Americans are chasing a dream which is simply unattainable for them due to financial reasons that are out of their control. I think this article helps to point out the flaws in the American system. If corrections were made, such as raising wages or lowering the prices of necessities for living, then people would actually be able to attain their ideal status in life. Therefore, this article exposed an upsetting and shocking truth: if American wages and prices are not changed, the American Dream may soon cease to exist.
The American Dream is unattainable to the majority of Americans because of eroding wages and increasing costs. According to the EPI, there has been an inadequate wage growth since 1979. The median worker saw a wage growth of 5.0 percent between 1979 and 2012. However, this growth is insignificant when contrasted with the escalating costs of living. For a family of two adults and two children to live the American Dream, USA Today predicts costs to be $130,357. This accounts for bare necessities, extras, taxes, and savings. Unfortunately, most people are not within reach of the income required. The median household income, reported by the US Census Bureau, was $53, 046 per year, which is less than half of what USA Today calculated. Even with two parents working full time, the American Dream is not affordable.
ReplyDeleteI think that education costs are underrepresented. The study did take into account $5000 to save up for college, but what if the student is in college? Students often take out loans, but they still have to pay a certain amount of money for tuition and dorms. Living outside of the home is a lot more expensive than it first seems. Because of the lack of space, many college students are forced to move off campus during their junior and senior years. Parents will then help out in paying for apartment rent. (Room and board (on campus) is probably cheaper than off-campus housing with scholarships and loans taken into account.) If a student is in college, $5000 will not be adequate.
I think that restaurants, entertainment, and family summer vacation expenses are highly debatable. These types of expenses family greatly per family. I think that although the restaurant expense a bit too much, that money would end up going into more miscellaneous costs (gym memberships, sports… etc.). I think miscellaneous costs should be greater than $2000 because nowadays it takes $50 to get a decent birthday present for someone. There are a trillion little pocket expenses that people make and they can add up over a year, especially for a family of four.
I agree with the article in that the cable, satellite, internet and cell phone costs may be more suitable in the bare essentials category. The internet is required for use by everyone in this society. As a student, I need the internet in order to do homework assignments. The majority of employers require workers to be connected in some way when at home or out of the workplace. Additionally, many people have smartphones. Data plans cost anywhere from $50-$150, depending on how much cellular usage you require. On the flip side, people may not use cable television as much anymore because of the popularity of resources like Netflix.
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My reaction to this article is a subdued alarm. Growing up in a time when people are constantly speaking of inflation, costs of living, taxes, and wage gaps, I knew that the average American (even with a full-time job) did not have enough money to live the American Dream. In spite of the constant chatter of financial collapse, reading and taking in all the data raised a red flag in my mind. How are financial situations going to be when people my age head to college and then look for jobs? These studies make me especially uneasy about the fate of the next generation.
The median household in America earns $53,000 dollars per year. How much does it take to escape to the American dream? Over double that. At $132,000, the price of reaching the American dream is out of reach for the vast majority of United States citizens. Even in households with two working parents, this sum is insurmountable. Partially to blame is the stagnation of wages in the past 30 years. Consumer buying power has gone down despite productivity going through the roof. Wages have to increase or else the under representation of the lower and middle classes will exclude them from the American Dream. It also does not help that prices for daily expenses are increasing as well. The cost of living itself has gone up with the prices of gasoline, food, healthcare, and transportation following suit. As wages stay the same, the cost of the American Dream goes up each year.
ReplyDeleteI feel that the cost of internet, phone, and television is over represented. There are a number of available plans that can bundle the three together to lower the cost to under $200 a month. Even further, pre-paid phones offer a very viable alternative to locked in contracts which will also lower prices. I would however put phone and internet in the essentials category. American society weighs heavily on the ability of one to be available in an instant. Phone does not mean iPhone, it simply means something to be in contact with others. Internet is essential because of how useful and integrated it is in the way we live. If you asked someone how to live without internet it would be difficult. I also feel that the cost of restaurants was overrepresented. At $3,662 dollars a year, around $70 a week, a family could eat out twice a week. I personally don’t see merit in going to a restaurant more than once a week, cutting this category in half. The only missing costs would extracurricular activities. The cost of karate for example can reach $100 dollars per month. Some sports clubs require membership fees and also require equipment. In the modern field, colleges are looking for extracurricular activities, increasing their importance.
