I don't know that America is the land of 'rags to riches' so much as 'rags to well-off.' America is becoming the land of the middle-class, and this is due to a couple of factors.
Since the decline of the factory industry, other jobs are opening up, and these jobs come with advancement opportunities. Whereas, as has been stated, with the factory job the worker was stuck there; at a corporation or business, the employees have a chance to advance.
I think to really understand whether a rags-to-riches story is possible, we have to take a look at inflation. This
site explains a lot about the way the dollar has changed. As an example, let's look at the Presidential wages.
QUOTE
The $25,000 annual presidential salary that began with George Washington was worth an estimated $320,000 to $480,000 in today's dollars, though that dropped to about $240,000 for James Madison in 1814 following the War of 1812, and to about $260,000 --- b ecause of Civil War inflation --- for Abraham Lincoln in 1865.
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While they may have earned less, by today's dollar standard, they were paid a lot more. But, by the same token, everything they had cost a lot more, because they were not as technologically advanced, so they were unable to afford the kind of lifestyle we have today.
There is also a growing middle class (see the above graph in above post) as people leave the poverty level and rise to the middle class. The middle class simply rises to a higher middle class.
While it may take a college degree to earn the kind of money it did not used to take-- this is necessary because American jobs are becoming more specialized. Since we got rid of the factory-based economy, we rely on more specialized job skills, which require training-- and often a degree.
And as to the idea that it is a lottery, and some people 'win' the college degree and others don't-- that is precisely what the rags-to-riches story means. Those that don't get the degree didn't miss out on the success lottery because they were 'unlucky', but because they didn't work hard enough. (I know people who just gave up, and it wasn't because they couldn't have done it, they just didn't want to work at it.)
It is possible for the average person to become rich. Theoretically, all they would have to do is get a degree in law, and join the millions of lawyers in the country and contribute to the swelling number of lawsuits.
Take a look at the music industry-- many of the performers have a rags-to-riches story. Obviously there are many more who do not make it, but the point is that there are people who do, so it is possible.
I personally am not interested in becoming a top level CEO. I would far prefer a semblance of a life than a 70-80 hour workweek. But that's just me.