I don't think either of these characterizations deserve to be iconified... we were never really the source of the world's dreams, and we're not the source of the world's nightmares. Both statements oversimplify too much. America does have certain values as part of its culture which are important and useful: freedom, entrepreneurial spirit, valuing honesty and hard work, etc. Combined with what at one time was a large supply of untapped geographic resources (land, timber, oil, etc.), the country produced unprecedented wealth in a short time, with a pretty stable social structure. But this does NOT prove that the American system of government is the best possible structure, or that our values are the ultimate values, or that we should be a model for all countries throughout the world -- and yet we do absorb those kinds of ideas when growing up here. That leaves us prone to believing we should simply IMPOSE our values and structure on other countries, to "help" them catch up. The situation in Iraq is yet another illustration of just how naive this perspective is. One cannot form a healthy, robust democracy by force... the whole structure rests on the widespread acceptance of certain values and ideas by the population at large, not on writing the correct constitution or merely holding elections. The problem with clinging to an idealized notion of who we are is that it blinds us to our darker side. The problem with having an excessively "negative" view of ourselves is that it weakens our commitment to the values we have which really ARE worth promoting. So "waking up" means avoiding extremes with regard to these matters -- keeping our feet on the ground -- standing for our values, without getting entangled too deeply in our collective ego. And it wouldn't hurt to allow ourselves to learn from other countries, too.

Ballard reveals himself as a pessimist a bit - he is happy to provide examples of the nightmares, but didn't bother to provide the numerous examples of the dreams / good that the American Dream has supplied and still supplies. I disagree with the primary assertion that the "Dream" has run out of gas - it still exists, still drives people to success, and immigrants to believe that, with perserverance, intelligence, and a bit of luck, they can make their own American dreams come true. That said, although it still has gas, I do think it's fair to say the gas tank is running low in the last several decades, and seems to be running lower all the time. This country was founded on rugged individualism, desire for personal liberty, and both freedom of and freedom from religion, with a small of touch of isolationism that has ebbed and flowed over the centuries. And yes, imperialism, the previously omnipresent American dream of Manifest Destiny. In a modern world of increasing government involvement and legislation in all areas of the lives of private citizens at all levels (hindering freedom and individualism), over-taxation (to pay for all of that), over-regulation of private enterprise, the horrific trend of politicizing science, the inefficient and corrupt regulation of health care and the general public health through organizations such as the FDA (nitpicking over whether people should have the right to take large doses of certain vitamins or herbs, or certain controlled substances, when we don't even have an inkling of a national universal health care system)... it goes on an on. The people that founded the country wanted to be free from all the crap they left, and we've slowly but surely been building that crap up here, losing the "rugged" in rugged individualism and becoming more and more a society scared to plan BIG and build BIGGER. Most people genuinely don't think it's even possible to build a skyscraper or have serious manned activity on the Moon anymore, in a country increasingly dominated by political correctness, and worry about everyone and their mothers' feelings about everything, all the while navigating through ever-growing forests of red tape and special interest groups. Meanwhile, religious groups and concerns have an increasing place in politics and government, all the while trying to rewrite our history as a country founded by devout Christians (read the bios of such men as Thomas Jefferson, Benjamin Franklin, or Abraham Lincoln, to relieve yourself of this myth). This is sad, and is killing the American Dream. But it's not dead - yet. It still drives us, still informs the success of this great nation. We just need to remember where we came from. If someone with the money and the will wants to build another skyscraper, maybe they should be able to just say "screw it" in the face of "local community interests", federal, state and city regulations, environmentalists, and whatever other groups of whiners try to put the brakes on it. We need to be ABLE to do great things again, without so many restrictions, that aim to avoid offending or displeasing people, and only leave a weak and vaguely offensive state of affairs in its stead. Not that skyscrapers are all so great (just an example), or that we can't do great things anymore - just that it's been made a lot harder to do great things in our current cultural climate. And that causes the American Dream to get really bad gas mileage... which sucks, no?

Then why do millions of people do anything they can, including risking their lives and life's savings, to get in even on the bottom rung of American society?

Part of me says it rings true. The other part is anecdotal and based upon my experiences with people longing to come here and remain here. Stableboy and MvL have done superior analysis and I would not even attempt to top that. Points to them and to you for an insightful question.