Is the American Dream dead or did it just move to Canada?

[Dave in Phoenix 753]

I note to my Canadian friends, the report ignores that Canada is part of "America." Often articles assume only the U.S. is "America." Sorry for such ignorance down here.

In 1970, 92% of all 30 year-old Americans were earning more money than their parents had earned at that age (adjusted for inflation). Today, that number has dropped to around 50%. That sizable decrease encapsulates why many people today have concluded that the American Dream is dead. Those pessimists include about 50% of all millennials. Still, while the unvarnished economics of the American Dream is deeply concerning, there is a silver lining. Itâ??s called Canada.

The long podcast quoting from various research studies includes data on the percentage of kids born in the 1980's into low-income families made it to the top fifth of income distribution in various countries. In Canada it was 13%. That is still low but about twice as many as in the U.S.

Why better in Canada?
Less inequality - less distance between the 20th percentile and the 80th percentile in Canada, relative to America.

The article goes into great detail on studies in the U.S. of factors why there are huge regional and local differences in the U.S. and how different programs have tried to help upward mobility. These include: Move to opportunity, equitable distribution, family, and social capital factors.

A reader comments:
Missing from this discussion is the fact that it is easier to get into the top 20% in Canada because the bar is much lower. To get into the top 10% USA puts you at about $113,000 USD/yr but in Canada to get to the top 10% only takes $68,130 USD/yr ($89,200 CAD). It is hard to find stats on the top 20% but I imagine the correlation still exists. A more accurate assesment would be if it is easier to reach the top 10% in Canada compared to the top 20% in USA, which are much closer in real dollars earned.

Much more at [url]http://freakonomics.com/podcast/american-dream-really-dead/[/url] which includes a transcript of the podcast.