Dream Hoarders The Dangerous Separation of the American

Dream Hoarders: The Dangerous Separation of the American Upper Middle Class UNLV, Brookings Scholar Lecture February 8 th, 2017 Richard V. Reeves Senior Fellow, Economic Studies The Brookings Institution

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16 Pelosi/Van Hollen: Affluent, liberal districts

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18 “This proposal was targeted at what may be the single most dangerous constituency to anger: the upper middle class wealthy enough to have influence, and numerous enough to be a significant voting bloc. ” Paul Waldman, Washington Post

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20 What class are you?

21 We are the 99%!! Or not….

22 Not just the 1%. .

23 Sticky ends: relative mobility

24 Sticky ends: relative mobility

25 Sticky ends: relative mobility

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27 Further to fall in U. S. A.

28 Wealth status across generations

29 A market meritocracy? • Upper middle class status is “sticky” across generations • This is true for income, wealth, etc. • Why? • Reason 1: Education and skills • Reason 2: Opportunity hoarding

30 A market meritocracy? • Upper middle class status is “sticky” across generations • This is true for income, wealth, etc. • Why? • Reason 1: Education and skills • Reason 2: Opportunity hoarding

31 Educational status across generations

32 Upper middle class = BA

33 Which college? Depends on your class (social class, that is)

34 An upper middle class monopoly?

35 Class divide in college classes

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38 Now, back to those 529 s…

39 Thanks, Uncle Sam!

40 A market meritocracy? • Upper middle class status is “sticky” across generations • This is true for income, wealth, etc. • Why? • Reason 1: Education and skills • Reason 2: Opportunity hoarding

41 Opportunity Hoarding: A Guide • Exclusionary zoning • Legacy admissions • Internship opportunities

42 The rent is too darned high

43 Maybe because of this?

44 Hey, what happened to all that space?

45 Legacies: “A slight tip”?

46 Dream Hoarders: So What? • • Reduce unintended pregnancies & births Invest in home visiting Pay K-12 teachers in tough schools more Shift $ from 4 -year to community colleges End legacy admissions Open up internships & work experience Curb exclusionary zoning

47 Make the rich pay! Oh, wait….

48 “The moral indignation of the age [the Progressive Era] was by no means directed entirely against others. It was in a great and critical measure directed inward. Contemporaries who spoke of the movement as an affair of the conscience were not mistaken. ” Richard Hofstadter

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50 @richardvreeves www. tinyletter. com/reevesweekly