We millennials and Zoomers are unfairly complaining that we don’t have money, since it seems like it’s only a matter of time before we become the richest generation in history. That, at least, is what a new study by the real estate company claims Knight Frank, according to which, within the next 20 years there will be an unprecedented transfer of wealth from older generations to people born from 1981 to 2000. In general, today’s young people will inherit the wealth of their parents and grandparents, and everything will they are doing well. In the US alone, $90 trillion in assets will move between generations. So, have we solved our problems? Obviously not.
The value of the assets that will be gathered, of course, depends on the financial ability of their parents. Thus, class inequality is predicted to widen, since the determining factor in the success of millennials will be, more than ever, the financial background of their family.
The above conclusion may seem obvious to most: people with rich parents will accumulate more wealth and, therefore, become increasingly wealthy and successful. Ali to the rest. However, the fact that it is obvious does not mean that it is negligible. The narrative of capitalism was based on the idea that with hard work and enough talent, anyone can succeed. And may the best win! Long live meritocracy! But with the current situation, this idea is collapsing before our eyes.
“Young people believe that success is out of their control”
If the baby-boomers (born between 1946 and 1964) chose a profession with immediate professional rehabilitation, dedicated themselves to their studies, learned 2-3 foreign languages and saved, they would expect to advance financially compared to their peers. Today, however, the road to financial success is not paved with clear rules. Everything is more arbitrary. A millennial could follow all of the above steps and still fall short of their peers, who just happened to be born into a more affluent family, thus having a serious financial head start. Doesn’t he go to save money, cut out the coffees outside and shop on the street only in the last few hours just before closing? It doesn’t matter…
From the generation gap to the inequality gap
Back to Knight Frank’s findings, after their first survey they released another one supplementary in which they emphasize that those who are already “affluent” will become even more affluent, resulting in them becoming part of the “richest generation in history” in the near future. This massive transfer of wealth is predicted to worsen economic inequality worldwide. “There is a huge divide: 71% of the planet lives in a country where inequality is increasing,” the report says.
The environmental impact of the unequal distribution of wealth was also highlighted in a recent report Oxfam, which found that the “richest 1% of the world’s population” is responsible for the same amount of air pollution as the five billion people who make up the poorest 66% of the world’s population. More simply, the 1% of the richest people on earth – what we call the global elite – produce as much pollution as all the poor on earth. This imbalance will be another “burden” that the new generation will have to face.
When it comes to financial success, there is growing evidence that younger generations are developing a radically different mindset than their forebears. This shift is evident, among other things, through the findings of a 2022 British survey by the economist Ben Ansell, which analyzed the country’s justice and socio-economic mobility. According to this survey, young people are far less likely (than older people) to believe that financial success depends on individual effort – the majority believe it is more due to external factors.
I don’t think anyone is shocked at the idea that the generation that still lives in their parent’s house to save money, or that gives half their salary to rent, is not very promising for the future. Less than 1/3 of under 30s think it would be a good opportunity to buy a home. On the other hand, just under 2/3 of those over 70 believe they had this opportunity. “Old people think they’ve made it on their own (or at least that’s what everyone should do),” Ansell writes, adding: “Young people think success is out of their control.”
No, we don’t need to find out who is right and who is exaggerating. Actually, both generations are right. The Boomers certainly benefited from a more meritocratic society (and perhaps some financial luck as well). Indeed, those who practiced their inclinations and talents, educated themselves and worked hard, could taste the fruits of their labors. They wouldn’t become tycoons, but they could buy a house (maybe even a summer house), leaving something to their children. Therefore, their success was directly influenced by their individual effort and achievements. The same, unfortunately, is not true for millennials and Gen Z. Take, for example, the real estate market. In 1981 the average person bought a home at the age of 31, while in 2023 the age of the average buyer has increased to 49! Of course, the above refers to the average citizen, since for a first-generation immigrant or someone from a working-class background, it stands to reason that buying a property seems like an even bigger feat.
A “game” with fixed rules
The social consequences of the above have already begun to become apparent. How can one remain optimistic when it feels like the game is stacked against them? How can he maintain his appetite and sanity in a sinking economy? This could partly explain why Millennials and Gen Z Piwear more often from depression and anxiety in relation to their parents. Deloitte’s 2021 “Millennial & Gen Z” survey showed that the three most important concerns for Greek millennials are unemployment (35%), economic growth (30%) and health threats (27%), while for Gen Z unemployment (42%), economic growth (29%) and the effects of climate change. In fact, the pandemic has significantly increased stress and anxiety levels around finances, family well-being and job prospects for everyone, often affecting their work performance. 61% of millennials in Greece and 76% of Gen Z say that their professional prospects create a lot of anxiety and stress.
“The narrative that hard work pays off doesn’t convince the majority of the youth.”
Millennials (54%) and Gen Z (23%) feel stressed at work around the clock or most hours, and when it comes to their financial concerns, it seems that these are increasingly of concern to young people – the the same applies to inequality in the distribution of wealth. In fact, most millennials (86%) and 75% of Gen Z respondents believe that wealth and income are unequally distributed across society.
In short, the narrative that hard work pays off does not convince the majority of the youth. We often hear that “life isn’t fair”, but for better or worse society is based on the idea of some absolute justice. All modern societies were built on this belief in law. In a world where young people feel every day more and more “naked” in the face of injustices, it makes sense that pessimism is “worn” more.
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