Ours Was the Shining Future

What happened to the American Dream? And can it still be revived in an era of widening inequality and systemic change?

1. The Origins of the American Dream

The concept of the American Dream emerged during the Great Depression in the 1930s, a period of massive economic crisis that shook the foundations of US society. People began to envision a new way forward, where opportunity was shared more equitably across all social classes. This dream of prosperity and upward mobility became a national ethos.

At the heart of this vision was a strong labor movement fighting for wages, rights, and protections for workers. President Franklin D. Roosevelt's administration played a monumental role in advancing this vision. By supporting unions and enacting worker-friendly policies like the Wagner Act of 1935, the government demonstrated that collective action and strong political backing could transform a dire economic situation into one of hope and upward momentum.

This foundation laid the groundwork for a collaboration between businesses, workers, and government that continued into the post-World War II period. Leaders from all sectors acknowledged that economic prosperity could be shared and sustained when everyone participated in building the nation's future.

Examples

• The Wagner Act supported collective bargaining and worker rights.
• The 1934 Minneapolis coal driver strike led to major union victories.
• Progressive policies during the Great Depression set a template for future economic recovery.

2. Collaboration Between Business and Labor

The mid-20th century witnessed a remarkable alignment between businesses, labor unions, and government policies. This collaboration resulted in widespread economic growth, higher wages, and improved equality. The concept was democratic capitalism—a system where corporate actions aligned with national interests and workers shared in the success.

Labor leaders and corporate executives found common ground by prioritizing stability over discord. President Dwight Eisenhower supported policies that continued this trend, even investing in long-term infrastructure projects for national growth. For example, developing the interstate highway system was a forward-thinking move that prioritized economic growth over immediate profits.

The 1940s and 1950s also marked a time when unions opened doors to more diverse members, creating opportunities for workers of all races to climb the economic ladder. Despite systemic racial inequities, this era provided an avenue for gradual but meaningful socioeconomic advancements.

Examples

• The Committee for Economic Development (CED) promoted worker-business cooperation.
• Corporate leaders prioritized national prosperity over short-term profit during postwar planning.
• The interstate highway system became a symbol of unity and long-term planning.

3. The Turning Point in the 1960s

The 1960s brought a shift in the dynamics of the American Dream, as union influence began to wane and cultural divisions emerged. Wright Mills, a prominent sociologist, criticized labor leaders of the time for their complacency. He observed that the New Left, a budding liberal movement, alienated the working class by focusing on intellectual causes like nuclear disarmament while ignoring labor concerns.

This shift left room for the Republican Party to rebrand itself as more in touch with everyday Americans. By tapping into populist sentiments, Richard Nixon and his administration sought to connect with the working class. Nonetheless, these shifts further destabilized the balance between business, labor, and government, setting the stage for a more fractured political and economic landscape.

The diminishing influence of unions reduced their ability to secure better wages and rights, contributing to growing inequality. The working class became divided and less able to act as a unified force advocating for shared prosperity.

Examples

• Wright Mills criticized union complacency and the disconnect with working-class voters.
• The New Left alienated workers by focusing on academic and societal issues.
• Nixon’s populist rhetoric attracted working-class votes, weakening traditional labor alliances.

4. The Reagan Revolution and Rough-And-Tumble Capitalism

The 1980s marked a seismic shift with the "Reagan Revolution," ushering in policies that amplified economic inequality. Ronald Reagan promoted rough-and-tumble capitalism—favoring deregulation, low taxes, and limited government intervention. His administration actively reduced labor protections and pulled back on public works investments.

The policies brought remarkable economic growth, but the gains disproportionately benefited the wealthy. The gap between the rich and poor widened as unions lost their influence and wages stagnated for middle- and lower-class workers. At the same time, large corporations grew more powerful, consolidating wealth and diminishing the collective power of workers.

Reagan's presidency set a precedent that prioritized corporate profits over economic equity. Policies introduced during his administration shaped the decades to come, steering the economy into one where the few thrived while the many struggled.

Examples

• Reagan cut income taxes and deregulated financial markets.
• Labor protections were weakened, reducing union power across industries.
• Infrastructure and education investments fell behind, leaving long-term economic gaps.

