Book Summary - Dream Hoarders: How the American Upper Middle Class Is Leaving Everyone Else in the Dust, Why That Is a Problem, and What to Do About It (Richard Reeves)
Summary: Richard Reeves argues that the American upper middle class (the top 20%) maintains its social status not just through merit, but by "hoarding" opportunities via exclusionary zoning, legacy admissions, and unfair internships. He contends that this "glass floor" prevents social mobility for the rest of society and calls for systemic reforms to create a truly level playing field.
1. Dream Hoarders: How the American Upper Middle Class Is Leaving Everyone Else in the Dust, Why That Is a Problem, and What to Do About It (Richard Reeves). May 2018.
[Google Gemini summary]
In "Dream Hoarders: How the American Upper Middle Class Is Leaving Everyone Else in the Dust, Why That Is a Problem, and What to Do About It", Richard V. Reeves delivers a provocative critique of the American class system. His central thesis is that the greatest threat to social mobility is not the "top 1%" but rather the top 20%—the upper middle class—who use their political and social influence to "rig" the market in favor of their own children, effectively "hoarding" the American Dream.
1. The Core Thesis: The Top 20% vs. Everyone Else
Reeves argues that American political discourse is obsessed with the top 1% (the super-rich), which allows the rest of the upper middle class to feel like they are part of the "struggling 99%." However, Reeves points out that the real "separation" in American life occurs at the 80th percentile.
Defining the Upper Middle Class: Reeves defines this group as households in the top quintile of income (roughly $120,000+ per year). This group is characterized by high levels of education, stable family structures, and significant political power.
The "Glass Floor": While we often talk about a "glass ceiling" for the poor, Reeves focuses on the "glass floor" that the upper middle class builds under their children. This floor prevents their children from falling down the social ladder, even if they lack the talent or work ethic of their peers.
Relative vs. Absolute Mobility: Reeves makes a crucial mathematical point: Relative mobility is a zero-sum game. If we want more children from the bottom 20% to move into the top 20%, then some children born into the top 20% must move down. The "Dream Hoarders" are those who refuse to accept this reality and fight to ensure their children never lose their status.
2. The "Greenhouse" Effect: How Class Is Inherited
Reeves argues that the upper middle class has turned family life into a "greenhouse" for the cultivation of human capital.
The Marriage Gap: There has been no "retreat from marriage" in the top 20%. These parents are more likely to be married, stay married, and engage in "assortative mating" (marrying people with similar education levels), which doubles the household's resource advantage.
Investment in "Human Capital": Upper-middle-class parents spend significantly more time and money on their children's development—from high-quality childcare and "enrichment" activities to the best schools. By the time they reach adulthood, the gap in "merit" between these children and those from the bottom 80% is often insurmountable.
3. The Mechanisms of Opportunity Hoarding
The most controversial part of Reeves' argument is "opportunity hoarding"—the ways the upper middle class actively rigs the system. He focuses on three primary areas:
A. Exclusionary Zoning (The Housing Trap)
The upper middle class uses local political power to pass "exclusionary zoning" laws. These laws prevent the construction of affordable housing, apartments, or multi-family units in "good" neighborhoods.
The Result: This keeps housing prices artificially high and ensures that only those with high incomes can live near the best public schools and job opportunities. It is a form of "market rigging" that protects the wealth and educational advantages of incumbents.
B. The College Admissions Cartel
Reeves argues that higher education—supposedly the engine of mobility—has become a mechanism for status preservation.
Legacy Admissions: He strongly critiques "legacy preferences," where children of alumni get an edge in admissions. He calls this "the American version of hereditary titles."
The 529 Plan Paradox: Tax-advantaged college savings plans (529 plans) overwhelmingly benefit the top 20%. When President Obama tried to reform these to make them more progressive, the backlash from his own upper-middle-class base was so fierce he had to retract the proposal.
C. The Internship "Graft"
Internships are often the gateway to high-paying professional careers. However, many are unpaid and allocated through "grace and favor" (nepotism).
The Result: A child from a working-class family cannot afford to work for free in a city like New York or D.C., nor do they have the social connections to secure these positions. This ensures the professional class remains a closed circle.
4. The Meritocracy Myth
Reeves does not argue against meritocracy itself; he argues that the market rewards merit, but the society does not provide an equal opportunity to develop it.
He cites Michael Young (who coined the term "meritocracy") to warn that a society that believes it is purely meritocratic becomes arrogant. The "winners" believe they earned everything by themselves, while the "losers" are told their failure is their own fault.
In reality, "merit" is often just the result of having been raised in the aforementioned "greenhouse."
5. Sharing the Dream: Proposed Solutions
Reeves concludes with a set of policy recommendations designed to "level the playing field," though he admits they are politically difficult because they require the top 20% to give up their "unfair" advantages.
Reduce Unintended Pregnancies: Providing better access to long-acting reversible contraception (LARCs) to ensure that every child is "born into a household that is ready for them."
Home Visiting Programs: Investing in programs that help lower-income parents with early childhood development.
Reform School Funding: Ensuring the best teachers are incentivized to work in the most "unlucky" schools.
End Exclusionary Zoning: Moving zoning power from the local level to the state or federal level to break the "not in my backyard" (NIMBY) stranglehold on housing.
End Legacy Admissions: Abolishing the "affirmative action for the rich" in university admissions.
Open Up Internships: Requiring internships to be paid and transparently advertised.
Reform the Tax Code: Eliminating regressive tax subsidies like the mortgage interest deduction and 529 plan benefits for the wealthy, and redirecting that money to vocational training and community colleges.
Conclusion: "Check Our Privilege"
The book ends with a plea for the upper middle class to "check their privilege." Reeves argues that the anger fueling populism (on both the left and the right) is often a legitimate reaction to a class of "experts" and "professionals" who talk about equality while ruthlessly protecting their own children's unearned advantages.
The American Dream is not dead, Reeves concludes—it is just being hoarded. The only way to save it is for the top 20% to be willing to lose their "glass floor" so that the rest of society has a fair chance to climb.
