Federal Reserve Bank President: The American Dream Has Moved Abroad

We reported in 2010 that the American Dream has moved abroad.

We provided additional details in 2013 and 2014.

Today, a very powerful insider – the President of the most powerful Fed bank, the Federal Reserve Bank of New York, Bill Dudley – confirmed that the American Dream has left the country:

The United States has always prided itself on being “the land of opportunity.” Parents hope that their children can achieve more than they did. Over the course of our history, immigrants have journeyed to America in search of a better life, a chance to live the “American Dream.”

What defines the American Dream? President Reagan thought that one element of the American dream is “the opportunity to grow, create wealth, and build a better life for those who follow,” while President Obama has described it as follows: “A child’s course in life should be determined not by the zip code she’s born in, but by the strength of her work ethic and the scope of her dreams.”  One’s destination in life should not depend on where the journey begins.

Equal opportunity does not imply equal outcomes—some people may work harder, be more fortunate in terms of their disposition and endowments, or just be luckier in how their lives evolve.  But it does require that income mobility—in particular, upward mobility—be widely evident and remain part of the fabric of the nation.

***

I don’t think the issue of income mobility receives the attention it deserves.  It is a foundational element for a well-functioning democratic society and provides evidence about the ability of an economy to provide opportunities for its citizens.

***

While income mobility in the United States has been relatively unchanged, it remains well below several other nations. According to Stanford economist Raj Chetty, the probability of moving from the bottom quintile to the top quintile is 7.5 percent in the United States, as compared to 11.7 percent in Denmark and 13.5 percent in Canadatwo countries with relatively high levels of intergenerational mobility.  So effectively the chance of achieving the American Dream is not the highest for children born in America.

Dudley recommends policy changes that will increase mobility in America:

Some kinds of public policies may exacerbate, rather than lessen, the tendency of the housing market to price some families out of good neighborhoods.

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I believe that safe, reliable, affordable and efficient transportation to job locations should be a crucial element in an effective housing policy.

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Access to affordable credit is yet another pillar of a policy program that promotes housing affordability.  We at the Federal Reserve have long worked to ensure that credit flows equitably and that financial services are available to all U.S. citizens.

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The Federal Reserve has the twin objectives of maximum sustainable employment and price stability.

Ironically, Federal Reserve and government policies of the last 8 years have exacerbated all of these problems and decreased income mobility.

Bad government policy is responsible for the medievalking-and-serf levels of inequality and social mobility which are destroying our economy (and see this).

 

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  • DerekJR321

    It moved abroad a long time ago. Thanks in no small part TO the Fed… and Wall Street. Now all the American Dream is, is being able to put food on the table.

    • diogenes

      And 25% of families aren’t managing that. Do you suppose it has anything to do with the fact that 160,000 families among 320 million of us own 28% of everything in America? Or that this oligarchy has usurped our government and replaced it with their predatory hirelings? Does the Federal Reserve play any part in this or is it a benevolent bystander? Does it get dark when you keep your head up your *** for 50 years or do you see the light at the end of the tunnel? Just how much **** will you swallow if the media tells you its chocolate icecream and your teachers chime right in?

      • DerekJR321

        Absolutely right!

  • Zaphod Braden

    Our TRAITORS moved the dream away on purpose for their profit.
    You have been betrayed by those you hired to Represent you.

    A “Global Economy” presupposes “Global WAGES.
    You, your children will be working for the same pay as
    Bangladeshis and Chinese.
    The Standard of Living will be EQUALIZED.
    THAT is what they mean by “equality”
    GET MAD.

  • Daruka

    I saw the writing on the wall years ago after coming back from Vietnam. It took a while but in 1989 I finally escaped the USA , landing an overseas job that tripled my income overnight. TAX FREE. Haven’t been back to work or live since. and wouldn’t move back for a million bucks.

  • JUNE 10, 2014 The Real Jobs Report: “Free Trade” Kills American Manufacturing

    In May, the economy added an estimated 217,000 jobs and the unemployment rate stayed at 6.3%. According to the lie the mainstream media tells we should be happy because we have finally recovered to the number of jobs that we had before the recession began.

    http://economyincrisis.org/content/the-real-jobs-report-free-trade-kills-american-manufacturing

  • Black Swan

    Repetition of lies and deceit in a debt. based economy has been very effective, clever and amusing in its benevolent approach.

  • Brockland A.T.

    Dudley forgot to mention how its all Putin’s fault.

    Now look what happened; some blogger went and blamed American bad government.

  • Three pillars of sand our economic system is built on:
    1.Federal Reserve Bank
    2.Fiat Currency
    3.Fractional Reserve Banking

    The Federal Reserve tries to regulate the economy. Their mandates are maximum employment, stable prices, and moderate long-term interest rates.

    The Federal Reserve creates money and or makes money inexpensive by manipulating interest rates lower. Rarely manipulating rates higher. This is inflation. Prices go up and real wages go down.

    The Federal Reserve creates bubbles and crashes by pushing interest rates too low or too high for too short or too long of time.

    Who regulates the regulators at the Federal Reserve to keep the people safe from it and its mistakes? The only real regulator possible is the free market.

    With the Federal Reserve in place the market becomes the judge of the Federal Reserve decisions, rather than the regulator.

    The Federal Reserve in essence aids debtors and punishes savers. A depreciating dollar aids debtors and harms savers. An appreciating dollar aids savers and harms debtors.

    If you start giving an economy fish (easing Federal Reserve monetary policy, excessive federal government spending; deficit, national debt), the economy starts fishing less and starts dining more. Temporary misallocated (Keynesian stimulated) employment increases and sustainable production employment decreases.

    Abolish the Federal Reserve, the FDIC and all bank regulations except one; require full disclosure on full or fractional reserve backing of deposits. Treat gold, silver and cryptocurrencies as legal tender (not as an asset) for tax purposes.

    If you are concerned about the growing income inequality gap, if you are against war, against the military–industrial complex, against mega-mergers of companies and against invisible taxation, then you are against the Federal Reserve.

  • Apr 12, 2016 The April Emergency The Fed Doesn’t Want You To Know About – Mike Maloney

    Using “expedited procedures” the Federal Reserve Board of Governors held an impromptu (read emergency) meeting yesterday to discuss monetary policy and interest rates. Afterwards Chairwoman Yellen visited the White House for another irregular meeting with the President. Both of these meetings were closed door and both went largely unreported by the mainstream media.

    https://youtu.be/Ne4YJYLm62g