The American Dream Survey: Hope and Fear in Working America Prepared by Lake Research Partners 1
Summary Description of Methods Interview Dates: August 14 and August 20, 2006. 800 interviews of a random sample of non-supervisory workers nationwide. Sampling error is +/- 3.5% for the full sample, higher among split sampled questions. Non-supervisory workers are comprised of workers who are not: fulltime students, nor retired persons, nor business owners or CEOs, company executives, managers, or professionals such as doctors or lawyers, but who are: either employed or looking for work, work at least 20 hours per week if employed, and earn $100,000 per year or less. 2
Strategic Summary Overview The American working middle class believes in and aspires to the American Dream. But wages and the rising cost of living and rising debt are putting the American Dream at risk. Quality, affordable health care is a critical component to the American Dream. In a stunning change from past generations, a majority do not believe that the next generation of Americans will be better off than the current generation. Americans are remarkably united in their view of the American Dream, based on family and security, not on wealth. At the same time, few are optimistic about the direction of the last four years and the future. The working middle class believe that the government, the electoral process, and unity in a union can bring about change. 3
MOOD AND DIRECTION OF THE COUNTRY AND THE ECONOMY: Workers see the country as being on the wrong track and there is significant economic anxiety. 4
Workers are very pessimistic about the direction of the country and the economy. Generally speaking, do you think that things in this (country/economy) are going in the RIGHT DIRECTION, or do you feel things have gotten pretty seriously off on the WRONG TRACK? DIRECTION OF THE COUNTRY DIRECTION OF ECONOMY WRONG TRACK 63% (don't know) 11% WRONG TRACK 63% (don't know) 9% RIGHT DIRECTION 26% RIGHT DIRECTION 28% 5
Jobs and the economy is the top concern for workers, with energy and gas prices, moral values and the war in Iraq in the next tier. I am going to read you a list of concerns that some people have. Please tell me which one of these you are most concerned about? 6 Jobs and the economy Energy and gas prices Moral values The war in Iraq Education Social Security and retirement security Taxes and government spending Health care Immigration Outsourcing jobs overseas Homeland sceurity and defense Crime and drugs 2% 3% 3% 5% 7% 11% 10% 10% 9% 8% 8% 19%
Wages not keeping up with cost of living is the top economic concern, followed by rising gas prices and health care costs. Thinking specifically about the economy, what two things are you personally worried about the most? Are they Wages not keeping up with cost of living 34% Rising gas prices Rising health care costs Having to work more to keep up with cost of living Losing your job A secure retirement Expenses like child care, education, or college tuition Paying taxes 16% 14% 13% 11% 11% 27% 29% 7 Paying off debt 8%
A majority of workers feel that their wages have not kept up with the cost of living. Sixty-one percent of independents feel this way. Are your wages keeping up with the cost of living? 60% 50% 47% 51% % No Dem 56% 40% Ind 61% 30% Rep 36% 20% 10% 8 0% Yes No
Over a third of workers have either recently or currently been been without health care coverage. Recently or Currently Without Health Care Coverage 70% 65% 60% 50% 40% 35% 30% 20% 10% 9 0% Without With
Three out of ten workers have taken on debt to pay for necessities like, food utility costs and gasoline. 10 Twenty six percent of whites, 38% of African Americans, and 46% of Hispanics incurred debt.
