Dream Hoarders by Richard V. Reeves

Last updated: Jul 15, 2023

Summary of Dream Hoarders by Richard V. Reeves

Dream Hoarders by Richard V. Reeves is a thought-provoking book that explores the concept of social mobility and the role of the upper-middle class in perpetuating inequality in society. Reeves argues that while the focus of discussions on inequality often revolves around the top 1%, it is the upper-middle class, specifically the top 20%, that is primarily responsible for creating and maintaining a system that benefits them at the expense of others.

The book begins by highlighting the importance of social mobility and the American Dream, which promises equal opportunities for all. However, Reeves argues that the reality is far from this ideal, as the upper-middle class has found ways to secure advantages for themselves and their children, making it increasingly difficult for those from lower socioeconomic backgrounds to move up the ladder.

Reeves identifies four key areas where the upper-middle class hoards opportunities: education, housing, the labor market, and tax policy. In terms of education, he argues that the upper-middle class uses their resources to secure access to the best schools and colleges, leaving those from disadvantaged backgrounds with limited options. This perpetuates a cycle of privilege, as the children of the upper-middle class are more likely to succeed academically and financially, further solidifying their position in society.

Similarly, in the housing market, the upper-middle class uses their wealth to live in exclusive neighborhoods with better schools and amenities, effectively excluding those from lower socioeconomic backgrounds. This concentration of resources in certain areas further exacerbates inequality and limits opportunities for social mobility.

In the labor market, Reeves argues that the upper-middle class uses their social networks and connections to secure high-paying jobs and promotions, leaving those without such connections at a disadvantage. This creates a system where success is not solely based on merit, but rather on who you know and where you come from.

Lastly, Reeves examines tax policy and argues that the upper-middle class benefits from various tax breaks and loopholes, allowing them to accumulate wealth and pass it on to future generations. This perpetuates a cycle of privilege and inheritance, further widening the gap between the upper-middle class and the rest of society.

Reeves concludes the book by calling for a more inclusive society, where opportunities are not hoarded by the upper-middle class. He suggests policy changes such as reforming the education system, promoting affordable housing in all neighborhoods, and creating a fairer tax system that reduces advantages for the wealthy.

In summary, Dream Hoarders by Richard V. Reeves provides a comprehensive analysis of the role of the upper-middle class in perpetuating inequality. It highlights the ways in which the upper-middle class hoards opportunities in education, housing, the labor market, and through tax policy, ultimately limiting social mobility for those from disadvantaged backgrounds. The book calls for policy changes to create a more inclusive society where opportunities are accessible to all, regardless of socioeconomic status.

1. The concept of "opportunity hoarding"

In "Dream Hoarders," Richard V. Reeves introduces the concept of "opportunity hoarding," which refers to the ways in which the upper-middle class secures advantages for themselves and their children, often at the expense of those in lower socioeconomic positions. Reeves argues that while the top 1% may be the focus of discussions on inequality, it is actually the upper-middle class that perpetuates and benefits the most from the current system.

Opportunity hoarding takes various forms, such as using connections to secure internships or job opportunities, living in exclusive neighborhoods with better schools, or utilizing legacy admissions to prestigious universities. These practices create a cycle of advantage that is difficult for those outside the upper-middle class to break into. Recognizing and addressing opportunity hoarding is crucial for creating a more equitable society.

2. The role of education in perpetuating inequality

Reeves highlights the role of education in perpetuating inequality and the ways in which the upper-middle class uses their resources to secure better educational opportunities for their children. He argues that the current education system, particularly in the United States, is structured in a way that benefits the privileged few.

One example is the unequal distribution of resources between schools in affluent neighborhoods and those in low-income areas. Schools in wealthier areas often have better facilities, more experienced teachers, and access to a wider range of extracurricular activities. This disparity in resources further widens the achievement gap between students from different socioeconomic backgrounds.

Reeves suggests that addressing this issue requires not only investing in schools in disadvantaged areas but also rethinking admissions processes for selective schools and universities. By considering a broader range of criteria beyond test scores and legacy status, educational institutions can create a more level playing field for all students.

