3 Pillars of the American Dream: An Introduction

I read an article last week as I perused my usual news cycle (while enjoying my Dunkin Donuts special of course), and I came across this piece from Time Magazine: “Costco is Facing a Looming Bulk Sized Problem.”  When I read that headline I at first was puzzled.  While I myself am not a frequenter of Costco (what am I going to do with that much stuff???), I never would have imagined that Costco would be in any sort of financial danger.  After all, I hear about it all the time at work and other places, either Costco or BJs, people swearing by their memberships. 

           

As I read the piece, my thinking started to shift.  Perhaps Costco isn’t as healthy as I thought.  After all, my first thought before I read it was that I myself am not a Costco shopper.

 

And that is exactly the point. 

 

We are entering, or have already entered, a severe demographic shift in not only the USA but the whole world, and what is happening at Costco is just a microcosm of that shift.  What is happening at Costco is indicative of a shift in priorities and values among the populace, and the “Millennials” in particular. 

 

Who are the Millennials?  Those of you reading this might even be considered Millennials.  I, being born in 1983, am a borderline Millennial.  You hear that word being used a lot today in all kinds of media.  Millennials are defined as people who are coming of age in the new millennium, the 21^st Century.  Often times you will hear it used with almost a jingoistic tone to it: something along the lines of “We are the Millennials!  This is OUR generation!”  Or you could hear that Millenials “need to be listened to” and “they are who are driving the nation” or something like that.  Why do the Millennials matter?  In an era of rapid population growth, and the Baby Boomers on the verge of retirement, Millennials are now taking over cityscapes, and more importantly, social media.  They live in an era of instant gratification thanks to technology and ever-shifting social norms.

 

I grew up in a household that emphasized traditional values, and for the most part those values have stuck with me as I entered adulthood.  However, if you ask people my age and especially younger what their values are, I would bet more than a few nickels that their answers might be a little different from mine. 

 

Here’s what I mean.  All throughout the 20^th Century (and even today) we hear about living the “American Dream.”  What exactly is the “American Dream?”  Historically, from what I have read and what I have experienced, the traditional American Dream can be summarized in three basic concepts:


1. Home ownership
2. Starting and raising a family
3. Securing retirement 


These concepts pretty much summarize what America was like when the Baby Boomers and Generation X crowd were growing up.  Everyone wants the generation that follows them to be more successful than them, or so one would think.  Owning a home is considered one of the pinnacles of personal success.  I can proudly say that one of my proudest moments is when I received the keys to my first home nearly 3 years ago.  What do you do after you buy a home?  That is when the family dynamics enter: Mom, Dad, 2.8 kids, a dog, and maybe a white picket fence.  You want the next generation to be better off than you, right?  This is where the next generation is traditionally conceived (both literally and figuratively).  Once the kids are in the picture, then it is up to Mom and Dad to secure their nest egg so that when they are gone their kids and grandkids will be safe and secure, so that they can repeat the cycle for their kids and grandkids, and the beat goes on.  Meanwhile, maybe, just maybe, Mom and Dad can save up during that time just enough for that second honeymoon they never got to have.   


That is the American Dream…or is it?   


How many Millennials (ages 18-35) do you think are all that concerned right now with retirement, with having kids, with even owning their own home?  Be honest. 


Where do most Millennials live?  Thanks to rampant gentrification, which I have experienced first-hand in cities like Washington, Baltimore, and New York, more and more young people are returning to high-rise rentals in the city cores and evacuating the ‘burbs.  Population density is skyrocketing in these areas.  Millenials are not as likely to own cars, let alone homes, than their Baby Boomer and Gen X counterparts. 


Why?  They can’t afford it!


Thanks to mounting and mounting student debt (not to mention national debt) due to the ever-increasing cost of a college education, rising unemployment due to a lack of quality jobs, and fewer and fewer incentives for people to start businesses and hire (legal) workers, you have Millennials living far different lives now than their parents.  Entrepreneurship is well on the decline.  A major driving force in the way Millennials live has to do with incurring as little debt as possible, which leads to what I feel is a complete shift of the American Dream.  What do Millennials now view as the American Dream?  Here is what I have concluded it is:
  
1. Seeing the World
2. Having as many friends as possible
3. Doing whatever makes you happy


Notice that these concepts present a stark contrast to the conservative Baby Boomer view of the American Dream.  If you can’t comfortably afford a home, kids, or a nest egg, why should that be part of the American Dream?  Instead, Millennials believe that their American Dream ought to be more personal to them.  Live life now while you can.  It’s the old “Carpe Diem” mentality we learned about in Brit Lit class in high school. 


My parents instilled in me and my siblings the mentality that you have to think for the future.  You have to think 5, 10, 20, even 40 years ahead.  The assumption is that we live longer, but can’t work forever, and you have to be prepared.  However, Millennials don’t share that attitude.  “Why think about what life will be like when I’m 65 when right now I’m only 25?” A lot of this attitude is fostered by social media.  As soon as somebody does something interesting…BANG!...there it is on Facebook, Twitter, Instagram, whatever, and people naturally want to be copycats.  Thanks to social media, we live in a society that thrives on instant gratification.  Living in a constantly interconnected society also allows everyone to know what everyone else is doing at all times…all the good and the bad.  People are naturally empathetic, so they do what they can to help and make a difference…in a completely different way than their parents did. 


This is just the first in a series of essays that I would like to write on this topic, because I feel like it is an important topic, especially for people my age and younger (and to think…it all started with reading an article about Costco).  For each essay in the rest of this series, I will focus on a different aspect of this shift in the American Dream.  Each pillar gets its own piece.  The first will focus on the dynamic between wanting to own a home, and wanting to see the world.  The second will be on the friends and family comparison.  And the third will be on retirement versus “Carpe Diem.” 


Of course, I invite all kinds of commentary and debate.  I feel like this is an important discussion to have.  But please no snarky remarks.   


Source material:
http://time.com/18671/costco-is-facing-a-looming-bulk-sized-problem/
http://business.time.com/2013/08/09/the-great-debate-do-millennials-really-want-cars-or-not/ http://time.com/5074/millennials-put-their-surprising-stamp-on-the-american-dream/ http://rooseveltinstitute.org/new-roosevelt/american-dream-dead-millennials http://www.thedailybeast.com/articles/2013/11/10/are-millennials-turning-their-backs-on-the-american-dream.html
http://www.policymic.com/articles/69375/what-the-american-dream-means-for-millennials http://www.foxbusiness.com/personal-finance/2013/09/10/changing-american-dream-what-it-means-for-future-generations/
http://www.theatlantic.com/politics/archive/2013/08/the-outsiders-how-can-millennials-change-washington-if-they-hate-it/278920/  
http://www.iop.harvard.edu/institute-politics-spring-2013-pollutm_source=email&utm_medium=pressrelease&utm_campaign=SpringPoll2013