The American Dream, Then and Now

America has always taken pride in being the land of opportunity, a country in which hard work and sacrifice result in a better life for one’s children. Economic growth made that dream a reality for generations of Americans, including many people who started out poor. Between 1947 and 1977, a period in which the gross national product (GDP) per capita doubled, the incomes of the poorest families nearly doubled as well (see figure 1.1).¹ In fact, for the first three-quarters of the twentieth century, economic growth was a rising tide that lifted the boats of the rich and poor alike.