The Precarious State of the American Dream. Since the perils of the Great Recession several years ago, the American economy has made a significant recovery. This can be seen in a number of ways. New jobs are being created at higher rates than have been seen in decades. The unemployment numbers are down considerably.

Home values have begun to rebound. The stock market is soaring.

Oil is under $50 per barrel serving as an economic boost for many Americans. In many ways, today’s economic climate is perhaps as ideal as it could be.

However, the reality is that consumer confidence is still quite shaken. A recent poll conducted by the New York Times revealed that “the public is more pessimistic than it was after the 2008 financial crisis that it is possible to work hard and become rich” (Sorkin & Three-Brenan 1).

This view may seem incongruent with the current economic stability; however, a careful consideration of recent history and future trends shows that this viewpoint may have significant merit. The truth is that the American Dream—for decades the one defining hope for many Americans—is on the verge of extinction.

Here the student sets up the context or setting for the argument. This discussion of the American Dream needs to be understood within current economic trends.

Here is the thesis.

The concept of the American Dream has consistently centered around the belief that even those on the lower end of the socioeconomic spectrum can attain success in life through hard work. This was the result of a thriving economy, easy access to higher education, and the recognition that hard work would be rewarded. In many ways, this concept derived from the fact that many people immigrated to America seeking a better life.

These immigrants worked their way up on the societal ladder over time, with each generation hoping that their children would have it better than they did. Thus, the trend of upward social mobility was born.

The concept of rewarding hard work largely originated from the industrial revolution and the policies of the early automotive companies who paid their workers higher wages in order to allow them to earn enough to become customers as well.

The plight of the American worker improved over time through actions of labor unions, employment laws, and a steadily increasing wage. There were many reasons to support the notion of the American Dream.

In many arguments, it is important to define key terms. Here the student defines the term “American dream.” This is important because different people may have different ideas as to what this term means.

However, the reality is that many of those reasons are no longer present in society. First, consider the role of unions in promoting American economic mobility. Labor unions served as primary catalysts in support of worker rights and were nearly single-handedly responsible for higher wages, safer working conditions, and increased benefits for American workers. However, unions have significantly declined in relevance over the past decades.

According to Liu, the number of American workers in unions has reached a 97-year low, declining to 6 percent from a post-World War II high of 35 percent (3). This is due to an increasing disinterest in unions paired with many states’ passage of right-to-work laws which significantly destabilized unions and reduce their effectiveness. While right to work states have increased commercial investment, that success has not translated to the daily lives of workers who are experiencing reduced pay and benefits amidst their inability to effectively negotiate.

The Bureau of Labor Statistics revealed that union workers earn an average of $10,400 more per year than non-union workers and are 30 percent more likely to receive health benefits with 11 percent lower premiums (Service Employees International Union 4). It is easy to see how the decrease in unions has endangered the American Dream.

Here is an example of what I like to call a “return sentence.” It wraps up the paragraph by connecting the ideas back to the thesis.

Notice the use of a transitional phrase. This signals to the reader that this paragraph will focus on an idea contrary to the previous paragraph. Transitions are important tools to help the reader follow along.

This is a good “logos” appeal here. However, It could be improved by including just a little information about Liu and his/her expertise or credibility on the issue.

Perhaps the most significant factor contributing toward the seemingly looming extinction of the American Dream is the change in wage trends. In 1970, median real wages were three times what they were in 1950, representing an astonishing growth in purchasing potential for American workers. However, since that time the trend has reversed.

According to Coontz, “Since the 1970s, although worker productivity has climbed steadily, real earnings of production workers has stagnated or fallen, as has the minimum wage.” In other words, while corporate profits have steadily increased, the minimum wage has not kept pace. In 1968, the minimum wage allowed families of three to live above poverty; however, by 2008, a minimum wage meant poverty for even a family of two (White House).

This trend is indicated by the graph below. The result has been a rapidly stratified country where the wealthiest 5 percent gain in wealth while the rest of the population continues to fall further behind. As a result, President Obama has called on Congress to pass a national minimum wage of $10.10; however, support for this initiative does not appear to be forthcoming.