I am not personally surprised by this article. It does however introduce some cynicism into us students, the next working class. A common theme in the article that I do agree with is that the goal of the parent is to try and ensure that the kids end up better of then they do. I think therein lies the hope for upward mobility in economics. Once a parent is in his or her 30’s, he or she cannot go back to school easily. Higher education becomes difficult. They can, however, focus on the education of their children and make it so that they do get higher education to kick start themselves. The hope then lies in believing that the cost of living won’t out grow even that.
The american dream is unattainable to the majority of Americans because of two major reasons, increasing prices and flat lined wages. According to the study the first reason that the american dream is unattainable is because of increasing prices. They say that just about every purchase has gone up over the past 30 years including gas, groceries, and healthcare. The second major reason that it is now unattainable is because is because wage compensation had flat lined. Wages have not been going up over the past 30 years and other compensation has not made up for it. These two factors are also resulting in the closing of small businesses, which puts some people in an even worse place.
ReplyDeleteOne cost that I think is underrepresented is the cost of saving for college. They estimated the cost to be $5,000 a year for two kids. This number seems low to me because the average college tuition is around $40,000 a year. Also, this seems low because by the time the kids actually get to college, the tuition would most likely be much higher. I also think that internet and phone services should have been considered a necessity. In this modern day and age, internet has become a basis of our society. Without an internet connection, you would be significantly cut off from the rest of the world. This also holds true for phone services.
I am completely unsurprised by this article. The american dream is something that has always been fantasized about, but not usually obtained. It has always been a thing that you hear the idea of, but never actually seen it. It has always been made out to be possible, but barely. This article just puts a number to the idea and proves that it is something that most people cannot actually obtain.
The American Dream has become increasingly unattainable for the middle class. The prices of just about everything have began increasing as people's wages decrease. This is a double-hit for the middle class. The American Dream is equivalent to $130,000. The majority of the middle class is struggling to make even half of that. A prime example of raising prices is college expenses. These have sky-rocketed recently leaving students and parents with tremendous amounts of loans and debt. Clearly, with this kind of debt, it makes it extremely hard to attain the American Dream. Other factors include taxes, housing and cars.
ReplyDeleteI believe the medical expenses may have been underrepresented. My parents even thought that was low. A family can typically anticipate a couple hospital visits per year. Each visit can cost thousands of dollars, therefore I believe this is an underrepresented factor. I also believe a few items may be missing from the extra cost. I believe that area would cost much more than $17,000 per year.
The reaction I had to this article was that it is very sad and provides a dark future. As a high schooler and nearly an adult, these statistics scared me because I feel like we will have to battle to get a good job in the future. This honestly frustrates me greatly because I feel like America could make things much more simple if they wanted to, but they don't. I think I had a sad and hopeless reaction because I'm so close to becoming an adult and its honest frightening to hear this.
The thought of the American dream is prized by so United States citizens, but according to Sam Becker, this dream is an unattainable mirage. Due to the increasing prices and stagnant wages, people can no longer afford it. With the average American household pulling in a mere $53,046 per year, the American dream costs more than twice that. It now costs $130,357 to reach all the criteria to be living the “dream.”
ReplyDeleteFor the most part I think all the prices were pretty well represented but there were a few that I think were a little off. Today, if you want to dress with the standards of the American Dream it’s going to cost a little more than $2,631 for a family of four. Also, education costs more than $2,000 a year. I, for one, know I will be paying for my own college education, but many parents pay for that for their children. This is a huge price that many would have to add to their total.
It was very sad to hear how much one would have to make to reach the goal of the American Dream, but it’s okay. The American Dream has changed and people can be happy without it. Sometimes the amount of money does not change how happy one is and although one’s life might not be the dream of the average American, as long as it’s your dream, you’ll be okay.
The American Dream is unattainable to the majority of Americans because it costs two times what the average family income makes in the United States. The two factors that the study identifies as being responsible for this is rising prices and stagnating incomes. According to the study, most people are not within reach of the income required to attain the American Dream. While today's average family income is about $53,000 a year, to attain the American Dream, a family's income would have to be a surprising $130,000.