A majority of workers now believe they will retire at an older age than they expected. Do you think that you will retire younger, the same age or older than you estimated 5 years ago? 60% 55% 50% 40% 30% 28% 20% 10% 10% 11 0% Younger Same Age Older
Health care costs, losing health care coverage, not having enough money for retirement, and not being able to keep up with bills are the top immediate concerns for the working middle class today. Now I am going to read you a list of different concerns that working people might have in America today. For each one, even if it is not a problem right now, please tell me how much of a concern it is for you a very serious concern, a serious concern, a minor concern, or not a concern at all. MINOR/NOT AT ALL VERY/SERIOUS Not being able to afford health care when you and your family need it -21% -11% 51% 77% Losing your health care benefits -25% -15% 45% 72% Not having enough money for retirement -22% -8% 42% 77% Not being able to keep up with bills -30% -14% 41% 69% Losing my job and not being able to find one with same pay and benefits Losing your pension benefits Having your standard of living slip further Losing your home or never owning a home Not having enough time to spend with your family -33% -35% -31% -39% -36% -18% 38% -20% 37% -13% 36% -20% 36% -19% 34% 65% 59% 68% 59% 62% 12
THE AMERICAN DREAM: The American Dream means comfortable, debt-free living, providing for children, quality health care, and a dignified retirement. 13
Workers volunteer having a good job, making a comfortable living, being debt free and being financially secure as their view the American dream. Only 1% say being wealthy. What does the American Dream mean to you? 14 What does the American Dream mean to you? (Coded and collapsed) Having a good job/make a comfortable living/financial security/debt free 37% Personal Freedom 15% Own a home/have a good place to live 15% Raising a family/caring for children 14% Opportunity/promise 9% Don t know/not sure 9% Live in peace without terrorism/safety 6% Access to health care/be healthy 6% Success/Goal Achievement 5% Happiness 5% Access to good education/college 4% A worry-free life 3% A return to traditional moral values/religion 3% There's no longer any American Dream 3% Good Country/U.S. Improving/Patriotic Mentions 3% Equality / Equal Treatment/Rights 3% Freedom of speech and expression 2% Respect for others/tolerance of diversity 2% Life/Living Each Day 2% Affluence/being wealthy 1%
In their own words, The American Dream is: What does the American Dream mean to you? (Example verbatim quotes) Keeping your head above water, not worry about going into debt and trying to survive. To have a stable home, career, wages that match the cost of living, be able to afford gas for the automobile, and being able to provide for your family's welfare and well-being. Equal opportunity for public education, higher education, employment and economic growth, enabling one to become a home owner. Freedom - right to an education, right to excel; the sky is the limit, opportunity to better yourself. Taking care our children and our children's children. Being able to watch my children do better than me. Work hard, get a decent job, have secure health care and benefits. It means for every person to have a home, health care, & food. To be able to survive after retirement, to be able to hold on to what I have after I retire. To not have war and live in peace without terrorism. 15
Workers rated being proud of their job as the most important achievement for reaching the American Dream, followed by ensuring their children s future, owning your own home, having quality affordable health care, and having a secure retirement. Now, thinking about the American Dream, I m going to read some achievements that some people say are important for reaching the American Dream. For each one, please rate how important YOU think it is for reaching the American Dream on a scale from 0 to 10, where 10 means it is extremely important, and 0 means it is not important at all, and 5 is neutral. You can choose any number between 0 and 10. Importance of Various Achievements for Reaching the American Dream Mean Score (0-10 scale) % Rating it a 10 Being proud of the work you do 8.9 65% Being able to ensure your children have a good future 8.8 66% Owning your own home 8.7 65% Having affordable quality health care that you can depend on 8.7 61% Having a secure and dignified retirement 8.6 59% Feeling secure in your job 8.6 57% * Sending your children to post high school education such as college or technical school 8.5 60% Being free of credit card debt 8.5 60% 16 Having your voice heard in the political process even if you are not wealthy or powerful 8.4 58% Being able to afford and to have the time to take care of aging parents or relatives 8.4 51% *Helping pay for your children s post high school education such as college or technical school 8.3 54% Being able to work less and spend more time with your family and friends 8.2 50% That all working people are treated with respect and dignity 7.9 51% If you work hard and play by the rules you will get ahead 7.6 39% One parent being able to afford to stay at home to raise their young children if they want to 7.5 41%
Younger and middle aged workers put slightly more emphasis on ensuring their children s future. Older workers put relatively more emphasis on owning their own home. Now, thinking about the American Dream, I m going to read some achievements that some people say are important for reaching the American Dream. For each one, please rate how important YOU think it is for reaching the American Dream on a scale from 0 to 10, where 10 means it is extremely important, and 0 means it is not important at all, and 5 is neutral. You can choose any number between 0 and 10. Importance of Various Achievements for Reaching the American Dream by Age Group Mean 10 Mean 10 Mean 10 Under 40 Under 40 40-49 40-49 50+ 50+ Being able to ensure you own children have a good future 9.0 69% 9.0 70% 8.6 60% Being proud of the work you do 8.9 64% 8.9 68% 8.9 65% Owning your own home 8.7 66% 8.8 62% 8.7 66% 17 Having quality affordable health care that you can depend on Having a secure and dignified retirement 8.8 61% 8.7 60% 8.5 62% 8.7 58% 8.6 60% 8.5 61%