This image does a good job of helping the reader understand the trends in wages. It is clear and well placed.

Notice here, after the quotation, that the student explains the quote and connects it to the main idea of the paragraph.

Notice how this paragraph begins with a topic sentence. We can expect that the evidence presented in this paragraph will relate to changes in wages.

The other major factor leading to the decline of the American Dream is a decreasing access to higher education. The concept of attaining a college education has been synonymous with climbing the socioeconomic ladder for quite some time. Due to strong government support, access to higher education largely increased throughout the latter half of the twentieth century.

This was largely the result of the G.I. Bill which subsidized tuition for returning veterans and the establishment of Pell Grants which provided access for lower income students. Unfortunately, both federal and state support for higher education has gradually waned. The famous Pell Grant, which could cover tuition expenses in full even in the 1990s, now only covers a fraction at most institutions (Anderson).

The result is that Americans have to take more and more loans in order to graduate with just a bachelor’s degree. Currently, seven of ten graduates have student loans and the average debt is $28,400, leaving fresh college graduates with a significant financial burden as they begin their careers (The Project on Student Debt). This burden may significantly reduce their ability to attain the traditional American Dream.

As a whole, it is easy to see why an increasing number of Americans may feel that the prospect of the American Dream is gradually slipping away. The historical trends that provided for an ever-increasing social progression are in a state of decline. Labor unions were significant catalysts of increases in wages and benefits; however, their membership is at a near hundred year low and they are actively under attack by many state legislatures.

For many decades, wages kept pace with increased productivity, serving to significantly increase the earning power of most Americans. However, this trend has plateaued, causing the gradual but steady decline of the middle class. Finally, the economic success of the country’s past was anchored by easy access to a college degree; however, the abandonment of higher education by state and federal governments has left students to take on massive debt in order to meet their educational goal. The reality is that the American Dream is becoming extinct.

Action is desperately needed to reverse this trend and it will perhaps require extensive progressive policies to ensure that America remains a land where hard work is all that is needed for success.

Here the student summarizes the argument and restates the thesis.

Overall, this is an excellent essay. It has a clear thesis and each body paragraph focuses on one reason that supports the thesis.

The research is well integrated, as is the visual element. There is one area that needs improvement: the use of pathos / emotional appeals. While this essay does a good job of appealing to our sense of logic, the essay does not appeal to our shared values as Americans. It does not make us feel the consequences of declining economic mobility. An interview with a family that has been left behind might make the argument more convincing on an emotional level.

Works Cited

The works cited page looks good. The entries are alphabetized by the author’s last names. Also notice the use of the “hanging indent” for 2nd lines of each entry. Newer MLA guidelines require that citations also include the URL web address.

Anderson, Nick. “Degrees of inequality: How the politics of higher education sabotaged the American Dream.” 7 March 2014. Web. 5 Jan. 2015.

Coontz, Stephanie. “The New Deal and Civil Rights helped make the dream more

attainable.” New York Times. 1 Jan. 2015. Web. 5 Jan. 2015.

Liu, Edward. “The decline of unions is your problem too.” Time. 29 Jan. 2013. Web. 5

Jan. 2015.

Service Employees International Union. “the union advantage: Facts and figures.” Web. 6 Jan. 2015.

Sorkin, Andrew Ross and Megan Thee-Brenan. “Many feel the American dream is out

of reach, poll shows. The New York Times. 10 Dec. 2014. Web. 5 Jan. 2015.

The Project on Student Debt. “Student Debt and the Class of 2013.” 18 Nov. 2014.

Web. 6 Jan. 2015.

White House. “State of the union videos and slides.” 28 Jan. 2014. Web. 6 Jan. 2015.

• Include an introduction that summarizes the main points with an example.
• Critically reflect on the importance of external financing requirements. What key factors must be considered when determining external financing requirements?
• Briefly describe the types of agency conflict, and provide an example of at least one of the types of agency conflict to support your response.

Make all 14 adjustments on the “Adjusting Journal Entries” tab. Remember to include a description under each journal entry.