ReplyDeleteThe costs in the study that I thought were underrepresented are the apparel in today's society. By itself, shoes can range from being $5 flip flops to being $300 boots. On top of that, today's society judges anyone who isn't wearing the latest outfit or have the top name brand clothing. From experience, I have had to go on shopping sprees at least once every three months, each time spending about $300. My favorite jeans have become a surprising $50 for a single pair. Another problem for people is the amount of money that has to be spent on athletic apparel. For swimming, my parents have spent about $300 on my team bathing suit, which is only used during meets. They also have to pay for practice suits, caps, and goggles. Now a days, all of this is so overpriced it is almost impossible to keep up. I believe that this generation uses internet and phone service as more of a necessity than a luxury. This is because everything is put online now. Teachers post the assignments and due dates on their websites for us to look at. We also use our phones to check our emails and to get notifications about what is going on for a sport and if practices/games are rained out. I do not believe that there is a huge cost missing from the study that is important enough.
Honestly, I wasn't surprising about all the expenses, but more the fact that the American Dream is so far away from what we are receiving now. I expected that it was easy for middle class to achieve the American Dream. I guess you don't realized that much our parents make to be living the life we live. I'm always spending money, but never earning it. It's hard to see what is being brought to the table, when you aren't the one working hard to receive the paycheck.
The American Dream is unattainable to the majority of Americans because prices have gone up, but wages have stayed the same. Home, gasoline, food, healthcare, and transportation – all of the essentials – have risen in price over the last ten or fifteen years. This would be fine if wages had gone up in the same percentage, but they have not. Wages have stayed the same, so retail stores and restaurants have gone out of business, leaving people unemployed. According to the study, most people are not within the reach of income required. The median income for a family of four is $53,046; the income required for a family of four is $130,357. The median income is less than half the required, so it is clear that most people are not even close to what they must have to live the American Dream.
ReplyDeleteI think for the most part the study had all the prices correctly represented and categorized. However, I believe that apparel was underrepresented because people like to keep up with the new fashion trends, so end up buying more clothes than they can wear. Clothes expenses is a bigger part than we think. Additionally, I think that internet and phone service should be in the necessities category because we use them every day. Most people who are employed have a laptop they have to use for work and must make calls. Students have to use computers and the internet for homework. These prove that internet and phone service are a necessity, not an extra. No costs were left out; I think all were covered.
I was not surprised by this because of all the prices I have seen rise recently. I have seen these prices myself with colleges and how much it costs for higher education. There has been about a 50% increase in college tuition over the past ten years, while income has stayed the same. For many people now, college is a priority and almost a necessity. Other categories are also rising, but I think that if people are smart with their money, they can save up enough to reach the American Dream.
The American Dream has become unattainable to the majority of Americans for two major reasons. The first reason is because have been stagnant since 1979, which is already 35 years. Stagnant wages hurt the economy because the living costs had dramatically increased, yet, many families of four only produce a yearly income of around $53,000. The second reason why the American Dream has become unattainable to many Americans is because of debt. A lot of Americans are in debt, with an average around $15,000 in credit card debt and about $34,000 in student loan debt. With debts this high, many Americans are stuck in a terrible financial situation, which makes families work long, hard hours at work, making families reluctant to spend any money on wants, such as vacations or for a night out at a restaurant. It is disappointing to say that most Americans are nowhere near the $130,000 minimal income required to live the American lifestyle.
ReplyDeleteIn my opinion, the Essentials section was fairly underrepresented. USA Today's estimate For education, school supplies have become much more expensive (such as fancier calculators, laptops, pencils) and tuition prices for private schools and colleges have skyrocketed. Therefore, I believe school expenses for two children should be around $15,000-$20,000. I would also say that in the Taxes and Savings section, college savings for two children should double from $5,000 to $10,000 a year, since tuition costs are very high. I also believe that vehicle expenses should be in the Extras section, not the Bare Necessities section. It is not necessary to have a car. There are other methods of transportation, such as buses, trains, bikes, etc. This proves that a car is not a necessity.
