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Why the American Dream is Dead: Exploring the Decline of Opportunity and Prosperity in the United States

The American Dream, once synonymous with opportunity and prosperity, seems to be fading away. In recent years, there has been a decline in the availability of upward mobility and the promise of a better future for all in the United States. This article delves into the factors contributing to the demise of the American Dream and explores the reasons behind the decline of opportunity and prosperity in the country.

One of the key reasons for the decline of the American Dream is income inequality. Over the past few decades, the gap between the rich and the poor has continued to widen, leaving a significant portion of the population struggling to make ends meet. According to a study by the Pew Research Center, in 2018, the highest-earning 20% of Americans earned more than half of the country's total income, while the lowest-earning 20% earned just 3.1%. This growing income disparity hampers social mobility, making it increasingly difficult for individuals from low-income backgrounds to move up the economic ladder.

Another factor contributing to the decline of the American Dream is the lack of affordable education and healthcare. Access to quality education is often considered the pathway to success and upward mobility. However, rising tuition fees and the burden of student loans have created barriers for many aspiring individuals, limiting their opportunities for education and ultimately stifling their potential for success. Similarly, the high cost of healthcare in the United States leaves many without adequate medical coverage, leading to financial hardship and diminished opportunities for prosperity.

In conclusion, the American Dream is facing significant challenges as the country navigates through a decline in opportunity and prosperity. Income inequality, limited access to affordable education and healthcare, and various other factors contribute to this decline. It is imperative for policymakers and society as a whole to address these issues and work towards creating a more equitable and inclusive society that restores the promise of the American Dream for all.# Factors Contributing to the Decline

Economic Inequality

One significant factor contributing to the decline of the American Dream is the alarming rise in economic inequality. Over the past few decades, the gap between the rich and the poor has grown wider, with the wealthiest individuals accumulating a disproportionate share of the nation's wealth. This growing wealth disparity hampers upward mobility and leaves fewer opportunities for lower-income individuals to improve their socioeconomic status.

Stagnant Wages

The stagnation of wages is another crucial factor affecting the decline of the American Dream. Despite remarkable productivity gains over the years, wages for the majority of American workers have remained largely stagnant. Adjusted for inflation, the average hourly wage has barely increased, leading to a diminished ability to achieve upward mobility and financial security. This stagnant wage growth further exacerbates income inequality and restricts economic progress for millions of Americans.

Decline of Manufacturing Jobs

The decline of manufacturing jobs has had a detrimental impact on the American Dream. Historically, manufacturing jobs provided stable employment opportunities with good wages and benefits, enabling individuals to build prosperous lives. However, with globalization and technological advancements, many of these jobs have been outsourced or replaced by automation. This loss of manufacturing jobs has left many communities economically devastated, with limited options for sustainable employment and upward mobility.

High Cost of Education

The increasing cost of education has become a major obstacle for those seeking to attain the American Dream. Higher education is often regarded as a pathway to better opportunities and higher-paying jobs. However, the soaring tuition fees, coupled with the burden of student loan debt, hinder access to quality education and limit social mobility. As of 2021, the average student loan debt sits at $38,792, further entrenching financial challenges and hindering one's ability to achieve upward socioeconomic mobility.

Racial Inequality

Persistent racial inequality remains a significant challenge that undermines the American Dream. Data shows that systemic racism and discrimination disproportionately affect minority communities, resulting in limited access to quality education, employment opportunities, and resources needed to thrive. These structural barriers perpetuate generational poverty, making it increasingly difficult for individuals from marginalized backgrounds to realize their full potential and achieve the American Dream.

In conclusion, the American Dream's decline can be attributed to various factors, including economic inequality, stagnant wages, the decline of manufacturing jobs, high education costs, and racial inequality. These systemic challenges have hindered upward mobility and prosperity for a significant portion of the population, presenting considerable hurdles for those trying to achieve the American Dream.

Income Inequality and Wealth Gap

Income inequality and the wealth gap have become major concerns in the United States, contributing to the perception that the American Dream is no longer attainable for many individuals. This section will delve into the factors that have led to the widening disparity in income and wealth distribution.

1. Growing Income Inequality: In recent decades, the United States has experienced a significant increase in income inequality. The wealthier individuals in society have seen their incomes grow at a much faster rate than those at the lower end of the economic spectrum. This growing divide has led to a concentration of wealth in the hands of a few, while many struggle to make ends meet.

