The Sweatshop of the Meritocracy: Dylan Gottlieb on How the Yuppies Conquered America

“As recently as the mid-seventies, under 5% of Ivy Leaguers are headed to Wall Street. It’s actually not that attractive. But as Wall Street’s deregulated, it changes the incentive structure — it makes it much more profitable and demands this huge labor force.” — Dylan Gottlieb

They stalked the sidewalks of Manhattan in button-down shirts embroidered with the names of investment banks. They jogged. They drank Beaujolais Nouveau. They gentrified neighborhoods. They were the Yuppies — and with the Boston-based Dylan Gottlieb, they’ve found their young urban professional biographer.

In Yuppies: The Bankers, Lawyers, Joggers, and Gourmands Who Conquered New York, Gottlieb offers both a social history of financialization and a collective biography of the professional class that came of age in the Reagan years. Rather than a passing 1980s stereotype, Gottlieb argues that the Yuppie is a phenomenon that remade the American economy, city, and political class. As recently as the mid-1970s, under 5 percent of Ivy League graduates went to Wall Street. A decade of deregulation later, banks were recruiting a third of graduating classes from top universities. The sweatshop of the meritocracy was born. Most of us are still sweating.

Five Takeaways

•       From Yippie to Yuppie: The Word’s Origins: Yuppie resonates with Yippie — the iconographic late-sixties radicals of the New Left, for whom Jerry Rubin was the signifier. The word first appeared in a Chicago alt-weekly in the late 1970s to describe highly educated young people trickling into gentrifying North Side neighbourhoods. It didn’t achieve full cultural dominance until 1984, when it became the frame for supporters of Gary Hart’s presidential campaign — a prototypical Yuppie candidate who stormed the Democratic primary and represented a new professional vanguard within the party. The word named something that was already happening. It didn’t create it.

•       The Incentive Structure Changed: Under 5% to One Third: As recently as the mid-1970s, under 5 percent of Ivy League graduates went to Wall Street. It was seen as the preserve of WASPy children who used family connections to get a bank job. By the mid-1980s, banks were recruiting roughly a third of graduating classes at top universities. What happened: deregulation made finance enormously more profitable; finance demanded a large educated labour force to do the work of putting finance at the centre of the American economy; and the most talented students — those who might have become poets or public servants — followed the money. At mid-century, the most prestigious option for a Princeton graduate was middle management at a Fortune 500 company. By 1985, it was Wall Street.

•       Democratization and Distinction: The Double Movement: Gottlieb’s central thesis is a double movement. The Yuppie era brought genuine diversification to America’s elite: Jewish lawyers could now make partner at firms previously closed to them; women entered investment banks in numbers that would have been inconceivable in 1965; Black and Asian Americans got at least a foot in the door. This was new, and it mattered. Simultaneously, that newly diversified elite pulled further away from the rest of America, extracting profits from companies being financialized and rents from communities being gentrified. Democratization and distinction in constant tension. The elite became more diverse and more remote at the same time.

•       The Pyramid to Cylinder Shift: AI is about to do to the Yuppie what the Yuppie did to everybody else. Gottlieb spoke recently to an HR representative at an investment bank — name and bank withheld — who