Overall, I was not surprised with the statistics of this article. I had already assumed that in order to live a financially stressless life, the average household income would be at least in the six-figure range. What did surprise me though, was how low the costs were estimated by USA Today. Most costs were two or three times lower than what I expected them to be. The cost of living standards in the United States are pretty high. Especially for a family of four, there is no way that medical expenses cost around $9,000 a year. Even my family, which has three members, pays around $12,000 a year for just medical insurance. Then there are also costs for doctor's visits, and in some cases, treating injuries. It would be great if the possibilities of obtaining the American Dream were as high as they used to be.
The American Dream is unattainable to a majority of Americans because the middle class no longer has financial power and wages and compensation have flat-lined. The cost of living has increased rapidly over the past ten or fifteen years, including the costs for gas, food, healthcare, and transportation. Ironically, as prices jump, people are still coming home with the same income as before. The middle class is being thinned out because most of them can’t afford to go out shopping or eating. On the other hand, businesses and stores targeted at the middle class are losing profits or even worse, going out of business. The middle class is simply losing their economic prosperity. Most people are not within reach of the American Dream because the average American family, consisting of two adults and two children, has an income less than half of the $130,375 American Dream.
ReplyDeleteI believe utilities and education are all underrepresented. My families water and electric bills go above normal occasionally month because some months you need more water or hear.. Also, a savings account for an education could be approximately $5,000 a year for two kids, however, a GOOD education has to be more than that. The tuition for most colleges increase from year to year. On another note, school expenses are drastically underestimated because more often than not I am assigned a project when I need to buys posters and markets or others supplies.
I find this article hard to believe yet believable at the same time. Personally, I understand that prices are high and wages aren’t increasing as much as they should be because I work and have to pay for certain things on my own: mostly clothes and entertainment. However, the fact that most people can’t afford the American Dream is unimaginable. The detail that the average family’s income is on average $53,000 a year is unacceptable. The American Dream, as Sam Becker explained, should be something desired by Americans and motivate them to work harder to live better. The fact that the American Dream is $130,000, more than double the average family income, forces most to give up hope of ever reaching it. It is disappointing and disheartening to see that a majority of people have to struggle to support a family or in general live a comfortable life.
According to author Sam Becker, the American Dream is officially unaffordable. This is due to the ‘American Dream’ being out of reach for the vast majority of people. A family of four with both adults working full time only makes about $53,046 a year while the American Dream is aimed to cost about $130,000 a year, that’s $76,954 dollars more than what the average family of four makes. With this comes the skyrocketing of the price of living, healthcare, food, utilities, and more. Another reason that the American Dream has become so unreachable is because wages and compensation have completely flat-lined. While the prices of everything go up, wages stay the same and don’t budge, eroding purchasing power of workers everywhere. This also leads to the often closing of businesses because their target buyers, the middle class, cannot afford to spend their money. These factors make it nearly impossible for the average Joe to attain the American Dream.
ReplyDeleteWhile I feel that most of the prices provided were accurate in USA Today’s study, I also believe that some prices were unneeded wrongfully categorized, and varied depending on different families. For example, cell-phone and internet service has been deemed a luxury according to the study. However, especially in today’s age, these things are necessities for communication, working, and in some instances a life-saver. Technology is used so much today that it is impossible to keep up without some form of internet or telephone service. I also feel like college savings was overrated. This is because most families that make low salaries are more worried about day to day expenses than funding their children's college education, especially if they qualify for certain amounts of financial aid. Also, many families may opt to cut out family vacations and “entertainment” expenses, making the American Dream $8,247 cheaper.
Overall, I find this article and study completely horrifying. It surprises me to see that I value of life that I deem acceptable is mere peanuts compared to the standard of living the American Dream. It is also a bit shocking to see that in an age so reliant on technology, internet, cable TV, and phone service is considered a luxury and not a necessity. The article’s tone also allowed me to believe that the standard of living is only going to continue skyrocketing and wages won’t get any better. Without taking action, more and more US citizens are going to become part of the percent under the poverty line and the US’s economy will continue to suffer without purchasing power restored to the middle class.