2. Post the adjustments to the general ledger on the “12-31-21 T-Accounts” tab. You may have to add T-Accounts for new accounts.

Link your T-Account entries to your Journal Entries. PLEASE NOTE THAT THE “BB” (BEGINNING BALANCES) FOR THE

T-ACCOUNTS REPRESENT THE BALANCES AS OF 12/31/21.

3. Once the 12/31/21 T-Accounts are complete, prepare the Adjusted Trial Balance. There may be some accounts with zero dollars, and you

may have to insert lines for new accounts. Link the Adjusted Trial Balance to your T-Accounts.

4. Use the Adjusted Trial Balance numbers to complete the Income Statement, Statement of Shareholders’ Equity, and Balance Sheet.

For purposes of the Income Statement, prepare using the multiple step format and assume that Rent Revenue, any Unrealized Holding Gains/Losses,

Interest Expense, Interest Revenue, and any other Gains/Losses are NOT part of the major central ongoing operations of the company. For purposes

of the Balance Sheet, be sure to prepare a classifed Balance Sheet. Link your financial statements to your Adjusted Trial Balance.

If necessary, review financial statement preparation in Chapters 3 and 4 of your Intermediate Accounting textbook for a quick refresher.

5. When the Financial Statements are complete, make the closing entries on the “Closing Entries” tab.

6. When closing entries have been made, post the entries to the general ledger on the “Post-Close T-Accounts” tab. Make sure your adjusting

journal entries are also on your Post-Close T-Accounts. They will not automatically flow from tab-to-tab. (Helpful hint: After you have completed

and posted all of your adjusting entries, make a duplicate copy of your “12-31-21 T-Accounts” tab to replace the existing blank

“Post-Close T Accounts” tab by right clicking on the completed “12-31-21 T-Accounts” tab, select Move or Copy,

then click on “Create a Copy” and then place at the desired location. You can then delete the original “Post-Close T-Accounts” tab and rename the

newly duplicated tab as your “Post-Close T-Accounts” tab).

7. The final step is the Post-Closing Trial Balance, which will use the ending balances from the Post-Close T-Accounts.

8. Double-check your work. Here are a few things to check for:

-Adjusted Trial Balance: Make sure debit column and credit column total to the same figure at the bottom.

-Net income from the income statement will flow through to the Statement of Retained Earnings.

-Ending Shareholders’ Equity balances will flow through to the Stockholders’ Equity section of the Balance Sheet.

-The Post-Closing Trial Balance should not have any revenue, expense, gain, or loss (temporary) accounts.

-Check figure 1: Income from operations = $355,057.

-Check figure 2: Income before income taxes = $293,730.

-Check figure 3: Total Current Assets at 12/31/21 = $1,188,236.

-Check figure 4: Retained Earnings at 12/31/21 = $206,984.

-Check figure 5: Total Stockholders’ Equity at 12/31/21 = $651,984.

-Check figure 6: Total Liabilities at 12/31/21= $1,418,862.

-Check figure 7: Total Other Income/Gains and (Expenses)/(Losses) for 2021= ($61,327).

-Remember: Neatness matters in Financial Statements. Print or Print Preview before submitting to make sure your statements are neat.

Otherwise, management may send back to you for revision!

-Include your work at the bottom of each tab as needed.

-Ask questions prior to the day/night before the due date. The due date is clearly indicated on the course schedule.

-Utilize formulas and worksheet linkings in your financial statements to improve accuracy and save time in completing the assignment.

-Please take advantage of Excel by using formulas to calculate groups of numbers (i.e. “Total Liabilities and Stockholders’ Equity”).

-DO NOT force any cells to match check figures given. Any adjustments in the T-Accounts or financial statements not supported by

legitimate adjusting or closing entries will be considered financial statement misrepresentation sufficient to result in a failing grade.

Final comments: This project is intended to make sure that you understand the accounting cycle as well as several key financial accounting transactions that you have

studied during your Intermediate Accounting series. It is very important to take the necessary time on this project to master these concepts. The concepts mastered in this

comprehensive problem will serve you well in the rest of your accounting curriculum.