The Myth of the Rugged Individual

Robert Reich

Robert Reich Former U.S. Secretary of Labor, Professor at Berkeley

The American dream promises that anyone can make it if they work hard enough and play by the rules. Anyone can make it by pulling themselves up by their “bootstraps.” 

Baloney. 

The truth is: In America today, your life chances depend largely on how you started – where you grew up and how much your parents earned.

Everything else – whether you attend collegeyour chances of landing a well-paying jobeven your health – hinges on this start. 

So as inequality of income and wealth has widened – especially along the lines of race and gender – American children born into poverty have less chance of making it. While 90% of children born in 1940 grew up to earn more than their parents, today only half of all American adults earn more than their parents did. 

And children born to the top 10 percent of earners are typically on track to make three times more income as adults than the children of the bottom 10 percent.

The phrase “pulling yourself up by the bootstraps” itself is rubbish. Its origins date back to an 18th-century fairy tale, and the phrase was originally intended as a metaphor for an impossible feat of strength. 

Other countries understand that the family you’re born into as well as the social safety nets and social springboards you have access to play large roles. 

Children born poor in Canada, Denmark, or the United Kingdom – nations without America’s degree of inequality, nations which provide strong social safety nets and public investments – have a greater chance of economic success than children born poor in America. 

Individuals in those countries are blamed less for their personal failures and credited less for personal successes. 

So, why is America still perpetuating the fallacy of the self-made individual? Because those in power want you to believe it. If everyone thinks they’re on their own, it’s easier for the powerful to dismantle unions, unravel safety nets, and slash taxes for the wealthy. 

It’s in their interest to keep the American Dream deeply rooted in our psyche – the assumption that you determine your destiny. So we don’t demand reforms that are necessary – paid family and medical leave, for example, or early childhood education, accessible childcare, and policies that lift every family out of poverty.

Let’s stop perpetuating this myth of the self-made individual. And let’s start rebuilding the American dream by creating opportunities for all, not just those who are already wealthy, privileged, and well-connected. 

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Reposted from Robert Reich

Robert Reich served as the nation’s 22nd Secretary of Labor and now is a professor of public policy at the University of California at Berkeley. His latest book, Aftershock: The Next Economy and America’s Future, is now in bookstores. His earlier book, “Supercapitalism,” is out in paperback. For copies of his articles, books, and public radio commentaries, go to www.RobertReich.org.

Posted In: Allied Approaches

Union Matters

America’s Wealthy: Ever Eager to Pay Their Taxes!

Sam Pizzigati

Sam Pizzigati Editor, Too Much online magazine

Why do many of the wealthiest people in America oppose a “wealth tax,” an annual levy on grand fortune? Could their distaste reflect a simple reluctance to pay their fair tax share? Oh no, JPMorganChase CEO Jamie Dimon recently told the Business Roundtable: “I know a lot of wealthy people who would be happy to pay more in taxes; they just think it’ll be wasted and be given to interest groups and stuff like that.” Could Dimon have in mind the interest group he knows best, Wall Street? In the 2008 financial crisis, federal bailouts kept the banking industry from imploding. JPMorgan alone, notes the ProPublica Bailout Tracker, collected $25 billion worth of federal largesse, an act of generosity that’s helped Dimon lock down a $1.5-billion personal fortune. Under the Elizabeth Warren wealth tax plan, Dimon would pay an annual 3 percent tax on that much net worth. Fortunes between $1 billion and $2.5 billion would face a 5 percent annual tax under the Bernie Sanders plan.

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No Such Thing as Good Greed

No Such Thing as Good Greed