2. Stagnant Wages: The decline in wages for a large portion of the workforce has contributed to income inequality. Over the past few decades, the real wages of middle- and lower-income workers have remained relatively stagnant, while those at the top have seen substantial increases. This has resulted in a situation where the rich keep getting richer, while many working-class individuals struggle to keep up with the rising costs of living.

3. Job Polarization: Another factor contributing to income inequality is the polarization of the job market. With advances in technology and automation, there has been a decline in middle-skill, middle-class jobs. Many of these jobs have been replaced by either low-skill, low-wage jobs or high-skill, high-wage jobs, further exacerbating the income gap.

4. Racial and Gender Disparities: Income inequality is also closely tied to racial and gender disparities. Studies have shown that people of color and women tend to earn less than their white and male counterparts, even when controlling for factors such as education and experience. This systemic inequality has perpetuated the wealth gap and limited upward mobility for marginalized communities.

5. Concentration of Wealth: The concentration of wealth among a small percentage of the population has drastically widened the wealth gap in the United States. The top 1% of households now hold a significantly larger share of the nation's wealth compared to previous decades. This concentration of wealth not only limits economic opportunities for others but also contributes to the perpetuation of inequality across generations.


These factors collectively contribute to the income inequality and wealth gap witnessed in the United States. As society grapples with these challenges, it is crucial to address the underlying causes and implement policies that promote a more equitable distribution of wealth and opportunities.

Unaffordable Education

The rising cost of education in the United States has become a significant barrier for many individuals, contributing to the decline of opportunity and prosperity. This section will delve into the issues surrounding unaffordable education and its impact on the American Dream.

1. Soaring Tuition Fees: Over the past few decades, the cost of higher education has skyrocketed, far outpacing inflation rates and wage growth. According to the National Center for Education Statistics, the average tuition for a four-year public college has more than doubled since the early 1990s. As a result, students and their families are burdened with crushing student loan debts, making it harder for them to achieve financial stability and hinder their chances of upward mobility.

2. Mounting Student Loan Debt: With the rising costs, more students are relying on loans to finance their education. The Federal Reserve reports that the total student loan debt in the United States has surpassed $1.7 trillion, with around 45 million borrowers. This debt burden not only limits economic freedom but also affects life decisions, such as delaying homeownership, starting a family, or pursuing entrepreneurship.

3. Unequal Access to Education: Unaffordable education disproportionately affects low-income individuals and minority communities. The increasing cost of education widens the opportunity gap, perpetuating socioeconomic disparities. Students from disadvantaged backgrounds often face significant hurdles in accessing quality education, hindering their ability to compete in the job market and pursue the American Dream.

4. Lack of Public Investment: Insufficient public funding for education has amplified the issue of unaffordability. As state and federal governments prioritize other areas, education budgets have not kept pace with the rising costs. This divestment puts the burden on students and their families, diminishing the affordability and accessibility of education.

5. Impact on Workforce Development: The lack of affordable education also affects the country's workforce development and competitiveness. Without access to quality education, individuals are unable to gain the necessary skills and knowledge to thrive in the modern job market. This, in turn, hampers economic growth and innovation.

In conclusion, the unaffordability of education in the United States poses a significant obstacle to the American Dream. The rising tuition fees, mounting student loan debt, unequal access, and lack of public investment hinder social mobility and perpetuate inequalities. Addressing these challenges is crucial to revitalizing the American Dream and ensuring opportunities for all.

Rising Cost of Healthcare

The soaring cost of healthcare in the United States has posed a significant obstacle to achieving the American Dream. As medical expenses continue to rise year after year, many Americans find themselves burdened with exorbitant bills, limited access to care, and diminished economic opportunities. This section examines the factors contributing to the escalating cost of healthcare and its adverse effects on individuals and the nation as a whole.

1. Inefficiencies in the Healthcare System

One of the primary drivers of healthcare costs is the inefficiency within the system. Administrative expenses, complicated billing processes, and the substantial overhead costs of healthcare institutions contribute to the overall burden on patients. Additionally, the lack of standardized pricing and the opacity surrounding healthcare pricing make it difficult for individuals to make informed decisions about their healthcare options.

