Who Stole the American Dream?

Who Stole the American Dream? By Hedrick Smith Random House, 2012 Pulitzer Prize-winning journalist Hedrick Smith investigates the systematic dismantling of America's middle class over the past four decades. Through interviews and extensive research, he traces the economic and policy decisions that led to the concentration of wealth among corporate executives and shareholders. The book examines key historical turning points, including the Powell Memorandum of 1971 and the shift toward "wedge economics" in the 1980s. Smith documents how specific legislative changes, corporate policies, and Supreme Court decisions reshaped the relationship between businesses and workers. Smith presents a detailed analysis of how the traditional social contract between employers and employees eroded, replacing an era of shared prosperity with one of increased inequality. The narrative spans from the prosperous post-World War II period through the financial crisis of 2008 and its aftermath. This work serves as both a historical record and a critique of fundamental changes in American capitalism, examining the transformation of an economic system that once promoted broad-based opportunity into one that increasingly concentrates wealth at the top.

Readers appreciate Smith's detailed research and clear explanation of economic policies since the 1970s that impacted the middle class. Many point to his breakdown of specific legislative changes and their effects on wages, unions, and corporate power. Positive reviews focus on: - Historical context linking past decisions to current inequality - Corporate case studies showing shifts in business practices - Clear explanations of complex financial concepts Common criticisms: - Too much focus on policies, not enough solutions - Repetitive points across chapters - Liberal bias in analysis of causes Review Scores: Goodreads: 4.1/5 (1,200+ ratings) Amazon: 4.4/5 (280+ ratings) Several readers noted the book helped them understand their own financial challenges better. One Amazon reviewer wrote: "Finally makes sense of why my parents had an easier time affording a home than I do." Critics countered that Smith oversimplifies complex economic forces, with one Goodreads review stating "reduces decades of global changes to simple political choices."

The Price of Inequality by Joseph Stiglitz Nobel laureate economist presents data and analysis showing how market forces and policy decisions created America's wealth gap.

Capital in the Twenty-First Century by Thomas Piketty Through historical economic data spanning centuries, Piketty demonstrates how capital concentration leads to increasing inequality.

Winner-Take-All Politics by Jacob S. Hacker The authors trace political decisions and lobbying efforts that reshaped American economic policy to favor concentrated wealth.

The Betrayal of the American Dream by Donald Barlett and James Steele Investigative reporters document specific policy changes and corporate practices that undermined middle-class prosperity since the 1970s.

Dark Money by Jane Mayer A history of how wealthy donors and corporate interests influenced American politics through networks of think tanks and political organizations.

🔷 Author Hedrick Smith won a Pulitzer Prize for his coverage of the Soviet Union and Eastern Europe while working as a correspondent for The New York Times. 🔷 The book took three years of intensive research and over 400 interviews with people across various economic backgrounds to complete. 🔷 Smith coined the term "wedge economics" to describe the growing disconnect between worker productivity and wages that began in the 1970s. 🔷 The author traces a specific turning point to 1971, when corporate lawyer Lewis Powell wrote an influential memo that sparked a pro-business movement in American politics. 🔷 Published in 2012, the book builds on Smith's Emmy Award-winning PBS documentaries about America's economic challenges, including "Challenge to America" and "Is Wal-Mart Good for America?"