The Canadian Dream: A Green Light, Not So Far Away
By: Naoshin Fariha
Tags: Socioeconomic Disparity, Social Mobility, American Dream

Source: Karim Salaheldin

The American Dream has always been a long coveted, well, dream. In all fairness, the American Dream is no easy feat — sure, it may have become much easier now than perhaps when it was first coined in the 1930s, but the reality is, the American Dream is still nothing but an impossible dream for many.

Well, maybe for Americans at least.

Studies show that in the US, an important factor to one’s success is the wealth of their parents, but in Canada individuals born to poorer families have a higher chance of receiving good education, owning a home, and in general leading better lives than their parents, than their American counterparts. The American Dream is not as difficult to achieve in Canada as it is in the US.

The American Dream itself is the idea that anyone can attain their version of success in a society where upward social mobility is possible for everyone- with no regard to their origins, their families, or what socio-economic classes they were born into. Social mobility refers to the movement across classes of social hierarchy, and the American Dream is thought to be achieved through hard work, sacrifice, and risk-taking, not by luck, chance, or family status. Furthermore, the American Dream demands equality and equal opportunities for everyone based solely on achievement and ability.

In January, the World Economic Forum published its Global Social Mobility Index which ranks different countries based on their citizens social mobility regardless of socio-economic class or background. The index ranked 82 countries and their economies on five different elements: work (specifically opportunities, fair wages, and work conditions), education, technology access, institutions and protection.

Without surprise, the Nordic countries have the best social mobility scores, while countries with emerging economies such as Brazil, have significantly lower scores. From the G7 countries, Germany was the most socially mobile with a rank of 11, while Canada was not too far below in rank 14. The US ranked 27 out of 82 – perhaps not a bad score in general, but shocking given the common notion that America is where dreams come true.

The World Economic Forum released a statement saying “the headline finding of the report is that most economies are failing to provide the conditions in which their citizens can thrive…as a result, an individual’s opportunities in life remain tethered to their socio-economic status at birth, entrenching historical inequalities”. Data collected by IPSOS found that Americans who grow up in high income households, already have three times the likelihood to have stronger social and professional networks compared to those who grow up in lower income households. Wealthy-born Americans experience twice the advantages in terms of both financial and social capital.

The American Dream itself does not stray far off from what was written in the American Declaration of Independence, this idea that all American men have the right to “life, liberty, and the pursuit of happiness”. While this notion has attracted millions to the US, it has failed to come true. Many countries surpass the US in social mobility among other rankings. Canadians live longer than Americans, are six times less likely to be imprisoned, and the 6th happiest while Americans are only the 13th happiest in the world. The green light might be starting to fade away and take on a new name: the Canadian Dream.

No matter how you dissect the American Dream, every facet of it it more easily obtained in Canada than in the US itself. Starting from education, in the US only 46% of the population have been able to get a college degree. In Canada, it’s over 10% more. Canada’s employment rate is four points better than the US’s, and the home ownership rates are 5% higher. Not only are the standard factors of the American Dream better, even the day-to-day aspect of working towards the Dream is better in Canada where Canadians work over 80 hours less per year and take an extra three days for vacation.

Moreover, politically Canadians are much better off. Americans can no longer claim the title “land of the free” as Americans have been ranked the 23rd freest people in the world by the Cato Institute’s Human Freedom Index, while Canada placed neatly at a 6. The conservative Heritage Foundation ranked the US’s economic freedom 17 compared to Canada’s 7th place. Reporters Without Borders ranked Canada 18 for freedom of press, and humorously enough, despite the well-boasted First Amendment, the US finds itself with a rank of 41. For over 80 years Canada’s Gini coefficient (a measurement of economic equality in a country)has been significantly better.

Scott Gilmore, a former Canadian diplomat, explained why, in a CTV interview, the American Dream has moved up north. Canada’s healthcare system has been a key player as unlike Americans, Canadians are not going bankrupt because of the the overwhelming healthcare costs and bills. For this reason, the poorer parts of Canadian society are able to thrive. There is also an easier access to education, and Canadians do not have nearly as much of a student loan problem as Americans.

For any government, tackling the issue of social mobility is vital. According to a policy brief from OECD, there are a number of harmful economic, political, and social consequences of having a “broken social elevator”. Mobility prospects are actually important factors in determining well-being and life satisfaction, and it also matters for social solidarity and democratic participation. Health outcomes being transmitted from generation to generation- having little to no wealth on top of sick parents are two of the biggest predictors of poor health in an OECD country. Lastly, social mobility is the foundation of economic growth- low social mobility for a country’s citizens can erode the economy.

The World Economic Forum also outlined the work ahead for all of the countries who were studied in the index to allow citizens to be more unutterably aware of their identities with their countries rather than melting into the systemic issues. It encourages the government to play a much stronger role as an equalizer, and ensure a level playing field regardless of their citizens socio-economic backgrounds. This can include creating an entirely new financing model for social mobility, and really get down to restructuring policies to address the issue of wealth concentration and improving on tax progressiveness to support the social mobility agenda. If governments want to solve this systemic issue, they will have to invest money in social spending much more than they do already.

Likewise, there is a greater need for support in the education sectors and lifelong learning, and governments must work towards promoting skills development throughout a person’s career. Education must also be more accessible in terms of the availability and the quality of education that students across a country receive. Once citizens reach the workplace, they will also need to be greeted with a new social protection contract- one that offers holistic protection for workers and support during job transitions.

However, the government cannot be the only harbinger of change — there must be support for these new agendas reflected in the private sector as well. Studies show that the companies that perform the best long term, are the ones that prioritize purpose over profits. Similarly, if businesses want to perform better, they must work towards generating greater trust between customers and stakeholders by helping build more equitable societies. To boost social mobility, businesses need to pay fair wages and eliminate the gender wage gap, but more specifically they are asked to take the lead to promote a meritocracy when hiring, upskilling by paying fair wages, and providing vocational education.

The American Dream demands that industries and sectors address historic inequalities within their structures and create action plans specific to their industries, taking into consideration the varying circumstances of different industries.

What is often seen as literary fluff rather than a political need, the American Dream is a vital part of economic and social bliss. It is completely necessary to believe in the green light, and not lose sight of the importance of social mobility and the factors that indirectly affect it. Maclean’s believes that “no generation of Canadians has ever had more and been able achieve more than us — and no generation has been less ambitious”.

With all the tools and opportunities that Americans can only dream of having, Canada must find a purpose to work towards alongside the agenda of improving social mobility — this is what builds a better society. It is vital for the world’s economies to work towards finding purpose and social mobility, otherwise every country in the world will be doomed to watch the future year by year recede before them.