The American Dream Part Two: Taking Root

The American Dream Part Two

Have you read PART 1 of our “The American Dream” series?

In the same era the Great Depression occurred and James Truslow Adams coined the term “the American Dream,” President Franklin D. Roosevelt was hard at work attempting to fix the economy.

The road to recovery

Roosevelt initiated numerous government programs in hopes one would kick-start the economy. Included in these various programs was the New Deal, which consisted of the 1934 National Housing Act. The goal of the act was to increase home ownership and construction.

At this point, home ownership was uncommon and those who had homes saved all their money in order to make that type of purchase. However, the Roosevelt administration saw home construction as an important part of the economic recovery. Therefore, the 1934 act set the stage for economic recovery and a new definition of what it meant to attain the American Dream.

Roosevelt’s plan worked. By 1940 home ownership was desired by many Americans and was possible for people of all social classes. Owning a home, other than offering economic stability, allowed people who were never before considered wealthy to achieve the high social status they longed for.

The house was slowly becoming an icon of success and this icon began engraving itself into the American identity.

American Dream shifted with mass consumption of goods

After the war was over the economy began to bounce back—at least for a while. During this post-war time period, many believed each generation would have more than the last: a better home, higher education, more security, and more stuff.

As mass consumption of goods increased the American Dream shifted even further from Adams’ original definition of becoming the best you could be. Owning a home with a white picket fence now stamped the fact you had finally made it and success began being associated with owning tangible items.

Inflation dealt minor setback

In the 1970s, when Jimmy Carter was president, the economy was once again in turmoil due to high rates of inflation. Using the idea of the American Dream in an attempt to inspire, Carter questioned the people about the direction the dream was taking, saying:

“In a nation that was proud of hard work, strong families, close-knit families and our faith in God, too many of us now tend to worship self-indulgence and consumption. Human identity is no longer defined by what one does, but by what one owns. But we’ve discovered that owning things and consuming things does not satisfy our longing for meaning.”

Despite Carter’s warning there was too much focus on materialism, people continued to base success off of wealth and prosperity due to the comfortable lifestyle they became accustomed to in the 50s and 60s.

While American’s faced high inflation rates and increasing debt, the idea of owning a home was still prevalent. However, the ability for everyone to achieve the American Dream and own a home was slowly dwindling as wealth was largely funneled to those at the top.

Middle class fell behind

Those considered middle class at the time still wanted to own a home, but their outlook on buying a home shifted from others viewing them as successful to themselves viewing the property as a good investment.

It was a good investment at that point. By the 1990s the message from the government was: “owning a home would be your greatest source of wealth.” Upon receiving this message Americans did everything they could in order to buy a home knowing it would be a stable investment to help bring them prosperity.

Housing market crashed

Then, the thing no one suspected happened. The housing market crashed in 2008 demonstrating once again how investing in the market can be a complete gamble. When the crash occurred many people lost their houses. When they lost their home, the largest asset they had, they lost seemingly everything.

The economic turmoil the country faced at this time mirrored that of the Great Depression. The crash severely damaged the economy and the American spirit, making many people question the American Dream.