According to the Study, the two major factor in the unattainable goal of the American Dream is due to not only the stagnation of wages, but also the increased cost of living over the years. Unfortunately, according to the calculations given in the article, most household incomes fall incredibly short of this estimate at almost a third of the six figure income named by the group. However, I do feel that there was room for improvement in the calculations. For example, they provided a generalized cost of living for the united states; although that figure can be greatly distorted based on the location. The cost of living in New York City would alone make quite the comfortable life in say a suburb in Texas. On the other hand, the cost of education was likely understated. For college in the United States, the entire college savings for an entire family could only go as far as to buy one year at college depending on what education the person was receiving. I do not believe that anything was miscategorized due to our inherent ability to survive without the need to cable television or a Netflix account. Yet, there was one particular cost I was surprised not to see under "The Essentials" which was cost of water. It may be relatively minor, but if we are calculating the cost of the American Dream, which includes living, a more accurate number is always desirable.
ReplyDeleteUpon finishing reading the article, I feel a distinct lack of emotion. Perhaps, I simply lack any actual experience trying to live on my own, perhaps subconsciously I feel this number either doesn't apply to me or that I won't have any difficulty reaching it. After all, I am living comfortably, typing away at a computer without any form of debt hanging precariously over me. This is obviously meant to be a wake-up call, to rouse people to change the economy, to form unions, to raise the wages, to cut down inflation. But, for all I'm reading, I see numbers. I know this newspaper said this and this one said that, but there is no emotion behind these words for me. If anything I feel that this article is pilling more onto my plate, setting a distinct goal my paycheck will have to reach to be happy, not labeling this injustice as anyone's to bear but mine and if it is a personal issue, it definitely isn't something I'd take to the streets protesting about.
The idea of the American dream is no longer attainable or affordable to the majority of Americans. According to a study done by USA Today, an average family of four - consisting of two adults and two children-requires a six figure salary of $130,357. This number includes calculating the cost of a family’s essential expenses, some extras, and taxes/savings. According to the U.S. Census Bureau, median household income between 2008 and 2012 was $53,046 per year. This is less than half of the first study’s expenses, leaving the dream of a comfortable lifestyle nearly unattainable. The issue causing the American dream to be unreachable is the lack of financial power. Costs of living have increased dramatically over the past 10 to 15 years, as prices have begun to skyrocket. The second factor leading to this problem is that wages and pay have remained the same. Prices have risen, but wages have not moved, leading to an imbalance in purchasing power. The middle class no longer has the money to remain financially stable while spending enough to keep the market alive.
ReplyDeleteIn the study, expenses were broken into the two categories of necessities and extras. Under the necessities were costs such as housing, utilities, groceries, and medical expenses. The extras encompassed such costs as entertainment, summer vacation, and a combination of cable, satellite, internet, and cell phone. In the past, internet and a cell phone may have been considered a luxury but in today’s society they are a necessity. There is no reason to have them labeled as an extra if both are required in a modern day environment. Both work and education require the internet and the ability to contact others. As well, the numbers seemed to be a little unrealistic. A number of $4,580 was allocated for summer vacation which can be reduced drastically and used in other areas. As well, debt is a big issue that was not included in either category, but is a problem that plagues many Americans. Both student and credit card debt requires the repayment of a separate sum of money and should be included into the expenses.
Experiencing the American dream is no longer attainable by the general public and that is a scary thought to realize. The middle-class is falling apart and slowly disappearing as prices increase while the wages lower. An average family of four requires a six-figure salary to be able to live in normal terms. The cost of living has grown so large that even the so-called American Dream is nothing but a modest, normal way of life. It is not a grand or magnificent way to live as one might think, but one of simplicity and comfort. Providing for oneself and family is unattainable under the current circumstances and will drastically affect our way of life in the long run. As a young, middle-class American, it is hard to feel good about entering into a world of inequality.
The American dream is unattainable for many reasons, two stated by the article: rising prices and flatline wages. With the same income and higher prices, people aren’t able to afford what they’re normally used to. The food they buy changes to cheaper, less quality food, new clothes become hand me downs, etc. And with less money being spent, that means even higher prices, until the economy collapses, having no one to blame but itself.
