The Two Americas

In his 1845 novel Sybil, Benjamin Disraeli famously described Britain as divided into “two nations; between whom there is no intercourse and no sympathy; who are as ignorant of each other’s habits, thoughts, and feelings, as if they were dwellers in different zones or inhabitants of different planets.”

His metaphor—of two distinct nations living within the same country but experiencing radically different realities—helps explain the outcome of the 2024 presidential election, with its deep educational, socioeconomic and cultural divide, bifurcated by the kind of work that Americans do and by differences in worldview and political and cultural attitudes.

This division has profound implications for social mobility, the cohesion of communities and even democratic participation, as these two Americas diverge not only economically but in lifestyles, values and social networks.

The United States in 2024, of course, differs dramatically from Victorian Britain. For all of this society’s divisions, these are nothing like the stark contrast between the privileged, wealthy upper class and Britain’s impoverished working class or the lack of connection, empathy and understanding between the classes.

Still, much as Disraeli’s “two nations” was a powerful indictment of the social and economic inequalities of his time, it remains a compelling lens through which to examine today’s class and cultural divides.

David Labaree, the great Stanford historian and sociologist of education, recently cited an essay by Walter Russell Mead, which underscores the widening chasm between America’s elite leadership class and the rest of society.

Mead uses a powerful historical metaphor—the French aristocracy’s isolation at Versailles under Louis XIV—to describe how American leaders are similarly disconnected from the lives and concerns of ordinary citizens. This metaphor underscores how elites, secluded in exclusive environments and steeped in shared codes and norms, are increasingly out of touch with the broader society.

Mead suggests that the American upper-middle and upper classes are primarily concerned with navigating the expectations of their fellow elites rather than bridging gaps with the rest of society. Past forms of leadership, like military service or factory management, often required engaging with people across class lines, forging bonds and gaining trust. These experiences, Mead argues, created a connection to the broader society that is increasingly rare among today’s leaders, who are less likely to interact with or understand those outside their bubble.

Mead’s comparison draws attention to the unintended consequences of meritocratic selection, which (perhaps) inadvertently fosters elitism and the alienation of educated, wealthy Americans from their fellow citizens.

---

Today, the distinction between those with college degrees and those without is stark. People with higher education levels, particularly those from elite universities, are much more likely to secure jobs in sectors associated with knowledge, symbolic work and high professional status. These sectors—like finance, consulting, law, technology, journalism and medicine—offer more stable, higher-paying positions, while also reinforcing social prestige and influence.

On the other hand, those without college degrees often find themselves in lower-paying, less stable employment or blue-collar jobs, deepening the socioeconomic gap. For many working-class Americans, the “college for all” mantra has lost its appeal as the college diploma wage premium has diminished, graduation rates remain low, college’s opportunity costs are high and too many graduates end up in jobs that pay no more than those with a high school degree.

Highly educated, high-status workers cluster in certain urban centers or affluent suburbs, creating exclusive enclaves, where housing costs are often prohibitive for those outside these elite professions. This clustering reinforces social isolation, as people from similar socioeconomic backgrounds live, work and socialize together, often in spaces inaccessible to lower-income Americans.

The knowledge class tends to invest heavily in their children’s education, sending them to private or high-performing public schools and reinforcing a cycle of privilege. This group’s tendency to marry within its class further consolidates resources, status and cultural capital within the upper tier, contributing to the reproduction of class advantage. We’re not talking about the 1 percent, but rather the top quintile of the income distribution.

Many knowledge-sector jobs, even if not high-paying, often offer stability and protections that blue-collar or service-sector jobs do not. For those without a degree, the job market is more volatile and susceptible to shifts in automation, outsourcing, offshoring and market instability, making their employment prospects far less stable. This difference in career stability and opportunity adds another layer to the “two Americas” division.

These two groups often differ not only in socioeconomic status but also in political leanings and cultural attitudes, as educational experiences and environments can shape one’s values, views on social issues and even political ideologies. These worldview differences further intensify feelings of division.

---

Outdated economic narratives about white-collar and blue-collar jobs tend to obscure the true nature of today’s workforce, creating a stark contrast between those who are able to prosper within this new economic framework and those who find themselves struggling in highly competitive and unstable jobs.

