U.S. — Younger generations in the U.S. express declining belief in the American Dream, citing economic challenges and job market volatility. David Blanchflower, a labor economist and lecturer at Dartmouth College, stated, "Every generation faces economic and social 'shocks.'"

Older members of Gen Z, which includes individuals currently aged 14 to 29, who have entered the workforce are experiencing worry, stress, and depression. Blanchflower noted that, "Older Gen Zers who've landed 'good jobs' struggle with worry, stress and depression." A study co-led by Blanchflower in August 2025 indicated a flattening of the traditional U-shaped curve of happiness, with young people reporting increasing unhappiness throughout their lives.

Mark Rank, an author, professor, and researcher of the American Dream at Washington University in St. Louis, stated that "The viability of the American Dream, popularized during the country's post-World War II era, has dwindled." Rank said the maxim "'if you work hard and you play by the rules, you should do OK economically,' doesn't hold anymore." The American Dream began to diminish economically with globalization, as companies relocated production out of the U.S. and utilized foreign labor, leading to downward pressure on American wages. He added, "What male full-time workers are earning today is right about the same as they were earning in 1973, controlled for inflation."

Raj Chetty, an economist and professor at Harvard University, identified a decrease in intergenerational upward mobility. "For children born in the 1940s, about 90% earned more than their parents, compared with about 50% for children born in the 1990s," Chetty said. Gen Zers attribute their dissatisfaction with opportunities to factors such as underemployment, the Covid-19 pandemic, war, trade tariffs, artificial intelligence, automation, and job-hugging.

Forty-two percent of Gen Zers believe the American Dream is only achievable for some people, not everyone, according to a CNBC and SurveyMonkey American Dream Pulse Survey. A Gallup poll in 2001 found that 76% of Americans surveyed were satisfied with opportunities for people to advance in the U.S. through hard work. By 2026, a Gallup poll indicated that 49% of Americans surveyed held this view. Jeff Jones, a senior editor at Gallup, stated that the decrease in satisfaction regarding economic opportunities was disproportionately influenced by younger respondents. Chetty suggests that the future of American socioeconomic mobility depends on increased support from communities and policymakers at various levels of government, pointing to the quality of schools, neighborhoods, and social networks as areas for investment.

Why It Matters

The observed decline in belief in the American Dream among younger generations marks a shift from sentiments prevalent in earlier decades. This trend, evidenced by economic data and survey results, indicates a perception of reduced upward mobility and increased economic insecurity. The identified factors, such as stagnant wages, job market volatility, and global economic shifts, contribute to mental health concerns among young workers. The findings suggest implications for future socioeconomic policies and community development, as experts point to the need for greater support to address these challenges.