The old European systems of Social Democracy already solved the issues.
Give everyone a minimum standard of life, ensuring that everyone has an opportunity at improving themselves. Give everyone a second chance.
If everyone has similar chances at getting quality education, at getting into good jobs, then people's status only depends on their own merit.
For the American dream to work, we need a social market economy. Not just in the US, not just in Germany, but in every country we gave a free trade zone with.