The End of the Homer Simpson Era: How the American Dream got Harder
If you ask someone to picture the American Dream, Homer Simpson probably isn’t the first person to come to mind.
Homer is lazy, angry, rude, and otherwise incompetent. And yet, he’s able to afford two cars, a house, take multiple vacations per year, and sustain a family of four as the sole earner.
There was a time when simply being an American entitled you to a good life. Homer Simpson, more than anyone else, epitomizes this concept.
The Simpsons came out 30 years ago, and is still running, but in that time the economic reality that supported the ‘Homer Simpson lifestyle’ has completely collapsed, and I’m not sure we’ll ever see it come back.
The Historical Backdrop
The Post-WWII Golden Age
The aftermath of World War II left the US as one of the few industrialized nations with its infrastructure intact. Europe and Asia had been bombed to pieces and were rebuilding from the devastating impacts of war. Latin America was grappling with underdevelopment, and its progress was stalled by political instability, frequent coups, and dictatorships. Africa faced similar issues as well as the impact of decolonization.
This meant that America was the only game in town.
Because of this, many Americans during this era enjoyed a standard of living that was unparalleled in history. They could expect job security, affordable housing, and a bright future.
To put some numbers behind this narrative, in 1960, the U.S. accounted for roughly 40% of global GDP, but by 2020, this percentage was closer to 24%.
The Rise of the Global Middle Class
Fast forward to the 21st century, and the world is drastically different. Economies in Europe, Asia, and the Persian Gulf have recovered and in some cases surpassed that of the United States. Dozens of other countries have emerged as economic players, pushing a new wave of consumers into the global middle class.
The internet and globalization has made it possible for the people of these countries to compete for jobs and goods with Americans.
For hundreds of millions of people around the world, this growth has meant better lives and prospects. However, for Americans it means that they may not experience the same economic prosperity as their parents.
There is a regression towards a global mean.
Historically, property ownership was a luxury enjoyed by society’s elite. The middle class in the US and other parts of the world, which grew accustomed to home ownership as a stepping stone to adulthood, is now confronting the traditional norms.
You can feel the effects of this transformation in the world of travel too. Historically, the majority of tourists at many international destinations were Americans.
In a lot of countries outside the United States, there’s the “American tourist” stereotype: a loud entitled person who demands everyone cater to him in English. However, with the rise of global middle classes, especially from nations like China and India, there’s a new wave of international tourists.
Places once dominated by American travelers now see visitors from all over the world. Summer vacations to Europe or backpacking trips across Southeast Asia, once seen as rites of passage for many Americans, are now shared dreams for millions worldwide.
This global competition has made travel pricier and less accessible for many Americans.
Our Present Reality
Frank Grimes: The Modern American Worker
In Season 8, the Simpsons introduced the character of Frank Grimes. Despite being extremely hardworking and diligent, Grimey struggled to succeed in life due largely to his terrible luck.
After the two characters get off on the wrong foot — with Grimes being angry and bitter at Homer’s constant failing upwards — Homer invites Grimes to his house. There, Grimes is shocked to see that Homer has a family, a wife, two cars, and a nice home, which Grimes describes it as a mansion.
Today, the experience most Americans will have is closer to that of Frank Grimes than Homer Simpson.
Soaring costs, overwhelming competition, and stagnant wages make the once ordinary life of Homer Simpson seem permanently out of reach.
The New Normal
In today’s globalized landscape, Homer Simpson, would probably be living in a one-bedroom apartment and catching the bus with Marge to work.
The sentiment that I see shared online a lot nowadays is that the system is broken.
For millions of young Americans, home ownership may be permanently out of reach. Even having a family is seen as too expensive.
Another issue faced by those who do decide to have families, is that the demographic landscape has changed. As more adults decide not to have kids, financially well-off DINKs (double income no kids) have more disposable income to bid up home prices.
Capitalism
For a lot of America’s youth, there’s an obvious culprit: capitalism. This system that supposedly relies on perpetual growth is finally reaching its limits. Or, more cynically, we’re victims of a plot by the world’s elites to hollow out the middle class and create a servile majority.
I think the reality is a lot simpler: resources are limited.
With increasing global competition for these resources, there’s less to go around. American GDP per capita, is now relatively smaller compared to the global GDP per capita than it was half a century ago. This isn’t malevolence or a broken system but a simple outcome of economic forces that have shaped societies since we first started planting seeds in the earth.
Is the American Dream Dead?
The challenges faced by current generations are real, but our frame of reference is skewed. The post-WWII era in America, which we often take as a benchmark, was a historical outlier — possibly the easiest generation that has ever lived to this point.
Instead of looking to the past, we should take a more global perspective. Millions across the world still aspire to the standard of living that modern Americans and Canadians experience. The freedoms, opportunities, and amenities available, despite the growing challenges, are still a dream for millions of individuals worldwide.
