Is Diversity Exempt from Recovery?

As our economy slowly churns forward and confidence seems to be growing, it appears that our views towards diversity are not moving along the same growth path.  Over the past 7 months, the American Dream Diversity Index has fallen nearly 2 full points.  That is, we have moved almost 2 percentage points away from fully achieving the Dream of Diversity.  For the ADCI, we measure diversity as the attitudes toward the assimilation of differences in one’s community.  More specifically, we look at:

·       The acceptance of diversity in one’s neighborhood

·       The acceptance of different personal and social ideates (i.e. sexual orientation and religious practice)

·       The extent of exposure to diverse cultural experiences

·       The satisfaction with the ability to vote freely and make political choices.

The good news is that the American Dream Diversity Index is the highest valued Index among all American Dream Indices.  The bad news is that all four areas of diversity are slowly degrading.  This begs the question:  Is diversity exempt from recovery?

Over the coming months, the ADCI team will be following this forming trend and report its findings. Visit the ADCI web site for more details.

What the American Dream Means

In recent years, countries are grappling with the question of how to measure national well-being. The governments of The United Kingdom, France, and Canada, for instance, are trying to understand what aspects are relevant for measuring national well-being.  Well, the answer can be found in the American Dream Composite Index (ADCI).  The ADCI provides a comprehensive look at five broad categories – economic, personal well-being, societal, diversity, and environment.  Taken together, these five categories measure how the nation is performing taking into account all the important and relevant aspects of one’s life.  The ADCI is, in effect, the national well-being index for the U.S. So, how are we doing?  Well, the ADCI has been hovering around 63 on a scale from zero to 100.  This means that, as a nation, we are 37% away from fully realizing complete satisfaction with every aspect of our lives.

By My Bootstraps

We often hear that the American Dream is being able to pull yourself up by your bootstraps and make a better life for yourself.  This idea comes from the writings of James Truslow Adams in his work The Epic of America.  In this, he writes that the American Dream is:

“that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement….a dream of social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable, and be recognized by others for what they are, regardless of the fortuitous circumstances of birth or position”

This concept still resonates today and is captured in the American Dream Composite Index as the Fruits of My Labor where it is measured as the extent to which one is rewarded fairly for efforts in life.  Interestingly, it exists as part of our overall personal well-being.  As a significant dimension of the America Dream, it exists as one of its strongest cornerstones.  For February 2012, this dimension was measure at 68.1.  That is, we are 68.1% of the way to fully reaping the benefits of the fruits of our labor, on average.   Not bad, but what’s missing?  Why are we not getting what we feel we deserve? 

Where You Live Affects Your Generational Progress

Generational progress, the feeling that one has a better life than the previous generation, is a significant component of the American Dream. This is a major goal for immigrants as they move to the United States. They want their children to live a better life with more opportunities than they had.


Studies have shown that generational mobility is affected by parental skill and earnings. But does ethnicity also play a role in upward generational mobility? Today, as well as in the past, many people immigrating to the U.S. associate themselves with a particular ethnic group.  Upon entering the country, many people choose to live with and among those with whom they share the same ethnicity or race.  Do such ethnic associations and affiliations affect generational mobility? Recent research suggests that they do.  


A critical finding indicates that the average skills of the ethnic group in the parent’s generation play a large role in the degree of generational mobility realized by children.  Generational income mobility, for instance, will depend not only on parental earnings but also on the mean earnings of the ethic group in the parent’s generation.  This finding has many important implications, not the least of which is that such “ethnic spillover effects” will likely hinder generational progress for relatively disadvantaged ethnic groups.  Although we all may dream of generational improvement for our children, this may not happen for everyone.

Would Your Dad Be Proud You're Better Off?