ReplyDeleteVacation funds were definitely over precedented. No one needs to be spending $4,580 for good, quality family fun. You could drive to the state next door, stay at a hotel for a few nights and take in the sights. Entertainment is definitely over precedented as well. As the article already stated, there’s Netflix. Easy entertainment for less, and it’s not like it’s outdated either. Utilities are highly under precedented. Rounded, costs for yearly utilities is about $7,020 alone, for only oil, electricity, and water. The article gives $1,956 for utilities. I feel that the education savings really depends on your child. It’s hard to put a price on education. The article does say that college fees are constantly rising.
The final number of $130, 357 shocked me. After going over all the costs needed for essentials, extras, taxes, and savings the money allotted was not enough, yet, the average American makes less than that every year. The money given for utilities shocked me the most. I asked my parents about how much they paid each year for electricity, oil, and water. The number was more than three times the number given by the article for the “American Dream.” If utilities is listed under essentials, I don’t think just living with the essentials qualifies as “the dream.”
A study by USA Today reported that the American Dream is unattainable for most Americans for two reasons: the cost of living has increased drastically (gas prices, food prices, home prices, etc.) and wages and incomes have flatlined. The fact is, for a family of four to achieve this lifestyle, they require a household income of $130,357, and in today's world that is impossible for most people, even with two people in the household working a full-time job. But a combination of lower wages and higher prices worn down on the middle class, which has typically been the target when it comes to advertising the American Dream.
ReplyDeleteI think the study was pretty comprehensive in terms of outlining the major parts of a person's life that they would need to spend money on. However, I would argue that services such as phone service and internet connection are essential to a professional life today. It would be nearly impossible for an employer to reach someone if they don't have a phone to be called on, and therefore that person would either not get the job or would be fired eventually. And so much work is done on the internet nowadays that it's far more convenient to have your own internet service rather than go to a public library to use the internet. For example, homework is largely done on computers now, so when the students of today grow up, technology will undoubtedly be more integrated into the workforce, making it a necessity rather than a luxury.
I was really shocked to learn that a six figure income is what a family of four needs to achieve the "American Dream" which is, honestly, just living comfortably. As a sixteen-year-old with a part-time job at minimum wage, that's a pretty unimaginable amount of money, and hearing that it's such an unattainable income for a person in the middle class is a little disheartening (albeit understanding). I obviously want to live a comfortable and self-sufficient life someday, whether that be on my own or with a family, and it's worth worrying about whether that household income number will go up. I suppose only time will tell, but for now, $130,000 sounds a lot like a pipe dream if I want to live the American Dream
The majority of Americans simply cannot afford the American Dream. Primarily, as the author states, this is due to stagnated and eroding wages and an alarming increase to the cost of living over the past decade or so. Between 1979 and 2012, your average worker saw a whopping five percent increase to their wages. The lowest twenty percent of workers actually saw a decrease in their wages by 0.4 percent. These percentages are obscenely low especially when you consider productivity has increased by almost seventy five percent. The “American Dream” lower and middle class people are sold on is so far out of reach for most people. Between 2008 and 2012 the median household income was $53,046; this number does not even cover the “essential” costs for the American Dream. Therefore, more than fifty percent of people (at least) will be unable to achieve the so-called American Dream.
ReplyDeleteWhile the study provides an idea for the cost to live the idea of an American Dream, certain costs are over exaggerated and/or misplaced. Firstly, the price of groceries is too high, especially when factoring the idea that a meal at a restaurant serves as a meal in itself. The price of groceries averages to $243 a week, which seems high because on average, (according to the study) people spend $70 a week on restaurants. Even if you were to ignore these costs, it cannot be denied that internet and phone service are so close to a necessity they might as well be considered a necessary cost, bringing the essential costs up to $61,591, still out of reach for the median earners. Lastly, the amount of money being put into the 401(k) fund is maximized, leaving that as income that could have been used to fund other aspects of the “American Dream”.
