Failure of the American Dream in National Economic Collapse

Failure of the American Dream in National Economic Collapse

Introduction

Since the country’s establishment, the American Dream—the conviction that anybody, regardless of background, may achieve success and prosperity through labor—has been a pillar of American culture. The nation’s economic downfall has tested the American Dream since the Great Recession of 2008. The potential of realizing the American Dream has become more remote for many Americans due to job losses, pay stagnation, and increasing debt, making it more difficult for them to accumulate wealth and improve their quality of life. The failure of the American Dream as a result of the economic crisis will be examined in this article.

Event/turning point history

The American Dream offers hope for a better life and more chances for everyone and has long represented the country’s success. It was viewed as holding out the possibility of a place of abundance and opportunity, where tenacity and perseverance could result in success and a better life for future generations. Unfortunately, this hope was dashed when the United States experienced the National Economic Collapse of 2008. The economy had been growing, and the housing market was surging in the years before the crash. People were taking advantage of the low-interest rates by using mortgages that they could barely afford to make purchases of properties that they could not afford. Banks gave hazardous subprime loans to borrowers with terrible credit because they thought they could still profit from the default of the loans (Adler & William).

Wall Street companies simultaneously packaged and sold these subprime mortgages to investors, who thought they were secure investments. Unsustainable price increases and people taking on more debt than they could bear led to a “bubble” in the housing market. The bubble eventually popped when the subprime mortgage crisis struck, and borrowers started to fail on their loans in 2008. The housing market shrank, banks began failing, and the stock market fell, as a result, having an impact on the entire economy. The Troubled Asset Relief Program (TARP), which funded banks and other financial institutions to stabilize the economy, was implemented by the government in response to the crisis. Sadly, this was insufficient to stop the collapse.

The Great Recession of 2008 was a significant turning point in American history. It signaled the end of the American Dream for millions as they lost their homes, jobs, and money. It also emphasized the necessity of more stringent banking industry laws and improved Wall Street business oversight. The nation’s mentality was severely impacted by the collapse as well. It served as a wake-up call to the fragility of the American Dream and the realities of economic instability for many. It demonstrated that even the best-laid plans could fail occasionally and that persistence and hard work alone were insufficient to ensure success (Goodman, Laurie & Mayer).

A pivotal moment in American history, the National Economic Collapse of 2008, had a significant impact on the country and its citizens. It served as a sobering reminder of the limitations of the American Dream and the importance of being ready for anything. Despite this, the country’s and its people’s fortitude is evidence of the strength of the American Dream and its capacity to endure even the worst economic times. The ramifications of this event, which marked a significant turning point in American history, can still be seen today. It serves as a reminder of the value of sound financial management and stable economic conditions, as well as the reality that the promise of a better life is not always attainable. The National Economic Collapse of 2008 served as a wake-up call for the country, demonstrating that despite our best efforts, even the best set plans may go wrong.