The Myth That Made Us

The US economy is built on a distorted view of how and why some succeed while others struggle.

American society has fallen victim to “The Myth” – the deep-seated notion that modern capitalism rewards those who deserve it. Billionaires are successful because they’re simply smarter and harder working than everyone else, The Myth proclaims. And those left behind get what they deserve, too. They’re not savvy enough, not industrious enough and simply not motivated enough to thrive in a ruthlessly competitive marketplace. Those who accept The Myth dismiss many other realities, too, such as that race and class disadvantage millions of Americans, and that individual prosperity isn’t determined solely by individual effort. The Myth lets policymakers and business leaders look past systemic solutions and blame personal failings.

The Myth is deeply ingrained in the American citizenry. The earliest seeds are planted with the tale of America’s founding. The narrative stresses the nation’s roots as a place of equality and meritocracy. Anyone can succeed, The Myth says, regardless of color or creed, as long as they’re willing to work hard. Mainstream economics reinforces...