I have always heard the phrase "a Horatio Alger story" and took it to mean that this Horatio person had a rags-to-riches success story. The phrase is not in very common usage today and it turns out that my definition is not completely accurate to its origin.
There was a real Horatio Alger Jr. who was born in Chelsea, Massachusetts in 1832. He was the oldest of five kids, and he was nearsighted and asthmatic. He was accepted to Harvard when he was 16, and he said, "No period of my life has been one of such unmixed happiness as the four years which have been spent within college walls."
He studied under Henry Wadsworth Longfellow, was named Class Poet, and wrote essays, poetry, and short sketches. After graduation, he didn't enjoy much publishing success, so he made his living by taking a series of temporary teaching jobs.
He moved to New York City and began working with homeless and delinquent boys, establishing boarding houses and securing homes and public assistance for them. It was during this time that he started writing dime novels for boys. It was his fourth book Ragged Dick; or, Street Life in New York with the Boot-Blacks (1868) that finally made him a literary success.
The book followed a formula that he would return to often - a young boy, living in poverty, manages to find success and happiness by working hard and never giving up. The books created a kind of American concept that if you worked hard, and lived virtuously, and had a combination of "pluck and luck," you could go from the gutter to the mansion.
The popularity of the books - and maybe that idea - decreased as the century turned. He revised his style, making the stories more violent and gritty, but they had peaked.
He died in near-poverty in 1899. So his story is more of a riches-to-rags story.
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