Has the American Dream Changed, or Is It Gone?

Growing up in Germany, I often heard about the American Dream. People said one could make it “vom Tellerwäscher zum Millionär,” meaning “from cleaning the dishes to a millionaire,” equivalent to the English phrase “from rags to riches.” I grew up with the idea that everybody, independent of one’s social status, could become a millionaire if they only worked hard enough, even if they had to start with a low-income job. As a child, I was amazed by this and thought it was terrific that hard work would pay out. I also thought this also meant low barriers to developing new skills, opening a business, and everything that comes with “making a career.” Little did I know.

When I moved to the U.S., an American friend of mine said, “The American dream is dead. These days, you can only get rich if you win the lottery or a big lawsuit.” Some Europeans joke about the lawsuit “situation” in the United States. I’ll never forget when McDonald’s started giving out hot drinks in cups that stated, “Caution. Hot drink inside.” My friends and I thought it was common sense that if I ordered a hot coffee, I’d expect to receive a hot drink and handle the cup carefully. Then we learned about the “Liebeck v. McDonald's Restaurants” lawsuit and that companies began using warning labels to mitigate liability. To us, this seemed so odd, as the German courts would typically consider whether the consumer acted with reasonable care. The idea that coffee is hot would be considered common knowledge, so consumers would be expected to handle the drink carefully.  

Germany doesn’t have punitive damages, unlike the U.S. legal system. In Liebeck v. McDonald's, most of the verdict involved punitive damages meant to punish the company for its behavior. German courts would only award compensation to cover actual damages (medical bills, lost income, etc.), not for punitive reasons. Even if McDonald’s were found liable, the compensation would likely have been much lower, focused solely on the plaintiff's actual losses, without additional sums to deter similar behavior.

The “Liebeck v. McDonald’s Restaurants” lawsuit came to my mind when my friend said you can only get rich in the U.S. if you win a lawsuit (or the lottery). In his following sentence, he said, “But both are equally unrealistic as the chances of winning the lottery are 1 in a couple million, and companies got their ground covered and put warning labels on everything.” That also reminded me that the U.S. even banned Kinder Überraschung (Kinder Surprise) because it has a little toy inside, with the toy being suitable for use by children of 3 years or older. 

So, has the American dream changed?

In the mid-20th century, the Traditional American Dream was centered around the idea that anyone, regardless of background, could achieve success through hard work, perseverance, and equal opportunity. It often included aspirations of homeownership, financial security, the ability to move up the social ladder, and a better life for future generations, focusing on the nuclear family ideal.

While some still hold to these traditional values, many others seem to pursue a more self-centered life focused on personal fulfillment, flexible lifestyles, and financial stability without the same focus on long-term commitments or family structure. One thing that stood out to me and many others, especially during the 2024 election, was the changing political landscape within the Democratic Party concerning views on personal autonomy and reproductive rights. We heard voices within the party that advocated for greater access to abortion services, emphasizing a woman’s right to decide about her body and life circumstances and calling for the federal government to reinstate Roe v. Wade. This perspective contrasts with that of pro-life advocates, often grounded in religious beliefs, who believe in prioritizing the protection of the unborn. These differing views have sparked considerable debate; however, they reflect the broader conversation in society about balancing personal freedom, moral values, and the role of government in such deeply personal matters. And I wonder, is this the New American Dream?

If yes, did the New American Dream arise because following the Traditional American Dream has become increasingly challenging? “Dreamers” are challenged by growing economic inequality, with the wealthiest Americans accumulating a disproportionate share of the country's wealth. While the cost of living has risen, especially in housing, healthcare, and education, wages for many Americans have not kept pace, making the traditional dream of homeownership and financial security harder to achieve. The rising costs of education drive younger generations into debt, delaying or derailing traditional aspects of the American Dream, such as settling down, buying a home, or starting a family. Add to that the fact that the U.S. healthcare system is expensive, driving many Americans into medical debt if they are uninsured or underinsured, and even if you have expensive health insurance, you most likely still have to cover deductibles.

If not, what is it? And is it the same for everyone? I’d love to hear what the American Dream means to you. You can either use the comments section or interact with me via X, email, or through the feedback function on my website.


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