America Marks 250th Birthday as Younger Generations Earn Less Than Parents

The American Dream of economic security and upward mobility is becoming harder to achieve, surveys show.

Published on Feb. 8, 2026

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As the United States approaches its 250th birthday in 2026, a new analysis examines the state of the American Dream. Interviews with Americans from all walks of life reveal that the dream is increasingly elusive, with younger generations earning less on average than their parents did. Rising costs of living, stagnant wages, and declining economic mobility have made it harder for many to achieve the financial security, optimism, and personal freedom that define the American Dream.

Why it matters

The American Dream has been central to the nation's identity since its founding, representing the aspirations of generations of Americans. However, the data suggests this dream is fading for a growing number of people, which could contribute to increased polarization and dissatisfaction with the country's direction.

The details

The analysis found that the American Dream is typically defined by three key ideas: 1) the economic bargain that hard work should lead to financial security, 2) the hope that each generation will do better than the last, and 3) the freedom to pursue one's full potential. But data shows these goals have become more elusive. Median wages have stagnated since the 1970s, while costs of living have soared. Upward mobility has also slowed, with younger adults now earning less on average than their parents did. Surveys also indicate growing dissatisfaction with personal freedom and control over one's life.

  • The United States will celebrate its 250th birthday in July 2026.
  • Gallup surveys show the percentage of Americans satisfied with their 'freedom to choose what you do with your life' dropped from 87% in 2007 to 72% in 2024.

The players

James Truslow Adams

The historian who coined the term 'American Dream' in the 1930s.

George Carlin

The late comedian and social commentator who famously said 'It's called the American Dream because you have to be asleep to believe it.'

Mark Robert Rank

A professor of social welfare at Washington University in St. Louis who conducted the analysis and interviews on the state of the American Dream.

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What they’re saying

“It's called the American Dream because you have to be asleep to believe it.”

— George Carlin (N/A)

The takeaway

As the United States reaches a major milestone in its history, the fading of the American Dream raises concerns about the nation's identity and the ability of future generations to achieve economic security and upward mobility. Addressing the factors behind this trend may be crucial to restoring the promise of the American Dream for millions of people.