If you sit in on a conversation between my close friends and I, you’re likely to hear the question, “In this economy?” asked at least once. While we use this expression jokingly, most times to imply that something is too expensive and that we, as college students, don’t have money to pay for it, there is some merit to the idea that Gen Zers are soon to face financial trouble. After all, inflation is high, wages are low, and we are witnessing the results of ineffective policy to combat these controversies. So what is on Gen Z’s radar? Why should we be a little frenzied? Let’s talk about it.
The first thing I wish to analyze is housing prices. If you’re like me, the concept of living in a house, let alone BUYING a house, sounds insane (and not because I don’t want to own one). In Utah, the average home price is $545,000 [1]. I’m 24 years old; I think I’ll be about 40 when I can comfortably make that purchase. Utah is on the high end of housing prices, but equally, the Federal Reserve of Saint Louis finds that the median home price in the U.S. is $416,100 this year [2]. These numbers are astronomically high, trending higher and higher as time goes on. Explaining these trends is a whole beast in itself, but that conversation is for another time (maybe next semester). The principle remains that Gen Z is looking at an expensive housing market with years of debt and loan repayment.
Secondly, climate change has the potential to disrupt the global supply chain and cause catastrophic harm for the American economy. To put it simply, even though America might not be the first to see the effects of a changing climate (lean economies are disproportionately impacted by them first), it will be one of many to experience the ramifications due to globalization and specialization involved with international trading. To that end, America will suffer “significant risks to microfinance stability,” as it accommodates altering weather patterns and shocks to the global economy [3]. Gen Z will be in charge of mitigating these risks by actively combating climate change and creating economically-friendly policies that ensure economic growth while protecting the planet. To date, I have yet to see this done efficiently and discern that Gen Z will bear the responsibility of this issue.
Lastly, there is some concern over the relationship between wage growth and inflation. Low levels of inflation are often seen as a good thing, as they imply a strong economy. It only becomes dangerous when those levels get high enough to the point where wages and job growth are unable to keep up. In an economy that is experiencing higher levels of inflation, as we have witnessed both recently and historically, there is reason to be speculative. In April of 2021, for the first time in recent years, the rate of inflation exceeded the growth of wages, and that lasted all the way until March of 2023. [4] Certainly the relationship between these two phenomena fluctuates, but Gen Z will have to find a way to stabilize the balance between these two. Supporting stronger wages while accounting for higher levels of inflation will prove to be difficult and something that Gen Zers will have to account for.
While there are many reasons why Gen Z should be apprehensive about its future in America, I don’t wish to scare you. There are various issues that are coming our way, yet I believe that this generation is one to provide the strongest group of leaders this country has seen. In my opinion, Gen Z has more passion and drive than older generations and is more open-minded when it comes to the issues I presented here. On top of that, Gen Z is on track to be the best-educated generation yet [5]. As a result of all of this, I’m optimistic that our future will be built on consensus, efficiency, and political stability, allowing Gen-Z to save America’s economic future.