3. The impact of housing policies on inequality

Housing policies play a significant role in perpetuating inequality, according to Reeves. He argues that the upper-middle class uses their resources to secure housing in exclusive neighborhoods with better schools and amenities, effectively excluding those from lower socioeconomic backgrounds.

Reeves suggests that addressing this issue requires implementing policies that promote affordable housing in desirable neighborhoods. This would not only provide more opportunities for those from disadvantaged backgrounds but also foster greater social and economic integration.

Additionally, Reeves emphasizes the need to address exclusionary zoning practices that restrict the construction of affordable housing in certain areas. By promoting more inclusive housing policies, society can work towards reducing the disparities caused by housing inequality.

4. The importance of intergenerational mobility

Intergenerational mobility, or the ability for individuals to move up the socioeconomic ladder compared to their parents, is a key measure of social mobility. Reeves argues that the current system is failing to provide equal opportunities for upward mobility, particularly for those outside the upper-middle class.

He suggests that addressing intergenerational mobility requires a combination of policy changes and individual actions. On a policy level, measures such as increasing access to quality education, reforming tax policies, and promoting affordable housing can help level the playing field.

Individually, Reeves encourages those in the upper-middle class to be more conscious of their advantages and actively work towards creating opportunities for others. This could involve mentoring individuals from disadvantaged backgrounds, supporting policies that promote equality, and advocating for a fairer society.

5. The myth of meritocracy

Reeves challenges the notion of meritocracy, which suggests that success is solely based on individual merit and hard work. He argues that the current system is far from meritocratic, as it is heavily influenced by factors such as family background, social connections, and access to resources.

By highlighting the ways in which the upper-middle class secures advantages for themselves and their children, Reeves exposes the fallacy of meritocracy. He suggests that acknowledging this reality is crucial for creating a more equitable society, as it requires addressing the structural barriers that prevent equal opportunities for all.

Reeves calls for a more honest and transparent discussion about the role of privilege and the ways in which it perpetuates inequality. By recognizing the limitations of meritocracy, society can work towards creating a system that truly rewards individual talent and effort, regardless of background.

6. The need for a broader definition of success

Reeves argues that the current definition of success, which is often equated with high income and prestigious careers, perpetuates inequality. He suggests that society should broaden its definition of success to include factors such as social contribution, community engagement, and personal fulfillment.

By valuing a wider range of achievements, society can reduce the pressure to pursue high-paying careers and instead encourage individuals to pursue paths that align with their passions and strengths. This would create a more diverse and inclusive definition of success, allowing individuals from all backgrounds to thrive.

Reeves also emphasizes the importance of recognizing and valuing different forms of work, such as caregiving and community service, which are often undervalued in the current system. By reevaluating our definition of success, society can create a more equitable and fulfilling environment for all.

7. The role of public policy in addressing inequality

Reeves emphasizes the importance of public policy in addressing inequality and creating a more equitable society. He argues that while individual actions are important, systemic change is necessary to tackle the root causes of inequality.

Reeves suggests a range of policy measures, such as increasing access to quality education, reforming tax policies to reduce wealth concentration, and promoting affordable housing. He also highlights the need for policies that address the specific challenges faced by those in the lower-middle class, who often fall through the cracks of existing social safety nets.

By advocating for and implementing these policy changes, society can work towards creating a fairer and more inclusive system that provides equal opportunities for all.

8. The importance of collective action

Reeves emphasizes the importance of collective action in addressing inequality and creating a more equitable society. He argues that individual actions alone are not enough to bring about systemic change.

Reeves suggests that individuals should come together to advocate for policy changes, support organizations working towards greater equality, and engage in community initiatives. By joining forces, individuals can amplify their impact and create a collective movement for change.

He also highlights the role of social norms in shaping behavior and calls for a shift in societal attitudes towards greater equality. By collectively challenging and changing the norms that perpetuate inequality, society can create a more just and inclusive environment for all.