One of the cornerstones of the American Dream is the notion that the future generations will be better off compared to the current generation. If this were in fact true, then I should be better off compared to my parents, right?  The dimension of ‘Generational Progress’ in the American Dream Composite Index (ADCI) does exactly this.  The most recent survey of the American Dream Composite Index (ADCI) from the month of February shows that the level of satisfaction with Generational Progress was approximately 59 (on a scale of 0 to 100).  We are, therefore, approximately 41% away from complete satisfaction with generational progress.  It should not come as a surprise that the level of one’s education impacts our notion of Generational Progress.  People that have at least a college degree score 63 compared to a score of 52 for people that have at most a high school degree.  So, education turns out to be an important factor that impacts our level of satisfaction with Generational Progress and, ultimately, with the American Dream.

"Talkin’ Bout My Generation"

The Who belt out the classic phrase “Talkin’ Bout My Generation” 16 times in their unforgettable song “My Generation”.  In the song, it seems that they are crying out to those who don’t look fondly upon their generation’s lifestyle and attitude.  They just want to say that no generation is better or worse than another.  However, when someone is asked about one generation to another as it pertains to the American Dream, it is quite clear that each generation wants the next to do better.  But, what is better?

Well, it makes sense that among many things people want their children to acquire better educations and have higher incomes.   This seems to be a prevailing thought.  But, as a composite picture, what does the current state of Generational Progress look like in the United States?  That is, looking at folks living in the United States today, are THEY doing better in general than THEIR PARENTS?  Well, the American Dream Composite Index^TM gives you this information each month.

In fact, our February 2012 results say…somewhat.  I know that seems a bit discouraging. But, when “Talkin’ Bout My Generation”, we’re almost 60% of the way to be fully surpassing the previous generation.  Not bad, but we’ve got some work to do!

The Access to Education Gap Grows

ADCI data reveal a consistent association between accesses to education and income:  access to education increases with income.  The troubling part of this finding is that low-income students are not receiving the education they need and desire.  While there will always be private schools that only the wealthy can afford, our society values a public education system where income is not a deciding factor as far as who gets to attend school and who does not.  Coming to the realization that such a system does not yet exist – despite the best efforts of America’s educators – can be disheartening.  Let’s take a closer look at this dilemma.

The finding that access to education increases/decreases with/without income is largely corroborated by a 2011 study by the US Department of Education.  The study states, among other things, that too many children in our country are denied the educational opportunities they need to succeed and that this is especially true for children from low-income families.  One interesting finding from the study noted that schools serving low-income students were significantly more likely to have teachers with less experience compared with those schools serving higher-income students.  Similarly, schools serving low-income children were significantly less likely to offer pre-kindergarten or other early learning programs compared with schools serving higher-income children.

In response to such findings, many politicians have reiterated the federal government’s critical role in ensuring equal education for all students.  Some lawmakers are calling for reform in the federal Elementary and Secondary Education Act.  Ultimately, the solution to this problem will be intricate and challenging.  Despite missing the mark in terms of delivering equal educational access and opportunity to all, we as a society must keep striving to attain this critical component of the American Dream.  Our future as a nation depends on it!

Satisfaction with Higher Education Stands to Improve

In a recent article that appeared in the New York Times, “Rich and Poor Further Apart in Education,”(February 10, 2012, pp. A1), a number of studies reported that the gap in achievement across the rich and poor is widening in the U.S.  In particular, these studies show that the academic achievement is no longer a function of race or ethnicity, but rather a function of income.  

The American Dream Composite Index (ADCI) survey results from the most recent survey confirm the findings discussed in the New York Times article. The ADCI collects data from a sample of 1,000 individuals on several dimensions including two related to Education.  Specifically, the ADCI measures the satisfaction with respect to ‘Educational Quality’ and ‘Access to Education’ among the individuals surveyed on a scale of 0-100 with 100 being complete satisfaction.   People with an income of more than 100K report their satisfaction with Access to Education at 81.36 compared to 61.93 individuals with an income of less than 100K. These numbers do not change if race or ethnicity is accounted for.  