This article came as a shock to me. As a boy, I always hoped to grow up and own my own house, car, and life in general. After seeing this article however, I am sincerely heart-broken. Knowing that even if I do achieve the American Dream, most people will not share in my good fortune is depressing. I used to believe in the foolish ideology if I could work my way up in a company I could reach this American Dream. Now, I know that if I do make my way up the corporate ladder I still need to make more than twice the average person to make my dreams a reality. Overall, this article has done nothing but shatter my childhood aspirations
According to the article, the American dream is now officially unaffordable, which is very unfortunate to hear. Becker identifies that this is so due to two factors: a profound rise of the cost of living, and stagnation in wages. Currently, a family’s income is eaten up by gas prices, food prices, healthcare and transportation costs, housing prices, and many, many more. The standard of living is increasing, and the financial power of the people isn’t. In addition, the fact that wages have only increased 5.0% between 1979 and 2012 even though productivity has grown 74.7% makes it even worse. People are working full time, yet are still below the poverty line. In fact, the median household income is only $53,046. This is about half of $130,357, the needed income to afford the American dream.
ReplyDeleteFurthermore, the study went on to describe different necessities of a modern family in America. I agreed with most of the categorizing of the essentials, however, I was a little suspicious about the groceries expense, which was $12,659. This would mean that a family would spend $1,000 on groceries alone every month, which seemed a bit unbelievable to me. In fact, I would think due to the rising prices of groceries, more families nowadays would turn to fast food. However, one thing that I think was very downplayed was debt! In my opinion, debt should have had it’s own category apart of from essentials and extras. In a previous video, we learned that debt is a separating factor between the rich and poor classes. Accumulated debt really speaks about a person’s position financially, and the article itself said that for many families, debt repayment is a monthly expense. Also, students and new workers are crumbling under student loans. With student loans factored in, education costs a lot more. Furthermore, I think Internet and telephone service should have been classified under utilities in essentials. Technology has become increasingly present in work settings, school settings, and more and more and more people are becoming dependent on it.
Reading the article is really disheartening. I am saddened that so many families are further away from the American dream than expected, despite working full-time. When the numbers are all laid out, it can truly be seen how much prices are rising, and how big of an effect they’re having. In addition, I am also fearful because we previously learned that stagnation in wages has happened before economic collapse. Being a student entering college soon, and then starting a career, I am nervous to see productivity continually increase, but wages stay the same. Like the article said, it withers the middle class, something we also learned to be the backbone of the economy. I feel like we should really be focusing on investing in the middle class and education, seeing as they are the future for our economy.
The American Dream is unattainable to the majority of Americans because (1) the cost of living is increasing and (2) wages and compensation have not. Flat wages and job losses have been hindering the economic growth of the middle class. The amount of money to attain the American Dream is about $130,000. Most people cannot afford this: the median income of households is a mere $53,046 per year.
ReplyDeleteCosts that were underrepresented in the study were the extras. Internet, cable, and cellular phones were considered extras, and the cost of extras like these can skyrocket during the year. Most importantly, there are other extras that are often necessary and should be considered: this includes extracurricular activities, private schooling, and commuting (airplane, train, etc.) costs. There are not items categorized incorrectly: though it is true that internet and phones are necessary, they can be managed without (by using library computers or friends' phones). As mentioned before, costs such as commuting, education, and other activities are common and should be included in the study.
My reaction to the article is without surprise. After watching a documentary on pay inequality, I learned that a good majority of the U.S. is unemployed and/or in poverty. To afford expensive luxuries all at once: such as medical care and decent groceries seemed unlikely given the U.S.'s financial situation.
The American Dream is unattainable for majority of Americans today. This is because of the two factors that make the "American Dream" out of reach which are the lack of financial source. If workers do not earn enough they cannot support themselves or their family. This leads to the second; since the cost of living has exponentially increased, salaries would need to increase to keep the "America Dream' attainable. However, they have not and have only "flat lined."
