n general, Europeans are not only more pessimistic
than Americans, they are also too pessimistic relative to reality, while Americans are too optimistic.
Three additional facts stand out. First, Americans vastly over-estimate the probability of making
it to the top of the ladder for children starting from the bottom. This is the embodiment of the
idea of the “American dream.” Second, Europeans are too pessimistic about the chances of getting
out of poverty, i.e., out of the bottom quintile. Third, Europeans are also too pessimistic about
the probability of making it to the upper middle class (the fourth quintile). The answers to the
qualitative questions are highly correlated with those to the quantitative questions and paint a very
similar picture.