The American Dream, once a beacon of hope promising prosperity and upward mobility, is increasingly viewed as an unattainable myth. The idea that hard work leads to success is being eroded by economic inequality, stagnant wages, and systemic barriers.

Capitalism has long been celebrated as the most effective economic system for wealth creation and market development. However, its inherent structural flaws make it susceptible to dysfunction over time. In the United States, unregulated capitalism has led to severe wealth inequality, price manipulation, the erosion of democratic values, and political polarization. Without significant reforms, the system will continue to serve the wealthy elite at the expense of the average American.

The Growing Wealth Gap

In an unregulated capitalist nation, after the rise of the median family, capitalism will work for at most 50 years. After that there will be disparities in wealth distribution. This is due to the pyramid structure of the capitalist system. Today, this inequality is stark: the top three billionaires in the U.S. hold more wealth than the bottom 160 million Americans combined.

Wealth concentration in the U.S. has reached historic levels. According to the Federal Reserve, the top 1% of Americans now hold more wealth than the entire middle class combined. The bottom 50% of Americans collectively own only 2% of the nation’s wealth, making upward mobility nearly impossible.

In the United States, wealth inequality has reached staggering levels, with the top three billionaires — Elon Musk, Jeff Bezos, and Mark Zuckerberg — amassing wealth that surpasses that of the bottom 160 million Americans combined. This concentration of wealth among a few individuals highlights the profound economic disparities that characterize modern American society.

As of early 2025, Elon Musk, CEO of Tesla and SpaceX, holds a net worth of approximately $433 billion. Jeff Bezos, founder of Amazon, possesses around $239 billion, while Mark Zuckerberg, founder of Meta (formerly Facebook), has a net worth of about $211 billion. Collectively, their combined wealth totals approximately $883 billion.

In contrast, the bottom 50% of American households — representing roughly 160 million people — hold a combined net worth that is significantly lower. According to data from the Federal Reserve, the bottom half of U.S. households hold about 2% of the nation’s total wealth. Given that the total household wealth in the U.S. is estimated to be around $159 trillion, this equates to approximately $3.18 trillion.

Stagnant Wages and Rising Costs

While worker productivity has increased by 61.8% since 1979, wages have only grown by 17.5%, according to the Economic Policy Institute. At the same time, the cost of essential goods, such as housing, healthcare, and education, has skyrocketed, diminishing workers’ purchasing power.

Homeownership is Out of Reach

The median home price in the U.S. has increased by over 500% since 1980, while wages have not kept pace. A study by Harvard’s Joint Center for Housing Studies found that nearly half of renters are cost-burdened, meaning they spend more than 30% of their income on housing.

The Student Debt Crisis

Higher education, once a pathway to upward mobility, has become a financial burden. Student loan debt has surpassed $1.7 trillion, with the average graduate owing over $30,000. Many young Americans are delaying homeownership, marriage, and starting families due to debt.

Declining Social Mobility

The U.S. now ranks lower than many developed nations in social mobility. A report from the Pew Research Center found that 43% of Americans born into the lowest income quintile remain there as adults, compared to just 30% in Canada and 26% in Denmark.

Healthcare Costs Crippling the Middle Class

The U.S. has the most expensive healthcare system in the world. A 2023 survey by the Kaiser Family Foundation found that 41% of Americans have medical debt, and medical expenses are the leading cause of personal bankruptcy.

The Decline of Stable, Middle-Class Jobs

Manufacturing jobs, once the backbone of the middle class, have been replaced by low-wage service jobs. The rise of gig work and automation has created economic instability, with fewer opportunities for secure, full-time employment with benefits.

Racial and Gender Wealth Gaps Persist

Systemic barriers continue to hinder economic progress for marginalized groups. The median wealth of Black households is only $24,100 compared to $188,200 for white households, according to the Federal Reserve. Women also earn 82 cents for every dollar a man earns, impacting their ability to build wealth.

Generational Inequality and Declining Optimism

Younger generations are worse off than their parents. A survey by the Wall Street Journal found that only 36% of Americans under 40 believe they will be better off than their parents, a sharp decline from previous decades.

Unregulated Capitalism and Rising Costs

Another critical issue is the unchecked rise in the cost of living. Essentials such as housing, healthcare, education, and groceries have skyrocketed in price, often outpacing wage growth. According to the Bureau of Labor Statistics, real wages have stagnated since the 1970s, while the cost of housing has increased nearly fourfold.