ReplyDeleteThe cost of taxes seem underrepresented in the study. Over the summer I worked as a lifeguard and I watched my pay stubs say I should be making about 600 dollars for the past two weeks, yet only 500 dollars or so would make it into my bank account. As of last year, my tax return was only a mere $28 dollars, and I am a minor! If an adult working a minimum wage or a slightly above minimum wage job like i was, they would be loosing more money from their salary and then still have to pay more taxes! Additionally, some items categorized incorrectly are cell phone service, internet, and cable. These items are staples in the American lifestyle. Not only that but the cellphone is for everyone's safety. This way someone can be reached where ever they are, especially teens and young adults who may be out by themselves, and their parents or roommates may want to check on them. Additionally, if anyone is in trouble, a person could contact the authorities (911) right away if they had a working cell phone. The internet is a necessity as well. Every student and working person needs the internet to do their work, research, communicate with peers, teachers, and bosses. Lastly, cable or a TV provider could be considered a necessity because TV shows are part of American culture and is the primary way that most people get their news information. This is important because everyone needs to be able to know whats going on in the US and the war weather it be a weather storm, warning of any sort, death(s), and tragedy. Lastly the number completely unrepresented by this study is daycare which is a necessity for working Americans. If the parents in a family are both working full time, many turn to day care sources and before/after school care sources. These can cost thousands of dollars per year, depending on the amount of children and how often you need these services, but nevertheless, they are necessary.
My reaction to the article was annoyed. I was annoyed because I want the American dream attainable to all, and it clearly isn't now a days. Additionally, I was annoyed because the categories were clearly messed up and altered for the needs of the government to list, not the actual needs of the average American. Things that are definitely necessary, the government categorized as "extras". In addition at the same time, they did not include the necessity of any working America that is part of a family, day care. I think if the report was done again, it needs to be more comprehensive.
According to a recent USA Today study the American Dream is unreachable for a majority of the families in the nation. Over the past ten to fifteen years the cost of living has raised while wages and compensation has remained the same. The study goes off a family with two full-time working adults and two children. Some families of four do not even make half of the $130,357 annual wage needed to attain the American dream.
ReplyDeleteIn the essentials list I disagree with the car expenses and education expenses. Many families require more than one car to be able to get to work, and maybe older children need a car to get to school. I strongly disagree with the education budget, because college tuition is extremely expensive in today’s world. Even though there are various options to get around these costs like public transportation or carpooling, and going to a County College with lessened fees, some families can not take that route. I also think the cable, internet, and cell phone bills should be added to the essentials list because everyone needs a way to be connected. Students need to be able to contact their parents, and many parents need cell phones for business calls. Having these costs in the extra list was not well representing the current average family.
I am shocked with this article being that I am apart of a family of seven. If an average family of four can not attain the American dream how can my own family? Between the extensive education costs, vehicle costs, and the overall cost of living I am sure it will difficult for myself to one day achieve the American dream. Overall, I think education costs need to be brought down so an average family is able to cover them. I think costs of living should also be brought down and pay should go up. This may ease the minds of many families going through financial turmoil because of low income and high outcome.
The American dream, priced at $130,357 according to Sam Becker, is very unattainable for an average American household. Two major factors causing this are the fact that prices have gone up but wages have stayed constant. The Middle Class no longer has the money to support small business leading to their closure more recently. Becker states that flat wages and "job losses have been the major barriers to economic prosperity for many in the middle class". Most people are not within reach of the income required to attain the American Dream. The Middle class is slowly fading and molding into a larger lower class and smaller upper class. With rising prices in groceries, household expenses, educational expenses, and other essentials, the Dream is far out of reach for most.
ReplyDeleteI believe that the medical expenses as well as the expenses for technology were represented inaccurately. Medical expenses tend to vary from household to household so $9,144 may not cut it. Some people rarely visit the doctor and others visit every time they feel ill. Also, some people have medication they need to be able to afford as well as therapies or other highly required doctor visits. Also, expenses for technology such as cell phone plans, television, and internet might be a little more than necessary. It is not needed to have an expensive plan for a cell phone, included in that would be a data plan, and also, internet is not required to have, but more and more jobs, and schools use them everyday therefore making it easier to do work outside of work or school at your home.
My reaction is pure disbelieve. People from all over the world venture to America to start a better life for themselves. They try to escape their home lives and the terrible conditions there. They receive poor pay and working conditions and come to America for the “American Dream”. When in reality the American Dream is far too expensive for the average person, especially people new to the country to afford.