Generation X and Its Evolving Experience with the American Dream
Generation X demonstrates how the definition of the American Dream does not only evolve over time; it also evolves in the minds of individuals as they age. Generation X is experiencing its own version of the American Dream. While conquering life's challenges, Generation X shows itself to be a resilient generation, one whose members long ago learned to rely on themselves. As they continue to pursue happiness alongside other groups, this spirited and driven generation likely will not allow the American Dream to elude them. key words: Generation X, Baby Boomer, American Dream, happiness, generation, good life Generation X and Its Evolving Experience with the American Dream By Patty David, Vicki Gelfeld, and Andreina Rangel Events that shaped Generation X have shifted its future focus from economics to experiences. GENERATIONS Journal of the American Society on Aging 78 Fall 2017 and family life," and "owning a home" are still significant parts of the Dream, although the ranking has slightly shifted. Among Generation X, the same pattern holds true, with one main difference concerning "having a financially secure retirement" and "being financially secure enough to have ample time for leisure purposes." These concepts have dropped or remained the same in ranking for this generation, while they have remained fairly stable or increased among the overall population. This provides a glimpse into how Generation X thinks about finances (discussed in greater detail below) an underlying enabler of the overall American Dream. Underpinning the American Dream is the most basic definition of a better life earning more money and enjoying higher living standards than your parents. Moreover, for 54 percent of Generation X, "doing better than your parents" is a significant part of the American Dream. However, for most Americans, this important aspect of the American Dream seems increasingly harder to achieve. In 2014, only 42 percent of the adult population thought they had better chances to succeed than their parents, down 30 percentage points from the year 2000 (Kantar Futures, 2015) Furthermore, consistent with consumer sentiment, a study conducted by Chetty and colleagues shows children's prospects of earning more than their parents have fallen from 90 percent to 50 percent over the past half century (Chetty et al. 2016) Generation X is the first generation in U.S. history in which a majority will not be better off than their parents. Only about a third of Generation X has more wealth than their parents had at their age (Scotti, 2014) Additionally, they are not as concerned about upward mobility as they are with being able to pay the bills at the end of the month more than half (56 percent) report "living paycheck to paycheck," compared to 46 percent of Baby Boomers. Generation X is the genTable 1. Components of the Gen X American Dream Source: Roper Organization and The Wall Street Journal, 1987. Children's prospects of earning more than their parents have fallen from 90 percent to 50 percent. Figure 1. Fraction of Children Earning More Than Their Parents Source: Chetty et al. 2016 Generation X: From Fiction to Fact, and Still a Mystery Volume 41 .Number 3 79 eration more likely to think it lacks financial security, with 39 percent reporting that their financial security is bad, compared to 29 percent of Baby Boomers (Kantar Futures, 2016) When it comes to the pursuit of happiness, upward mobility may be something that members of Generation X can do without, but the ability to feel financially secure may be another. When asked what would most increase their happiness, roughly four in ten (39 percent) respondents ranging in ages 40 to 59 in the AARP Life Budget Survey cited financial security. Furthermore, one third reported that a lack of financial security was the main obstacle to their prioritizing the things in their lives that would make them happier (AARP, 2014) Life, liberty, and the pursuit of happiness clearly depend in large measure on financial stability. Analysis of GfK Roper's "good life" data on consumer aspirations suggests that changing definitions of "the good life" represent the collective spirit of the time and place (GfK Consumer Life [Roper Reports(r) 2014) and are a good representation of the meaning of the American Dream. Comparisons of "good life" aspirations in their youth to how they define the "good life" today, begin to depict how Generation X is experiencing the American Dream. Understanding a generation's time, place, and associated collective spirit sheds light on what lies behind the lens through which the generation views the American Dream. Baby Boomers and Their American Dream To understand Generation X's experience with the American Dream, it's helpful to consider the Baby Boomers' experience. Baby Boomers entered the scene post World War II, at a time of widespread government subsidies. Their families had access to housing, good educational