Rather than the traditional blue- and white-collar roles of the past, today’s economy is fragmented along many different lines. Alongside the government and government-adjacent sectors—those that benefit substantially from government contracts, subsidies, regulations and tariff barriers—there are the knowledge, symbolic, educational and nonprofit sectors, including technology and information, health care and biotech, financial services and fin tech, entertainment and media, educational and knowledge-based services, and many nonprofits.

Then there are advanced and traditional manufacturing, real estate and construction, insurance, energy, logistics and transportation, e-commerce and retailing, hospitality, agriculture, food processing and groceries, and a host of other services, which includes large numbers of franchises and small firms, some serving business or government while others are consumer facing.

Among the most far-reaching shifts involve:

• The geographical concentration of economic growth: The knowledge and tech sectors tend to be concentrated in specific metropolitan regions, creating vast economic disparities between cities and rural areas or small towns. Urban centers attract highly educated workers and reap the benefits of the knowledge economy, while other regions, particularly former manufacturing hubs in the Midwest and rural areas, face economic stagnation and decline. This concentration has reinforced divides not only in wealth and job prospects but also in access to amenities, health care and educational opportunities.
• The decline of middle management and stable corporate ladders: Corporate restructuring, outsourcing and the flattening of organizational hierarchies have reduced the number of middle-management roles that once formed the backbone of the white-collar sector. Many companies now rely on leaner management structures, where employees are expected to handle broader responsibilities without the promise of a stable, linear career path. Additionally, automation and software have replaced a number of routine white-collar roles, from data entry to certain aspects of financial analysis and HR, making job stability in these areas uncertain.
• The growth of the care economy: As the American population ages, health care has become one of the fastest-growing sectors in the economy, but much of this growth is concentrated in low-wage, high-turnover roles like home health aides and nursing assistants. These positions are often physically demanding, underpaid and lack career advancement opportunities. Childcare, elder care and other forms of caregiving are expanding as well, though they suffer from similar issues of low pay and job precarity.
• The erosion of private-sector union power: Unionized factory jobs once provided a route to stable, middle-class lives for blue-collar workers. But since the 1980s, union power has declined sharply, especially in the private sector. This has eroded wages, job security and benefits for blue-collar workers, who now often work for subcontractors or in contingent roles with less stability than their unionized predecessors. Even within manufacturing and construction, jobs are increasingly outsourced and large corporations often employ contractors rather than direct hires, reducing the likelihood of stable, long-term employment.
• The rise of nonstandard work arrangements: The traditional, stable, full-time job is less common than it once was. The rise of contract work, part-time roles and temporary positions has created a highly fragmented workforce, where workers have a mix of employment types throughout their careers. Many now string together multiple part-time or temporary gigs to make ends meet, an arrangement that lacks the stability or benefits associated with traditional full-time employment. Freelancers, consultants and contractors increasingly populate industries ranging from technology to creative services, making nonstandard work arrangements a core part of the modern economy.

In a fragmented, fluid, volatile economy, where technological disruptions are commonplace and competition runs rampant, job security is less assured. Working-class employees face the possibility of frequent job changes, layoffs and financial instability, and as large employers shed traditional roles, income inequality has widened. While some workers thrive in flexible, diverse roles, others struggle with the lack of stability, security and upward mobility.

---

Among the most striking economic developments of the past half century is outsourcing, the practice of contracting out jobs to third-party providers, which has become a widespread trend across many economic sectors, including government, higher education, health care and industry. Contracting out these services allows employers to increase flexibility, focus on core competencies, reduce payroll expenses and avoid long-term pension obligations, but this often introduces concerns over quality control and public accountability and worker protections.

Many municipalities outsource certain functions to other entities in efforts to manage resources, improve efficiency and address areas where specialized skills are needed. Many cities now contract out social services, mental health response and crisis intervention; foster care; traffic and parking enforcement; data analytics, surveillance and monitoring technology, such as facial recognition, license plate readers and social media monitoring; cybersecurity; forensic labs and evidence processing; correctional services; and re-entry and rehabilitation services.

In an effort to reduce costs, streamline operations and improve service quality, colleges and universities, too, increasingly outsourced various services to external providers. Among the main areas where universities outsourcing services are custodial services, groundskeeping and building maintenance; dining and food services; managing student housing; IT and technical support; student counseling services; campus security; bookstore and retail services; HR and payroll services; marketing and enrollment services; student loan management; and career services, internship placement and study abroad programs.