2. Pharmaceutical Industry Influence

The rising prices of prescription drugs further compound the cost of healthcare in the United States. Pharmaceutical companies exert significant influence over drug pricing, often leading to exorbitant costs for life-saving medications. The lack of competition and regulatory oversight allows drug manufacturers to set prices at levels that are unaffordable for many Americans.

3. Fragmented Healthcare Delivery

The fragmented nature of the healthcare delivery system in the U.S. contributes to the rising costs. The absence of a unified system leads to duplicated services, unnecessary procedures, and overuse of medical resources. This not only increases the financial burden on patients but also diminishes the overall quality of care.

4. Insufficient preventive care and chronic disease management

Insufficient focus on preventive care and chronic disease management also contributes to the escalating healthcare costs. By placing more emphasis on early detection, education, and proactive management of chronic conditions, healthcare spending can be reduced in the long run, as costly emergency interventions and hospitalizations become less necessary.

5. Impact on Economic Mobility

The rising cost of healthcare has severe implications for economic mobility, undermining the very essence of the American Dream. Mounting medical bills force individuals into bankruptcy, restrict their ability to invest in education or start businesses, and perpetuate a cycle of financial instability. The lack of affordable healthcare options also hinders job mobility, as individuals are tied to employers who provide essential health benefits.

Table: Key Statistics

Statistic Data
Annual healthcare spending per capita (2019) $11,582 1
Percentage increase in healthcare costs since 2010 19.7% 2
Percentage of Americans delaying or forgoing healthcare due to cost concerns (2020) 33% 3

The rising cost of healthcare in the United States poses a significant threat to the American Dream, limiting opportunities and prosperity for individuals and stifling economic growth. Addressing the root causes of the problem, such as inefficiencies in the system, pharmaceutical industry influence, fragmented healthcare delivery, and inadequate preventive care, is crucial to mitigating the impact on individuals and supporting a healthier, more equitable society.

Decreasing Job Security

Introduction

Over the past few decades, job security in the United States has significantly declined, serving as one of the key indicators that the American Dream is slipping away. This section explores the factors contributing to the decreasing job security and highlights the detrimental impact it has on individuals and the overall economy.

Globalization and Outsourcing

One major factor behind the decline in job security is the rise of globalization and outsourcing. As companies strive to remain competitive in a global market, they often turn to outsourcing to cut costs. This results in the relocation of jobs to countries with lower labor costs, leaving many American workers vulnerable to unemployment or underemployment. According to the Bureau of Labor Statistics, between 2000 and 2010, the U.S. lost approximately 2.7 million jobs to outsourcing, significantly impacting job security.

Automation and Technological Advancements

Advancements in technology and the increased use of automation have also played a significant role in the diminishing job security. As industries become more automated, the demand for certain types of jobs decreases, leading to layoffs and job insecurity for those whose skills have become obsolete. Automation has particularly impacted manufacturing and traditionally low-skilled jobs, causing a decline in employment opportunities for many Americans.

Gig Economy and the Rise of Non-Standard Employment

The rise of the gig economy and non-standard employment arrangements has further eroded job security. With an increasing number of individuals working on a contract or freelance basis, traditional notions of a stable, long-term job are becoming less prevalent. Gig workers often lack the benefits and protections that come with a full-time position, such as health insurance or retirement plans. This puts individuals at greater financial risk and reduces their ability to plan for the future.

Income Inequality and Economic Uncertainty

The widening gap between the wealthy and the rest of society also contributes to decreasing job security. As wealth becomes concentrated in the hands of a few, the majority of workers struggle to attain job stability and financial security. Economic uncertainty, characterized by low wages, inadequate benefits, and lack of job opportunities, leaves individuals vulnerable to financial hardships. This instability undermines the notion of achieving the American Dream, where hard work and opportunities should lead to prosperity.

In conclusion, decreasing job security in the United States is a pressing issue that hinders individuals from achieving the American Dream. Globalization and outsourcing, automation and technological advancements, the gig economy, and income inequality all compound the problem, making it increasingly difficult for workers to find stable employment. Policy interventions and innovative approaches are necessary to address these issues and restore opportunity and prosperity for all Americans.

Automation and Technological Advances

Automation and technological advances have played a significant role in shaping the current state of the American Dream, contributing to both its decline in certain areas and its transformation in others. The rapid integration of automation and new technologies across industries has had a profound impact on employment opportunities and income inequality within the United States.