Corporate consolidation worsens this problem. Major industries—from agriculture to pharmaceuticals—are controlled by a handful of powerful corporations that dictate prices. For example, just four companies control 80% of the U.S. beef market, leading to artificially high meat prices. Similarly, pharmaceutical giants manipulate drug prices, as seen in the case of insulin, where prices have tripled over the past two decades despite production costs remaining low.

The Decline of Democracy: Oligarchy in Action

The excessive influence of money in politics has transformed the U.S. into a quasi-oligarchy, where policy decisions favor the wealthy elite rather than the general public. Princeton University researchers Martin Gilens and Benjamin Page found that economic elites and corporate interests have a significantly higher impact on policy outcomes than the average voter. Their study concluded that the U.S. is no longer a true democracy but a system where the rich wield disproportionate power.

The influence of money in politics has allowed corporations to shape policies that benefit the wealthy while neglecting the working class. The 2010 Citizens United ruling opened the floodgates for unlimited corporate spending in elections, leading to policies that exacerbate economic inequality.

Lobbying and campaign financing play a central role in this dynamic. Corporations and wealthy donors contribute billions to political campaigns, effectively buying influence. The 2010 Citizens United v. FEC Supreme Court ruling further exacerbated this problem by allowing unlimited corporate spending in elections. Consequently, policies benefiting large corporations—such as tax cuts, deregulation, and subsidies—consistently take precedence over those that would benefit the working class, such as minimum wage increases or universal healthcare.

Political Polarization and Legislative Gridlock

The ideological divide in American politics has deepened significantly. According to Pew Research Center, in 1994, 64% of Republicans were more conservative than the median Democrat, and 70% of Democrats were more liberal than the median Republican. By 2022, these numbers had increased to 93% and 95%, respectively. This increasing polarization has led to legislative gridlock, where major bills pass strictly along party lines, such as the Affordable Care Act (2010) and the Tax Cuts and Jobs Act (2017).

Moreover, Americans are now more likely to align their social circles, places of worship, and neighborhoods with their political beliefs, further deepening divisions. This "team mentality" turns politics into a zero-sum game, where parties prioritize defeating their opponents rather than enacting meaningful policies.

The Case for a Partyless Democracy

One radical yet compelling solution to these systemic issues is a partyless democracy. You have created a political system that polarizes the public. In no other aspect of our lives do we declare our intent to address challenges and pursue objectives by forming rival teams with the aim to destroy the others. It’s an absurd proposition. It is a dumb way to try to run a government. America urgently needs a partyless democracy, serving as the foundation of a system rooted in meritocracy.

In a partyless democracy, the traditional concept of an official opposition or minority party ceases to exist. Instead of a structured rivalry between governing and opposition parties, every legislator functions independently, scrutinizing proposals based on their own judgment rather than party allegiance. This means that every member of Congress effectively acts as an opposition, ensuring that no single group can dominate decision-making.

For a bill to pass in such a system, it must genuinely demonstrate its merit, proving beyond doubt that it serves the interests of the people rather than advancing a partisan agenda. Without the influence of party politics, legislation must stand on its own merits, compelling lawmakers to evaluate proposals based on their effectiveness and public benefit rather than party loyalty.

Furthermore, if a bill is well-crafted and truly beneficial, there would be little reason for lawmakers to reject it. Since no party seeks to score political points against a rival, the focus shifts entirely to enacting policies that the people can support and claim ownership of. In this way, a partyless democracy could foster a more transparent and merit-based legislative process, where the quality of a bill determines its success rather than political maneuvering.

Conclusion: The Need for Systemic Reform

American capitalism, in its current form, is failing the people it was meant to uplift. Wealth inequality continues to grow, essential costs are rising beyond affordability, democratic values are being eroded, and political polarization is paralyzing governance. These issues are not inherent to capitalism itself but rather the result of unregulated and exploitative practices.

To restore economic fairness and democratic integrity, the U.S. must implement strict regulations on wealth accumulation, corporate power, and political financing. Furthermore, shifting towards a meritocratic and partyless democracy could help break the cycle of partisan gridlock and special-interest dominance.

If America truly seeks to fix its systemic failures, it must embrace a fundamental overhaul—one that prioritizes the interests of the people over the power of the few. The question remains: will Americans rise to demand these changes, or will they continue to watch as their democracy and economy crumble under the weight of unchecked capitalism?