choices for their children, and good jobs (Owram, 1997) They were reaping the benefits of a generous G. I. Bill. When the Baby Boomers entered their formative years, social change and movement were the norm. They grew up participating in antiwar protests, drug experimentation, sexual freedoms, and the Civil Rights Movement, as well as the women's movement (Schuman and Scott, 1989) They became the wealthiest generation, on average, in U.S. history and the first to grow up expecting the world to consistently improve over time (Jones, 1980) Many owned homes, had good jobs, and could afford an education and healthcare. They could also generally afford to experience the world, travel in luxury, dine out, attend concerts and big sports events, indulge themselves with the comfort of a vacation home, high end cars, and pamper themselves at five star resorts. Their excessive consumerism (Pinker, 2011) and indulgence in experiences took the meaning of the "good life" to the next level. Looking at the "good life" components for Baby Boomers in their youth, elements such as "happy marriage," "children," "an interesting job," and "travel abroad," which are more experiential in nature, were at the top of the list. Today, these Table 2. Components of the Good Life Source: GfK Consumer Life (Roper Reports(r) 2014. GENERATIONS Journal of the American Society on Aging 80 Fall 2017 items have been replaced by "having good health," and "having a financially secured retirement" (GfK Consumer Life [Roper Reports(r) 2016) That evolving sentiment was evident in an AARP study measuring people's "Fantasies and Fears." While one third (34 percent) of overall respondents in the study think their health will be the most important challenge they will face within the next five years, Baby Boomers are twice as likely as Generation Xers to say so, perhaps reflecting the health challenges that often arise as one ages (AARP, 2016) The Generation X American Dream Generation X entered the scene nineteen years after the birth of the first Baby Boomer, and the world that unfolded in the ensuing years would look very different. This cohort grew up during a time of shifting societal values reflected in such trends as rising divorce rates and more mothers participating in the workforce, resulting in many becoming "latchkey kids" who were left to fend for themselves for long hours each day (Howe and Strauss, 1993) They were not coddled for every disappointment. Autonomy and self reliance, rather than respect for authority, was the result. Generation Xers grew up in an era of emerging technology and political and institutional uncertainty. They watched Watergate unfold, Three Mile Island explode, and the Bhopal gas leak happen; they waited in long lines at the gas station in the backseats of their parents' cars during the oil crises of the 1970s, watched with bated breath to see if the hostages would survive the Iranian hostage crisis, and were immersed in coverage of the Clinton Lewinsky debacle. Meanwhile, they also experienced great technological advances, such as when the mimeograph machine's blue ink was replaced by the high speed copier. A document could be faxed in seconds compared to the previous thirty plus minutes, heavy adding machines were replaced with the handheld calculator, and, of course, the digital revolution got underway, starting with computers becoming an inhome desktop appliance. Amid these societal dynamics, Generation X was more likely to see the "good life" as "having lots of money," "having a college education," "traveling abroad," "having really nice clothes," and "owning a vacation home." Their aspirations could be explained, in part, by their consumer values. At the time, "ambition" ranked higher for them than for other generations (GfK Consumer Life [Roper Reports(r) 2016) Still other aspects of the environment, as Generation X grew older, contributed to the generation's orientation. This pragmatic generation came into adulthood in the Reagan years, when the bull market was beginning. Gen Xers experienced a Dow Jones rise from 824.57 in January 1980 to 1211.57 in December 1984 (FedPrimeRate.com, 2017) Although a major recession (from July 1981 to November 1982) preceded the Reagan bonanza, the growing economy fed a "materialistic aspiration" that manifested in consumer desire for everything from BMWs to designer jeans. Average household expenditures grew from $8,270 in 1972 to $21,975 in 1984 (not adjusted for inflation) (U.S. Department of Labor, 2017) Aspirations were driven by excess and a debt fueled lifestyle, and "more and more" was the mantra of the day (Kantar Futures, 2016) Within this environment, Generation X adopted a more materialistic vision, fed by perceived pressure to make money and be successful (Kantar Futures, 2000) As a group, they were putting their faith on tangible outward signs of that success and focusing on acquiring possessions. Then came the shock. The Great Recession hit just as many in Generation X were bu