Impact on Job Losses

  • Automation has led to the loss of jobs in various sectors, especially in industries that heavily rely on repetitive or manual tasks. High-tech manufacturing, packaging, and assembly line jobs have been increasingly replaced by machines and robots, resulting in fewer employment opportunities for low-skilled workers.
  • According to a study conducted by the University of Oxford, 47% of U.S. jobs are at risk of becoming automated in the coming decades. This alarming statistic highlights the potential magnitude of job displacement caused by technological advancements.

Skill Requirements and Wage Disparity

  • The rise of automation has also increased the demand for higher-level skills. Jobs that require specialized knowledge or expertise, such as programming or data analysis, are in high demand, while low-skilled jobs face growing competition from automation. This shift has contributed to a widening wage disparity between workers with advanced skills and those without.
  • Data from the Economic Policy Institute reveals that average hourly wage growth for low-wage workers has stagnated over the past few decades, while wages for high-wage workers have steadily increased. This trend reflects the divide created by automation and the growing importance of specialized skills in a technology-driven economy.

Transformation of Industries

  • While automation has led to job losses, it has also paved the way for the emergence of new industries and job opportunities. Technological advances have created a demand for skilled workers in fields like artificial intelligence, machine learning, and cybersecurity.
  • The Bureau of Labor Statistics projects that jobs in these fields will grow at a much faster rate than average, offering promising career prospects for individuals equipped with the requisite expertise. However, it is important to note that these emerging industries may not provide the same level of opportunities as the jobs they replace.

In conclusion, automation and technological advances have brought about significant changes to the American Dream. While they have resulted in the loss of some jobs and increased wage disparity, they have also created new opportunities in high-tech industries. The transition towards a more automated economy requires careful consideration of how to support and retrain individuals impacted by job displacement, ensuring that the American Dream remains accessible in the face of technological progress.

Lack of Social Mobility

Social mobility in the United States has been a key component of the American Dream, representing the idea that anyone can achieve success through hard work and determination. However, in recent years, the lack of social mobility has become a concerning issue, contributing to the decline of opportunity and prosperity in the nation.

Limited Upward Mobility

One of the main indicators of the declining social mobility is the limited upward mobility experienced by many individuals. A significant portion of Americans born into low-income families find it extremely difficult to move up the economic ladder. Research conducted by the Pew Charitable Trusts reveals that about 43% of those born into the bottom quintile of income distribution remain in the same quintile as adults, with only 4% making it to the top quintile. This stark lack of upward mobility highlights the considerable challenges faced by individuals trying to improve their economic standing.

Education Disparities

Education plays a crucial role in determining an individual's social mobility. However, disparities in educational opportunities have created unequal access to advancement. Data from the National Center for Education Statistics shows that students from low-income families are less likely to graduate from high school and attend college compared to their wealthier counterparts. This educational disadvantage further perpetuates the cycle of limited social mobility, as higher education is often a pathway to better job prospects and higher incomes.

Unequal Opportunity Structures

Another factor contributing to the lack of social mobility is the unequal opportunity structures present in the United States. Studies from the Equality of Opportunity Project have highlighted the impact of geographic location on social mobility. The research revealed significant disparities between regions, with some areas offering more opportunities for upward mobility than others. Factors such as income inequality, residential segregation, and limited access to quality education all contribute to this uneven landscape of opportunities.

Declining Economic Mobility

In addition to limited upward mobility, economic mobility in general has witnessed a decline in recent years. The World Inequality Database suggests that income inequality in the United States has been steadily increasing since the 1980s, thereby hindering economic mobility. Persistent income inequality means that a significant portion of the population has limited access to the resources and opportunities needed to climb the economic ladder, further exacerbating the lack of social mobility.

The lack of social mobility in the United States represents a significant challenge, undermining the principles of the American Dream. The limited upward mobility, education disparities, unequal opportunity structures, and declining economic mobility all contribute to the decline of opportunity and prosperity in the country, reflecting the urgent need for comprehensive reforms to increase social mobility and ensure equal access to opportunities for all individuals.

Effects on Minority Communities

The decline of opportunity and prosperity in the United States has had a disproportionate impact on minority communities. Despite progress being made in recent years, significant disparities still persist, hindered by systemic barriers and socio-economic factors. This section explores some of the major effects experienced by minority communities in the context of the fading American Dream.