Another striking development is increased reliance on nonprofits to meet needs that governments and markets do not adequately fully address. The nonprofit sector has grown substantially over the past several decades, playing a crucial role in areas like education, health care, social services, environmental protection and the arts. While often seen as independent, the nonprofit sector depends heavily on government grants and contracts, foundation grants and philanthropic donations.

The expansion of the nonprofit sector has had complex implications for society, governance and the economy. As nonprofits take on roles traditionally associated with government, the line between public and private responsibility blurs. This shift can complicate accountability, as nonprofits are not directly accountable to voters, even if they are performing public functions. It also raises questions about the adequacy and fairness of relying on private actors to meet public needs.

Nonprofits’ dependence on government funding, foundation grants and philanthropy makes them vulnerable to economic shifts. During recessions or times of budget cuts, nonprofits often face funding shortfalls at precisely the times when demand for their services is highest. This volatility can make it difficult for nonprofits to maintain consistent service delivery.

Many nonprofits rely heavily on low-paid staff and volunteers to operate, which raises issues around labor rights and fair compensation. As the nonprofit sector grows, the expectation that workers will accept lower wages or even volunteer out of commitment to the cause can create workforce instability and lead to burnout. Addressing compensation and labor conditions within nonprofits is an ongoing challenge.

The growth of the nonprofit sector reflects broader societal shifts toward privatizing public responsibilities. In a society that has increasingly outsourced its space program to companies like SpaceX and Blue Origin, it’s not surprising that nonprofits are taking on a larger role in filling service gaps and addressing community needs. The nonprofit sector, with its strengths and vulnerabilities, represents both the promise and the complexities of addressing society’s needs in a mixed economy where the roles of government, business and nonprofits increasingly intersect.

---

A sustainable and inclusive U.S. economy requires broad-based prosperity that reaches beyond the narrow confines of the knowledge and symbolic sectors. Relying on these sectors alone not only leaves millions behind but also fosters an economic, educational and cultural divide that weakens social cohesion and undermines long-term stability. To bridge these divides, we must rethink our economic strategies to value all forms of labor, invest in vocational and skills-based education, and create pathways to stable, well-compensated work for those without college degrees.

By addressing the structural inequalities of our current system, universities can help create an economy that values diverse contributions and offers real opportunities for upward mobility, ensuring that prosperity is shared and sustainable for generations to come.

Colleges and universities have a crucial role to play in building a sustainable, inclusive U.S. economy by fostering broad-based prosperity that extends beyond the knowledge and symbolic sectors. Here are several key ways our campuses can contribute.

• Expand vocational and technical education: Colleges can develop or expand vocational and technical programs that prepare students for in-demand careers outside traditional white-collar fields, such as skilled trades, health-care support and advanced manufacturing. Four-year institutions should no longer treat colleges of technology as beneath them.
• Increase work-based learning opportunities: Universities need to expand robust internship, apprenticeship and co-op programs that offer hands-on experience and help bridge the gap between education and employment. These opportunities provide students with real-world skills, build relationships between employers and potential employees and encourage pathways to employment in sectors beyond the purely academic or symbolic.
• Offer affordable, flexible pathways to education for working adults and family caregivers: Institutions can help democratize access to higher education by offering affordable and flexible learning options, including online courses, part-time programs and modular or certificate-based credentials. Through these options, campuses can make education accessible and allow individuals to upskill without sacrificing their current livelihoods.
• Strengthen community college and four-year university partnerships: By collaborating with community colleges, four-year schools can help build a seamless educational pipeline that allows students to start with affordable, workforce-oriented programs and transfer to four-year institutions if they choose to pursue advanced degrees.
• Support entrepreneurship and small business development: Universities can foster entrepreneurial skills and support students interested in small business ownership, social entrepreneurship or local economic development. By providing access to incubators, start-up funding and business development resources, colleges can help launch businesses that contribute to local economies, create jobs and promote diverse economic activity.
• Engage in regional economic development: Colleges and universities can partner with local governments, nonprofits and businesses to address regional economic needs. Institutions can leverage their resources to support workforce development initiatives, invest in local projects and provide research that directly benefits local industries, ultimately strengthening the economic fabric of surrounding communities.

Through these initiatives, colleges and universities can play a transformative role in shaping an economy that values diverse skill sets, encourages inclusivity and creates pathways to stable and meaningful employment across sectors. By broadening their focus beyond the knowledge and symbolic domains, institutions of higher education can help bridge economic divides and foster a more equitable, sustainable future.