The American Dream may be taking its last breaths, according to a new poll from The Wall Street Journal.
Nearly 70% of respondents said they believe the dream “no longer holds true or never did.” That’s the highest level of doubt in the survey’s 15-year history [1].
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What’s striking is how broad this pessimism is. It crosses political, class and demographic lines. Men and women reported similar views, as did young and old, high- and low-income earners and those with or without college degrees.
The only major split was political. Republicans were more optimistic: 55% reported negative views, compared with 90% of Democrats.
This discontent may reflect today’s economic climate, but it could also signal something deeper: that American workers are giving up on the future. We’ll explore the current economic picture for families, then offer tips on how you can feel more in control — and maybe more optimistic — about your financial outlook.
Economic headwinds sink America’s spirits
“It sort of saddens me,” said Neale Mahoney, an economics professor at Stanford University, in an interview about the poll. “I think one of our superpowers as a country is our relentless optimism … It is the fuel for entrepreneurship and other exceptional achievements.”
The poll found that only 25% of respondents feel they have a good chance of improving their standard of living, a record low in the 38-year history of the study. More than 75% said they doubt life will be better for the next generation.
There are glimmers of hope. About 44% of respondents felt positive about the economy, up from 38% in 2024.
So does the sentiment match the data? Here’s a quick look at the numbers shaping Americans’ outlook:
- Housing prices: The median home price in 1979 was $63,900. As of 2025, it’s $403,800, a 532% increase [2].
- Wage stagnation: Wages for middle-income earners have grown only 6% since 1979 [3].
- Wage gaps: CEOs now make 296 times what a typical worker earns, up from 30 times the rate in 1979.
- Inflation rate: While inflation is cooling, 7% in 2021 and 6.5% in 2022 still weigh on household budgets [4].
- Cost of living: The consumer price index shows inflation at 2.7%.
- Debt levels: Americans have reached record credit card debt levels of $1.21 trillion in 2024 [5].
- Employment rate: The unemployment rate is 4.3$ as of August 2025, which is considered a healthy level [6].
While high housing costs and low wages didn’t happen overnight, confidence in the U.S. economy seems to have reached a crisis point.
Mahoney, who studies economic sentiment, said that before the pandemic, attitudes about the economy lined up more closely with economic data. Since then, there’s been a sharp divide.
“The gap is staggering,” he said.
Read more: Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
Restructuring your finances to get ahead
Even with stagnant wages and high costs, there are steps you can take to get on more stable ground.
A report from Forbes noted that many young people are already shifting their money habits [7]. In a Prosper Insights & Analytics survey, 58% of Gen Z and 55% of Millennials said they feel “only somewhat in control” of their finances. Nearly half said they’re dining out less, while 34% of Gen-Z and 28% of Millennials reported cutting back on entertainment to save money.
Here are a few more strategies to boost financial health:
- Eliminate debt: Pay down your highest-interest debt first to free up more cash each month.
- Use student loan repayment plans: Income-driven plans can lower monthly bill [8].
- Invest consistently: Investing $1,000 a month in the S&P 500 could grow your wealth to about $260,637 in a little more than 10 years.
- Save aggressively: Trim your budget to fully fund an emergency savings account and grow your investments.
- Consider a side hustle: Nearly 52% of U.S. workers have one, according to The Wall Street Journal [9]. This can help you save, invest and feel more in control of your finances.
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Article sources
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[1]. The Wall Street Journal. “Americans Lose Faith That Hard Work Leads to Economic Gains, WSJ-NORC Poll Finds”
[2]. Federal Reserve Bank of St. Louis. “FRED Graph”
[3]. Economic Policy Institute. “Wage Stagnation in Nine Charts”
[4]. Investopedia. “Historical U.S. Inflation Rate by Year: 1929 to 2025”
[5]. Federal Reserve Bank of New York. “Center for Microeconomic Data”
[6]. Bureau of Labor Statistic. “The Employment Situation — August 2025”
[7]. Forbes. “Young Americans Reshape Finances Amid Economic Pressures”
[8]. Federal Student Aid. “Federal Student Loan Repayment Plans”
[9]. Wall Street Journal. “Americans Are Side-Hustling Like We’re in a Recession”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.