However, the satisfaction with respect to Education Quality are much lower – people with income of greater than 100K report their satisfaction with Education Quality a 50.22 compared to 52.55 for individuals with an income of less than 100K.  The level of satisfaction with respect to Education Quality remains very low across various demographic groups classified by race and ethnicity.  It is interesting to note that while income level determines the level of access to education, the overall satisfaction with the quality of education irrespective of whether one is rich or poor is of concern for the U.S.

The Dream of an Advanced Education

The American Dream Composite Index was designed to measure the relative hopes, dreams, and aspirations of folks living in the United States.  It seems that one of the aspirations often mentioned when speaking of the Dream is access to a quality and advanced education.  The belief is that if one is able to achieve an advanced education (beyond high school) they will be that much closer to achieving the American Dream in comparison to those who do not.

Well, the ADCI collects many demographics of our survey respondents, including Education level.  One of the unique features of the ADCI (versus other sentiment measurements) is the ability to view aggregated data by these demographics.  Taking a quick peek at January 2012 ADCI results by several broad education level categories with completed degrees, we find:

• Full ADCI:                     63.96
• High School Graduate:   60.17
• College Degree:             64.88
• Graduate Degree:           67.45

The results show that, on average, as someone advances their education, they begin to realize more of their American Dream.  While it seems that education is the panacea for the American Dream, it certainly is NOT.  In future blogs, we will begin to look more closely at other demographic segments and their impact on the Dream.  Do Gender, Age, Ethnicity, Marital Status, etc. advance the Dream?  Stay tuned!

Men, Women and the American Dream

          According to the current American Dream Composite Index (ADCI) findings, men are achieving their American Dream at a slightly higher level than women—64.80 and 63.18 respectively.  Although it is still too early to determine the stability of this trend, we can look to past social science research to provide some context or perspective regarding this finding.

Historically, women compared to men have been observed to have more troubled psychological profiles.  Women typically report lower levels of internal control and morale and higher levels of depression compared to men.  One study by Carol D. Ryff found that across the six psychological well-being dimensions of self-acceptance, positive relations with others, autonomy, environmental mastery, purpose in life, and personal growth, women scored significantly higher than men on the positive relations with others and personal growth dimensions (no other significant differences across men and women were found).   

As we continue to regularly track the American Dream, we can pay special attention to differences across the sexes on the various ADCI indices (and sub-indices) in order to better understand the extent to which these two groups are realizing their American Dream.

February!

As we continue to collect survey responses for February’s ADCI, we look back over the past several months and wonder what is to come in the near future as it pertains to the American Dream.  After three straight months of decline, the American Dream saw a nearly one point gain in January’s ADCI.  So, as a nation, we moved 1% closer to fully realizing the American Dream.  This is quite a move but is it sustainable?  Based on recent experience, it would not appear so.  In fact, our trend shows that last month’s gain should be marginally reduced in February as we take into account the three month slide ending in January.  Any such correction should be not seen as a set-back, but rather an opportunity for our aspirations to grow gradually as our economy slowly recovers.

The value of the American Dream will prove difficult to predict in 2012 as many social and economic predictions foretell of difficult times ahead (http://www.boston.com/business/gallery/economic_predictions_2012/).  However, as we do recover as a nation, we believe that the American Dream Composite Index^TM will illuminate the areas of strength and weakness in the recovery.

The Importance of Common Values (Part 2)

In a continuation of last week’s blog concerning recent increases in both the trust in business and trust in government sub-indices of the American Dream Composite Index, we again refer to the report by the Business Roundtable Institute for Corporate Ethics in order to better understand how public trust in these institutions is created and maintained.  Beyond creating and sharing common values/interests with the public, businesses and government organizations must address the inherent power imbalances that often exist between individuals and these institutions.  Businesses and governments must work to assure that both risks and opportunities are shared fairly across both parties and, in cases where power imbalances are inevitable, work to limit feelings of vulnerability on the part of the public.  Any examples of how these elements of trust are either facilitating or hindering the degree to which you trust businesses and/or government institutions?

The Super Bowl of Trust?