1. Income Inequality: Minority communities, particularly African Americans and Hispanics, have historically faced lower household incomes compared to their white counterparts. According to the U.S. Census Bureau, the median household income for African Americans in 2019 was $45,438, while for Hispanics it was $56,113, compared to $66,943 for whites. This income disparity limits their ability to accumulate wealth and invest in opportunities for upward mobility.

2. Education Disparities: Minority communities often have limited access to quality educational resources, resulting in lower educational attainment levels. As education plays a crucial role in creating economic opportunities, these disparities perpetuate the cycle of limited success. Factors such as underfunded schools, inadequate infrastructure, and higher dropout rates contribute to the educational gaps faced by minority communities.

3. Employment Challenges: Discrimination and biases continue to pose challenges for minority communities in the job market. Higher unemployment rates are observed among African Americans and Hispanics, affecting their ability to secure stable, well-paying jobs. Workplace biases can limit career progression, leaving minority individuals underrepresented in leadership positions across industries.

4. Homeownership Disparity: Minority communities have lower rates of homeownership compared to white households. Redlining, a discriminatory practice that denied loans and services to predominantly minority neighborhoods, contributed to housing segregation and limited access to affordable housing options. This disparity in homeownership deprives minority communities of an important avenue for wealth accumulation.

5. Criminal Justice System: Minority communities face higher rates of incarceration and systemic biases within the criminal justice system. The over-policing and disproportionate sentencing of minorities result in strained family ties, limited employment prospects upon release, and a perpetual cycle of recidivism.

These effects on minority communities highlight the deep-rooted systemic issues that obstruct equal opportunities and hinder the realization of the American Dream. Addressing these disparities calls for comprehensive policies and initiatives that dismantle barriers, promote equal access to education and employment, and foster inclusivity and equity in society.

Political and Policy Implications

Impact of Political Climate on Opportunity and Prosperity

The decline of opportunity and prosperity in the United States has profound political and policy implications. Here are some key considerations:

  1. Growing income inequality: The widening wealth gap has emerged as a critical political issue, as it highlights the unequal distribution of resources and opportunity. This disparity can lead to social unrest and erode public trust in the government's ability to ensure a fair and just society.

  2. Lack of upward mobility: The diminishing prospects of upward mobility pose a challenge to the American Dream. If individuals cannot improve their social and economic status through hard work and determination, it can lead to disillusionment and a sense of hopelessness. Consequently, social mobility becomes a key focus for policymakers.

Policy Failures and Missed Opportunities

  1. Education system: The quality of education and access to affordable higher education play a significant role in determining economic mobility. However, the American education system has faced numerous challenges, including inadequate funding, disparities in resources, and a failure to adequately prepare students for the modern job market.

  2. Labor market policies: The erosion of workers' rights, decline in union membership, and stagnating wages have contributed to the decline of American prosperity. Policymakers need to prioritize fair labor practices, worker protections, and equitable distribution of economic growth to address these issues.

  3. Tax policy: The current tax structure, with its loopholes and exemptions, has favored the wealthy and corporations, exacerbating income inequality. Reforming the tax code to ensure a more progressive system and closing tax loopholes could create a fairer society and generate resources for key investments in areas such as education and healthcare.

Necessary Reforms

  1. Investment in human capital: Strengthening education at all levels, ensuring access to quality healthcare, and providing training and reskilling opportunities are vital for equipping individuals with the skills needed for a rapidly changing economy.

  2. Support for small businesses and entrepreneurship: Encouraging innovation and fostering entrepreneurship can create new opportunities and drive economic growth. Policies that provide access to capital, reduce regulatory burdens, and support small businesses can help revitalize local economies and increase job opportunities.

  3. Progressive tax and wealth redistribution: Implementing a fairer tax system that requires the ultra-wealthy and corporations to contribute their fair share can provide the necessary resources to invest in social programs, infrastructure, and initiatives that promote economic prosperity for all.

By addressing these political and policy challenges, the United States can strive to revive the American Dream and ensure that opportunity and prosperity are accessible to all its citizens.