5. The Rise of Neoliberal Policies

During the 1990s, President Bill Clinton carried on many neoliberal policies that widened the gap between the rich and poor. Clinton emphasized deregulation and free trade, promising these measures would benefit ordinary workers. However, these promises largely went unmet, as corporate profits surged while workers’ wages flatlined.

Clinton championed the North American Free Trade Agreement (NAFTA), which facilitated free trade but also led to American manufacturing jobs being outsourced. Tax credits and other reforms intended to lift working-class families fell short of making a significant difference. The benefits of economic growth remained concentrated at the top, further weakening the American Dream.

The neoliberal era showcased the limits of relying on market forces to create balanced economic outcomes. Without government intervention to support workers, the playing field grew increasingly uneven.

Examples

• Deregulation allowed corporate profits to grow while workers' wages stagnated.
• NAFTA contributed to manufacturing job losses in the U.S.
• Tax credits and reforms failed to close the income gap.

6. Polarization and the Decline of Shared Goals

Recent years have seen heightened political polarization, leaving the working class with reduced influence in elections. Both Democrats and Republicans have become more ideologically entrenched, making it challenging for either party to mobilize workers around calls for economic reform.

Immigration policies are one of the most contentious issues. Democrats have focused on pro-immigration stances, often creating tension with working-class voters concerned about job competition. On the other hand, many Republicans have leaned toward restrictive immigration laws to appeal to national security sentiments.

This lack of focus on shared goals prevents the country from addressing the systemic issues affecting the working class. Trust in government and other institutions erodes when neither side focuses on rebuilding economic opportunity.

Examples

• Immigration policies have divided working-class and immigrant communities.
• Neither political party prioritizes economic reform to bolster the middle class.
• Political campaigns focus on cultural issues rather than economic unity.

7. The Importance of Long-Term Investment

One of the most glaring shortcomings of modern policy is the consistent lack of long-term investment. Since the 1970s, government spending on infrastructure, education, and social programs has waned. This has left significant gaps in areas like transportation systems, maternal leave policies, and child poverty.

For example, the U.S. remains one of the few developed countries without a national paid parental leave program. Poor investments in public education and infrastructure place additional burdens on the working and middle classes, making social mobility increasingly unattainable.

Recreating economic equity requires thoughtful, sustained government investments in programs that benefit broader populations. Without these, other economic reforms are unlikely to succeed.

Examples

• The U.S. lacks a national paid parental leave program.
• Infrastructure spending has lagged, affecting transportation and economic growth.
• Poor public education systems impact future workforce opportunities.

8. The Role of Grassroots Movements

The book emphasizes that change must come from the bottom up. Grassroots movements have historically driven significant progress in labor rights and economic reform. Worker-led strikes and mass protests in the past had the power to influence government policies, as evidenced during the Great Depression.

For future reforms to succeed, grassroots movements must refocus on rebuilding trust between workers and government leaders. By amplifying the voices of the working class, these movements could potentially reshape the country’s long-term economic policies for a fairer system.

Examples

• Union-led strikes in the 1930s influenced legislation like the Wagner Act.
• Grassroots movements in civil rights led to shared economic opportunities.
• Protests against corporate consolidation highlight public frustrations with wealth inequality.

9. Rediscovering Democratic Capitalism

Democratic capitalism—a balance between economic growth and social equity—offers a viable path back to the American Dream. This system requires shared responsibility among businesses, government, and workers to create prosperity for all.

Examples from history, like post-WWII infrastructure developments, illustrate how collaboration supports society’s collective wellbeing. Today’s leaders can draw lessons from this era to rebuild a fairer economy by prioritizing long-term goals over immediate profits.

While aspirational, rediscovering this system requires robust political will and a unified effort from people across party lines to rebuild the institutions that once made it possible.

Examples

• Post-WWII investments improved living standards for millions.
• Labor unions in the mid-20th century secured wide-ranging economic protections.
• Businesses once prioritized national prosperity alongside corporate success.

Takeaways

1. Support policies that prioritize infrastructure, education, and long-term investments in public wellbeing.
2. Advocate for balanced immigration reforms that take into account how laws impact both immigrant communities and the working class.
3. Join or support grassroots organizations focused on amplifying the voice of the working class to influence national economic policies.