The narrative surrounding Generation Z is often bleak: a generation “screwed” by economic forces, doomed to debt, and even drifting toward extremist ideologies. While anxieties about the future are real, a closer look reveals a more nuanced picture. Zoomers are not necessarily worse off materially than previous generations—but unique challenges, combined with modern social dynamics, fuel a pervasive sense of pessimism.
The Myth of Economic Ruin
Despite widespread claims, Gen Z is performing better than previous generations at the same age by many key economic metrics. According to Federal Reserve data, the median 25-year-old Zoomer earned over $40,000 annually in 2022 (adjusted for inflation). This is 50% more than Boomers earned at that age. Wealth figures are similarly favorable: young Millennials and older Zoomers have a median net worth 39% higher than past generations at the same stage of life. Unemployment rates for 16–27-year-olds reached a half-century low in June.
However, this doesn’t mean Gen Z faces no hurdles. The housing crisis makes homeownership increasingly unattainable, with over half of Gen Z renters burdened by high housing costs. Student loan debt remains a significant drag, as tuition has more than doubled in inflation-adjusted terms compared to the Boomer generation. Despite these challenges, Gen Z as a whole is still in better economic shape, with spending on housing and education remaining consistent with earlier generations.
The AI Threat: A Real Concern
The rise of artificial intelligence introduces a legitimate new dimension to Gen Z’s economic anxieties. AI is automating tasks traditionally performed by entry-level workers, potentially shrinking career ladders before they can climb them. Hiring for junior roles in AI-exposed industries has slowed, and the share of unemployed recent college grads has ticked up since the advent of ChatGPT. While long-term impacts are uncertain, AI could exacerbate existing economic pressures, making early career prospects precarious.
The Social Media Factor: Doomscrolling and Disconnect
Why does this disconnect between material reality and perceived hardship exist? Gen Z’s pessimism isn’t solely about economics; it’s also shaped by the way they consume information. Social media algorithms prioritize negative content, creating a distorted view of the world. Constant exposure to curated lifestyles and exaggerated crises breeds social comparison and anxiety. Studies confirm that heavy social media use correlates with lower subjective well-being, as users overestimate how well others are doing.
Further, Gen Z reports higher rates of loneliness, less social interaction, and declining rates of sex and relationships. These social deficits amplify feelings of isolation and doom, coloring their perception of economic prospects. The constant bombardment of negative news and filtered realities may exacerbate existing financial stressors, leading to a self-reinforcing cycle of despair.
The Rise of Extremism: A Symptom, Not the Cause
The disturbing trend of extremist sympathies among some young conservatives, as reported by Rod Dreher, is likely a symptom of broader disillusionment, not a direct result of economic hardship. While some attribute neo-Nazi leanings to financial desperation, the causal link is tenuous. The more probable driver is a combination of social alienation, ideological radicalization, and the echo chambers of online extremism.
Conclusion
Gen Z’s economic situation is complex, not simply “screwed.” While facing real challenges—especially with housing, debt, and AI-driven job displacement—they outperform past generations by many metrics. The pervasive sense of doom is fueled by distorted perceptions, amplified by social media, and exacerbated by social isolation. Addressing this requires not just economic reforms but also a critical reevaluation of how young people consume information and build meaningful connections in the digital age.
