PPI - Radically Pragmatic
  • Donate
Skip to content
  • Home
  • About
    • About Us
    • Locations
    • Careers
  • People
  • Projects
  • Our Work
  • Events
  • Donate

Our Work

Litan for RealClearPolicy, “Fixing the American Dream Machine”

  • October 3, 2018
  • Robert Litan

Fixating on the traditional aggregate measures of the economy’s health — GDP growth, the unemployment rate, or the inflation trade — ignores not only rising income and wealth inequality, but the fact the American Dream machine has been sputtering for at least two or three decades. Stanford’s Raj Chetty and his co-authors have shown that only half of Americans born in 1980 or later were out-earning their parents at the age of 30, compared to 90 percent of those born forty years before. No wonder so many Americans across the political spectrum have been so anxious or even angry, with racial resentment and political incivility on the rise.

Three broad narratives for fixing our American Dream machine, which admittedly won’t cure all problems, have been advanced by political leaders and researchers. The two that have received the most media attention are both either misleading or inadequate.

One narrative, pushed by President Trump and in more muted tones by some Democrats, blames increased and “unfair” trade for the decline of manufacturing jobs and stagnant or slow real-wage growth. Trump and many Republicans also wrongly blame illegal immigrants, who are working (if they can) at low wages doing jobs like cleaning dishes or mowing lawns that few American citizens want to do. 

Continue reading at RealClearPolicy.

Related Work

Budget Breakdown  |  May 22, 2025

House Republicans Pass ‘One Big Beautiful Bill’ Despite Several Big Red Flags

  • Ben Ritz Alex Kilander
Op-Ed  |  May 22, 2025

Ritz for Forbes: House Republicans Pass ‘One Big Beautiful Bill’ Despite Big Red Flags

  • Ben Ritz
Press Release  |  May 16, 2025

Loss of AAA Rating for U.S. Credit Underscores Grave Consequences of Trump’s Budget-Busting Bill

  • Ben Ritz
Blog  |  May 16, 2025

The Data Center Boom

  • Michael Mandel
Publication  |  May 12, 2025

Cutting Credit: How Rate Caps Undermine Access for Working Americans

  • Alex Kilander Andrew Fung Sophia Lu
Publication  |  May 5, 2025

How Trump’s BBB is Shaping Up to Be an Even Bigger Mess Than Biden’s

  • Ben Ritz
  • Never miss an update:

  • Subscribe to our newsletter
PPI Logo
  • Twitter
  • LinkedIn
  • Facebook
  • Donate
  • Careers
  • © 2025 Progressive Policy Institute. All Rights Reserved.
  • |
  • Privacy Policy
  • |
  • Privacy Settings