THE FUTURE OF THE AMERICAN DREAM: The American Dream is at risk. 18
Workers overwhelmingly believe that working families are falling behind. Now I am going to read you some statements and I want you to tell me if you agree or disagree with each statement.- No matter what you hear about the economy, working families are falling behind. 81% Agree 56% 25% 81% 19 Darker colors=intensity 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Only 14% of workers believe they have obtained the American dream. Thinking about the American Dream and what that means to you and your family, do you think it is obtainable, you have already obtained it, you may not be able to obtain it, you will not be able to obtain it, or you are not sure. 60% 50% 40% 51% 36% 30% 20% 14% 15% 9% 12% 10% 20 0% It is obtainable Have already obtained it May not be able to obtain it Will not be able to obtain it Not sure
Workers of all races have similar views of being able to obtain the American Dream. Status of the American Dream by Race White African American Hispanic It is obtainable 50% 45% 51% Have already obtained it 15% 13% 8% May not be able to obtain it 17% 14% 14% Will not be able to obtain it 9% 8% 11% Not sure 9% 20% 15% 21
Workers see the economy as either stagnant or in decline. When you think about the national economy today, do you see (ROTATE) _increasing opportunity, _stagnation or _increasing decline? 60% 50% 43% 40% 30% 21% 22% 20% 10% 22 0% Increasing opportunity Stagnation Increasing decline
A plurality of workers of all ages see the national economy as declining. State of National Economy by Age Under 30 30-39 40-49 50-60 Over 60 Increasing opportunity 23% 21% 17% 23% 25% Stagnation 16% 19% 29% 25% 16% Increasing decline 44% 37% 43% 42% 47% 23
Only slightly more than a third of workers say they are better off economically than they were four years ago. A majority have either seen no gain or lost ground. Would you say you and your family are economically better off or worse off than you were four years ago or would you say you are about the same? 70% 60% 50% 40% 38% 32% 29% 30% 20% 10% 0% 17% 13% Better Same Worse 24 * Darker colors show intensity
Workers are uneasy about their financial future. Which of the following words best describes how you feel about your financial future?- Optimistic, Angry, Cautious, Confident, Worried, Sad, Hopeful, Disappointed 70% 60% 50% 40% 30% 37% 51% 20% 10% 10% 25 0% Positive-Optimistic,Hopeful Negative-Angry, Sad, Disappointed Uncertain-Cautious, Worried Positive Negative Uncertain
Workers are also very pessimistic about their children s economic future. Thinking about the next generation of Americans who are children today, the way things are going, do you think economically they will be better off, worse off, or about the same as the generation of adults who are working today? 60% 50% 51% 40% 30% 20% 18% 27% 10% 26 0% Better off About the same Worse off A majority (58%) of college educated workers and a plurality of non-college educated workers (48%) are pessimistic about their children s future.
Workers are even more concerned about the state of the American Dream in the country today. They use terms like uncertain, and cautious to describe its current status. Which of the following words best describes how you feel about the American Dream and the country? - Optimistic, Excited, Angry, Cautious, Confident, Uncertain, Worried, Sad, Hopeful, Disappointed, Proud, Frustrated 70% 60% 50% 40% 35% 44% 30% 21% 20% 10% 27 0% Positive Negative Uncertain Positive-Optimistic,Hopeful, Proud, Confident, Excited Negative-Angry, Sad, Disappointed, Frustrated Uncertain-Cautious, Worried, Uncertain
Workers are divided on how they feel about the American Dream and their family. Which of the following words best describes how you feel about the American Dream and your family? - Excited, Angry, Cautious, Confident, Uncertain, Worried, Sad, Hopeful, Disappointed, Proud, Frustrated 70% 60% 50% 40% 39% 41% 30% 20% 17% 10% 28 0% Positive-Excited,Hopeful, Proud, Confident Negative-Angry, Sad, Disappointed, Frustrated Uncertain-Cautious, Worried, Uncertain Positive Negative Uncertain
REVIVING THE AMERICAN DREAM: Working people are united in their positive views of government, elections, and unions as solutions to the problems. 29
All workers strongly believe that they should have the right to join a union including 58 percent of Republican strongly agree with idea. Now I am going to read you some statements and I want you to tell me if you agree or disagree with each statement.- In America, everyone should have the right to join a union, without fear of retribution or intimidation from their employer. % Agree Total 62% 86% Democrats 67% 89% Independents 61% 88% Republicans 58% 84% 30 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Darker colors=intensity
The working middle class including a majority of Republicans, believes that the government, not just the free market, should provide health care insurance. Now I am going to read you some statements and I want you to tell me if you agree or disagree with each statement.- We cannot just depend on the marketplace, government has a responsibility to make sure that Americans have health care insurance. % Agree Total 61% 82% Democrats 68% 86% Independents 54% 79% Republicans 53% 75% 31 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Darker colors=intensity