With the Super Bowl having come and gone and an entire array of multi-million dollar ads up for debate, I wonder if the on-air mass marketing campaigns were really worth the cost and effort.  I suppose the idea of having over 150 million people see your product or service at the same time is exciting.  And while the job of teasing out the effectiveness of the advertisements will take time and some creativity, the efforts must be justified as all available spots were consumed.  However, not everyone believes it is a good investment (http://www.fool.com/investing/general/2012/02/05/watch-now-why-do-you-invest-the-motley-fools-super.aspx). 

Super Bowl advertisements are designed for general branding purposes and offer few definitive metrics for return-on-investment.  One metric that seems to be completely overlooked in this tool box is Trust in Business.  While one can perceive a clever ad, he or she can also spot a canard.  Rather than simply trying to build a brand based on clever ads, it seems that building trust in a business and its brand would be more beneficial in the long run.  For businesses, this is an exciting opportunity.  With trust in businesses severely diminished at the moment (as measured by the American Dream Composite Index^TM ), businesses could be richly rewarded for renewing the trust they’ve seen erode.   So, for me, it raises the question:  Is the return to prosperity for businesses rooted in the trust consumers have in them?  In the coming months (or years), the results of our survey will ultimately provide the answer!

Freedom in 2012

The American Dream, as we see it, is the amalgam of many dreams for folks coming to or living in the United States…35 significant dreams to be exact.  Each dream or dimension supports the overall idea of the American Dream and is valued separately.  As originators of the ADCI, we often get asked to identify the dream or dreams that are furthest along (have the highest score).  Well, since the beginning of our data collection, two dimensions have stood out and they are both freedoms:  freedom of expression and political freedom.  Through these tough economic times, both dimensions have seen scores well above 80.  That is, with each, we are well over 80% of the way to fully achieving these dreams in the United States.  While not perfect, these are by far the leaders among other dimensions. In fact our Trust in Government has averaged below 40 in this same time frame.  As we move forward in the 2012 election process, it does give us hope that our ability to express ourselves, vote freely, and make our own political choices represent the dreams that are most valued and farthest along.

The Importance of Common Values (Part 1)

In light of recent increases in both the trust in business and trust in government sub-indices of the American Dream Composite Index, we are left to ponder possible reasons for these changing sentiments.  While the precise reasons are likely many and varied, and fairly difficult to discern accurately, there are informed insights on the part of educators, business leaders, and students (among others) that may prove illuminating.  A recent report by the Business Roundtable Institute for Corporate Ethics, for instance, suggests that an important component of public trust in business is the creation of mutual values and interests across these two entities.  Are such common values and/or interests beginning to take shape?  If so, what are these values and interests?  And, if such values and interests still allude us, what should or will they be?

Trust in our Government. Who Saw that Coming?

As I was contemplating the content of our first blog entry, I just happened to be watching the returns of the Republican South Carolina primary.  I was a bit shocked at the last minute twist in the results, but then again nothing seemed out of place.  With our President experiencing his lowest approval rating to date and Congress receiving historically low approval ratings (even though the economy does appear to be recovering), it looks as if up is down and wrong is right in politics.  So, I wonder, what are we really approving (or not approving) of.

If one of our elected officials supports an idea, one single idea, that we stand in opposition to or, at the very least, don’t have the same zest for, do we disapprove of the overall job they are doing?  I know this seems a bit obtuse, but if one is simply asked to approve or disapprove of someone else, what factors are being considered?  Rather than focusing solely on a single notion - approval, I believe a better measure may be valuing the multifaceted trust we have in our elected officials.  That is, do we believe our government is acting fairly, being trustworthy, and working in our (its citizens) best interests.  The American Dream Composite Index measures this very notion, along with many more.  While other measures have shown a growing negative trend in government approval, our values for Trust in Government have been on the rise.  Since October 2011 this measure has increased steadily every month and now stands at a six month high.  This is a very positive statement at a very important time.  I suppose the next question should be, “If we are finally beginning to trust government, are we beginning to trust businesses as well?”.  Our survey says…...