The Secret to Reclaiming the American Dream

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In 1940, a child born into an American household had a 92 percent chance of making more money than their parents. But a child born in the 1980s has just a 50 percent chance of surpassing their parents’ income. In 40 years, the American dream went from being a widespread reality to essentially a coin toss.

No economist has done more to explain why than Raj Chetty. His team at Harvard University has spent much of the past decade mapping inequality of opportunity across the country. They’ve shown that in some parts of the country, such as Minneapolis, the American dream is very much alive, while in other parts, the poor are trapped in poverty for generations. Why are some neighborhoods in America like Miracle-Gro for opportunity? Is it parenting, social connections, pure economics, the presence of high-quality schools, or something else entirely?

In an episode for , Chetty and I talked about how elite colleges aren’t doing enough to help America’s poor, why moving to the right neighborhood is one of the most important decisions that parents can make