Why does the future look like a murky crystal ball to so many young Americans? Many blame it on skyrocketing student loans, elusive dream homes, and paychecks that barely cover the basics.
Woman Speaks Up
Ora Hardesty is a woman who posted her views on TikTok, and explained how a myriad of factors has made cost of living and the ‘American Dream’ near impossible for younger generations.
Young Americans Feel Defeated
Hardesty’s pessimism about the economy and her future can be attributed to a combination of factors, some of which are unique to their generation and others that are tied to broader economic trends.
Contributing Factors
Over the past five years the world has changed significantly. Hardesty brings up several key factors to blame for the loss of optimism.
Student Loan Debt
Many young Americans are burdened with significant student loan debt, which can limit their financial freedom and options post-graduation. The high cost of education means that starting adult life with debt is now the norm for many, affecting their ability to save, invest, or make major purchases like homes.
Housing Affordability
The housing market has seen prices soar in many areas, making homeownership a distant dream for some young people. Renting is also increasingly expensive, consuming a larger portion of their income and making it harder to save for the future.
Job Market and Wages
While the job market has recovered from past recessions, many young people face challenges in finding stable employment that matches their qualifications and aspirations. Even when employed, wage stagnation relative to the cost of living can make economic progress feel slow or nonexistent.
Comparisons with the Boomer Generation
Young people like Hardesty compare their economic progress with that of their parents or grandparents, who they perceive had more opportunities for economic advancement. Changes in the economy, such as the shift away from manufacturing to service-based jobs and the increased requirement for higher education, mean that the path to economic security has changed and, in some ways, become more challenging.
The Impact of the Pandemic
The pandemic has had a profound impact on the economy and the job market, exacerbating many of the issues young Americans face. The uncertainty and disruptions caused by the pandemic have added to concerns about economic stability and personal futures.
