Who Stole the American Dream? by Hedrick Smith Summary

Who Stole the American Dream? by Hedrick Smith examines the systemic dismantling of middle-class prosperity since the 1970s, tracing how corporate lobbying, shifting political policies, and financial deregulation concentrated wealth among the top 1%. Smith highlights pivotal moments like the 1971 Powell Memo and tax reforms favoring corporations, arguing these actions eroded economic equality and democratic stability.

This book is essential for readers interested in economic inequality, political science, or modern U.S. history. Policymakers, educators, and activists will find its analysis of corporate influence on democracy and actionable solutions like a "Domestic Marshall Plan" particularly valuable.

Yes. Pulitzer Prize-winning journalist Hedrick Smith combines rigorous research with accessible storytelling, offering a compelling critique of wealth disparity. The Seattle Times praised its "precision, detail, and accessibility," while Kirkus Reviews called it "brilliant" for linking historical policies to today’s economic challenges.

Smith identifies corporate lobbying, tax policies favoring the wealthy, offshoring of jobs, and financial deregulation as key drivers. He argues that initiatives like the 1971 Powell Memo—a corporate blueprint to influence politics—redirected economic gains upward, stagnating wages and shrinking middle-class opportunities.

Smith advocates for a New Deal-style "Domestic Marshall Plan" to revive manufacturing, invest in infrastructure, and prioritize middle-class needs. This includes public-private job creation, fairer tax laws, and challenging unfair trade practices like China’s currency manipulation.

He contends that government has historically been central to economic growth, citing the New Deal and interstate highway system. Smith urges a proactive industrial policy to counterbalance corporate power and rebuild equitable growth, rejecting laissez-faire approaches.

• “The Power Shift”: “Business leaders realized they could rewrite the rules of politics to favor their interests”.
• On Inequality: “The top 1% captured two-thirds of America’s wealth gains between 2002 and 2012”.

These underscore Smith’s focus on systemic inequity and collective action.

Unlike purely theoretical analyses, Smith blends data with human stories—e.g., factory closures—to show policy impacts on everyday Americans. While Thomas Piketty’s Capital focuses on wealth trends, Smith emphasizes actionable reforms and historical turning points.

Some argue Smith’s call for grassroots activism understates entrenched corporate power. Critics also note his solutions—like infrastructure investment—require political unity, which remains elusive in polarized climates.

With rising income inequality and debates over tax reforms, Smith’s analysis of corporate lobbying and wage stagnation remains urgent. The book’s 2023 resurgence reflects ongoing concerns about automation, globalization, and fair wages.

Smith identifies lobbying as a primary tool for reshaping laws to benefit corporations, such as tax breaks and deregulation. The U.S. Chamber of Commerce and Walmart are cited as key players in undermining labor rights and outsourcing jobs.

He argues that a thriving middle class is vital for democracy, as economic stability fosters civic engagement. Concentrated wealth, however, distorts political representation, privileging corporate donors over ordinary voters.