The New American Dream is Not About Having More, it’s About Being More

The Statue of Liberty is an iconic symbol of the American Dream 

The American Dream is a guiding belief that characterizes our nation and defines our culture. It represents a promise of possibility for all Americans living in the Land of Opportunity.

The concept was first popularized by historian James Truslow Adams in 1931 through his book Epic of America: “But there has been also the American Dream, that dream of a land in which life should be better and richer and fuller for every man, with opportunity for each according to his ability or achievement”, regardless of social class or circumstances of birth. This vision quickly became a Dream of Abundance and set in motion a culture of consumerism over the last three-quarters of a century.

The financial crisis of 2008, caused millions of Americans to lose their jobs, life savings and their homes. Like the Great Depression, it represented a failure of capitalism and shook the very foundation of the American Dream.

Suze Orman, a personal financial advisor, author, motivational speaker and TV host, recently published a book called “The Money Class: Learn to Create Your New American Dream”. In it, she argues that the old American Dream is dead. “The old American Dream was based on bigger, better, more. More house, more car, toys, all of these things. And that would've been an OK dream if we had the money to [pay for] those things…It was a dream that was based on financial lies. The new American Dream, there is no debt, you live below your means, within your needs. You get pleasure out of savings, as much as you do in spending.” The new American Dream is not about having more, it’s about BEING MORE.

With 82 percent of U.S. consumers affected by the economic downturn, the percentage of US citizens involved in a cause dropped from 60 percent to 53 percent between 2010 and 2012, according to the 2012 Edelman GoodPurpose Study.  Yet, for the first time ever, the U.S. was the only country to believe the responsibility of tackling society’s issues falls most heavily on the shoulders of “people like me” (35 percent) and not government (22 percent). Edelman believes “the tension of this paradox spells significant opportunity for marketers. While U.S. consumers currently have less time and money to put towards societal issues, they still feel they’re most responsible to help,” said Carol Cone, global practice chair, Business + Social Purpose, Edelman. “Brands and corporations can ease the burden for consumers by making involvement in social issues easier and more aligned with the core needs they face today: jobs, hunger, education and healthcare."

Image source: 2012 Edelman goodpurpose Study

According to the study, purpose remains a deeply held belief around the globe that is driving consumer behavior and preference.

The Edelman GoodPurpose Study sheds light on why today's consumers are ready to make a difference and why that means it's time for brands to get involved and to change the way they think about doing business (if they haven't already). Today's consumers not only want, but expect brands to be purpose-driven. They want brands and companies to be responsible, not just responsive. "Values are the new currency; Purpose is the new paradigm."

Image source: 2012 Edelman goodpurpose Study

The Edelman GoodPurpose Study:

As the role of social purpose in purchasing decisions has increased, purchase frequency has also intensified: 47% of global consumers buy brands that support a good cause at least monthly. In 2012, 76% of global consumers believe it is acceptable for brands to support good causes and make money at the same time.

While 87% of global consumers believe that business needs to place at least equal weight on society’s interests as on business’ interests, less than a third believe business is performing well in addressing societal issues. This performance gap is likely to drive disillusionment, disengagement and outright distrust from consumers. Edelman CEO Richard Edelman called this seismic shift an organization’s need to go beyond earning a “license to operate” to earning a “license to lead.”

Approximately half of respondents believe organizations should donate a portion of profits (51%) and products or services (50%), while 49% believe companies should be creating a product or service that helps address a societal issue. Also, 80% of global consumers believe it is important for companies to make them aware of the societal issues that they are supporting.

Image source: 2012 Edelman goodpurpose Study

Do These Ideas Resonate With You? 

Do you think it's time to redefine the "American Dream”? Are you more inclined to make purchases depending on a brand's purpose? Are you more prone to share such a brand with your friends? Tell us if you agree that consumers and businesses can play a significant role in addressing the issue of education.