Workers feel that if they became more politically active things would change for the better. Now I am going to read you some statements and I want you to tell me if you agree or disagree with each statement.- If working people got more politically active things could be changed for the better. % Agree Total 54% 85% Democrats 57% 84% Independents 51% 84% Republicans 54% 87% 32 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Darker colors=intensity
Both younger and older workers think joining a union would make things better for working people. Seventy nine percent of younger workers agree. Now I am going to read you some statements and I want you to tell me if you agree or disagree with each statement.- If more working people working in the same industry joined together in unions, things could be better for working people. (Split Sampled) % Agree Total Under 30 30-39 40-49 50-60 Over 60 38% 40% 29% 43% 40% 36% 68% 79% 61% 69% 68% 57% 33 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Darker colors=intensity
Key Findings Mood and Direction of the Country and the Economy Two-thirds of workers feel both the country and the national economy have gotten off on the wrong track. Every single demographic group is net negative both on the direction of the country and on the national economy. The majority of workers also feel the opportunities in the economy are either declining or stagnant. Only a fifth say opportunities are increasing. A plurality of workers name jobs and the economy as their top concern, followed by energy and gas prices. Wedge issues like immigration and moral values are significantly less of a concern than economics. Specifically, the most important economic issues on the minds of workers are wages not keeping up with the cost of living, rising gas prices, and rising health care costs. Independent voters are particularly worried about wages not keeping up with the cost of living. 34
Key Findings Workers Economic Anxieties Less than four in ten workers feel they are better off now then they were four years ago. The vast majority of workers feel that no matter what you hear about the economy, working families are falling behind. Almost a third had to incur debt to pay for necessities like food, utilities, and gasoline. Thirty-five percent or workers have recently or currently lost their health care coverage. Hispanics are most likely to have lost their health care coverage. A third of workers have no retirement plan outside of Social Security. Minorities are less likely to have retirement plans like pensions and 401K plans. Half of Hispanic workers have no retirement plan. A majority of workers are concerned about their economic future. They describe themselves as feeling cautious or worried about their economic future. 35
Key Findings Workers Economic Anxieties Reinforcing this perception is the fact that a majority of workers say they will retire older than they had estimated 5 years ago. The top economic concerns are not being able to afford health care, not having enough money for retirement, losing their health care benefits, not being able to keep up with bills, and having their standard of living slip further. 36
Key Findings The American Dream American workers strongly identify with the general concept of the American Dream and still believe it is obtainable. However, they also believe it is at risk for future generations. When workers are asked in an open-ended question what the American Dream means to them, having a good job and making a comfortable living is the top response. Notably, almost no one mentions being wealthy or affluent. When asked which achievements define the American Dream, workers say that being proud of the work you do, ensuring your children have a good future, and owning your own home is how the American dream is achieved. Workers are divided on the American Dream and how it relates to their families. A plurality of workers are uncertain about the status of the American dream in the country as a whole. Only a third have positive feelings about the American Dream in America today. 37 Hispanic workers are more likely to believe they will achieve the American Dream. African Americans are more ambivalent.
Key Findings Reviving the American Dream Workers embrace a number of proposals that will help strengthen and revive the American Dream. Workers strongly believe that they should have the right to join a union and that being in a union would make things better for working people. Workers also believe that becoming more politically active would change things for the better. Additionally, workers believe that the government has a responsibility to provide health care coverage, and not leave the health care system solely in the private sector. All of the proposals get strong support from majorities of Republican workers. 38
Demographics of Non- Supervisory Workers DEMOGRAPHICS Women 46% Under 45 52% College graduates 32% Married 60% Have children under 18 40% PROFILE OF NON-SUPERVISORY WORKERS IN AMERICA REGION Northeast 19% Midwest 23% South 36% West 23% PARTY IDENTIFICATION Democrat 42% Republican 23% Independent 23% Other/nothing 13% RACE White 67% Latino 13% African-American 12% Asian/Pacific 3% HEALTH CARE Currently have health insurance 82% Everyone in family currently has health insurance 70% Someone in family has been without coverage in last 3 years 51% TOP CONCERNS Jobs/economy 19% Energy/gas prices 11% Iraq war 10% Moral values 10% Education 9% RETIREMENT Pension and 401(k) 19% Pension only 15% 401(k) only 29% None 34% INCOME Under $30K 44% $30K-$50K 32% $50-$100K 22% JOBS One job 83% More than one job 13% Unemployed and looking 10% Union members 13% 39