Calls for Revitalizing the American Dream

As the American Dream faces challenges in the current socio-economic landscape, various voices have emerged, calling for measures to revitalize the fading promise of opportunity and prosperity. These calls recognize the need for systemic changes and advocate for policies that address the root causes behind the decline. Here are some key proposals put forth by experts, scholars, and activists:

  1. Investment in Education: Many believe that improving access to quality education is crucial for reviving the American Dream. This involves addressing disparities in resources, ensuring affordable higher education, and equipping students with relevant skills for the changing job market.

  2. Income Inequality Reduction: The widening income gap has been a persistent concern. Calls for increasing the minimum wage, implementing progressive taxation, and promoting fair labor practices aim to create a more equitable society where economic opportunities are not limited to a few.

  3. Access to Healthcare: Affordable and accessible healthcare is considered essential for individuals to pursue their dreams without fear of being burdened with crippling medical expenses. Expanding healthcare coverage and reducing healthcare costs are important steps in this direction.

  4. Supporting Small Businesses and Entrepreneurship: Encouraging entrepreneurship and providing resources for small businesses can foster innovation, job creation, and economic growth. This requires streamlining regulations, offering financial assistance, and promoting a favorable business environment.

  5. Infrastructure and Technology Investments: Enhancing the nation's infrastructure and expanding access to high-speed internet can help bridge the opportunity gap between urban and rural areas. Such investments can improve connectivity, stimulate economic activity, and create employment opportunities.

  6. Racial and Gender Equality: Recognizing the disparities faced by marginalized communities, advocating for equal opportunities, and dismantling systemic barriers is critical to revitalizing the American Dream. This includes addressing issues related to discrimination, segregation, and bias that hinder social progression.

  7. Government Accountability and Transparency: Calls for reforming campaign finance, reducing the influence of money in politics, and ensuring transparency in decision-making aim to restore public trust and restore fairness in the system.

It is important to note that the effectiveness and viability of these proposals vary among individuals and policymakers. However, there is a growing recognition that a combination of these measures, along with comprehensive and inclusive policies, is crucial to revitalizing the American Dream and fostering an environment where everyone has a fair chance to succeed.

Conclusion

The decline of opportunity and prosperity in the United States has cast a shadow over the once vibrant American Dream. The belief that anyone can rise from rags to riches through hard work and determination seems to be fading away. This article has explored the key factors contributing to the demise of the American Dream and how they have shaped the current state of affairs in the country.

One of the major factors impacting the American Dream is the growing income inequality. Over the past few decades, the gap between the rich and the poor has widened significantly. According to recent data, the top 1% of households in the United States now hold more wealth than the bottom 90% combined4. This staggering inequality stifles upward mobility and creates a sense of hopelessness among those striving to achieve a better life.

Another crucial element is the decline of well-paying jobs. With the rise of automation and outsourcing, many traditional middle-class occupations have been replaced or moved overseas5. The loss of these jobs has led to a decrease in economic opportunities, leaving many struggling to make ends meet and unable to fulfill their aspirations.

Furthermore, the skyrocketing costs of education and healthcare have placed immense financial burdens on individuals and families. Tuition fees continue to soar, making it increasingly difficult for young people to pursue higher education without incurring substantial debt6. Access to quality healthcare has also become a luxury rather than a right, with many Americans facing exorbitant medical bills and inadequate insurance coverage7.

The erosion of social mobility has also played a significant role in the decline of the American Dream. Research suggests that the United States now has some of the lowest mobility rates among developed countries8. Opportunities for economic advancement are often limited by factors such as race, gender, and socioeconomic background, leading to a perpetuation of disadvantage and a lack of equal access to the American Dream.

In conclusion, the American Dream, once a beacon of hope and promise, is now facing significant challenges. The combination of income inequality, loss of well-paying jobs, rising costs of education and healthcare, and limited social mobility has created a society where achieving prosperity and opportunity seems increasingly unattainable for many. To revive the American Dream, concerted efforts are needed to address these issues and create a more equitable and inclusive society that provides equal opportunities for all.


  1. Source: Centers for Medicare & Medicaid Services.  

  2. Source: Commonwealth Fund. 

  3. Source: The Commonwealth Fund Biennial Health Insurance Survey 2020. 

  4. Source: Inequality.org 

  5. Source: Pew Research Center 

  6. Source: College Board 

  7. Source: The Commonwealth Fund 

  8. Source: The Brookings Institution 

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