Fortune: Younger Americans Are Less Likely to View Capitalism Positively
Americans under the age of 50 are now significantly less likely to view capitalism favorably than members of the same age group were in 2010. This is discussed in a Fortune op-ed about the differing economic experiences of baby boomers, Generation X, millennials, and Generation Z.
The author notes that aggregated data from Bank of America on credit card spending indicates active consumption among Gen Z members. At the same time, according to the columnist, this does not necessarily mean support for capitalism as a way of organizing economic life: people still have to pay for housing, essential goods, and debts.
The article notes that following the 2008 financial crisis, the value of assets—housing, stocks, and investment portfolios—grew faster than wages and employment. This gave an advantage to people who already owned assets before the crisis. According to the author, baby boomers managed to accumulate housing equity and retirement savings, while some older millennials took advantage of low interest rates on 30-year mortgages.
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Younger millennials and members of Gen Z found themselves in a more difficult situation: they entered the labor market during less favorable periods and later faced rising housing prices and interest rates. Gallup data cited by Fortune shows that older Americans’ views on capitalism have changed less over this period.
The publication also cites a survey by Gallup and the Walton Family Foundation, which found that Gen Z’s trust in key institutions is low: 16% of respondents expressed confidence in the news media, 17% in technology companies, and 23% in the criminal justice system.
Separately, the author notes a decline in Americans’ labor force participation—from approximately 62.5% in November to 61.4% in July. According to economists at the Federal Reserve Bank of St. Louis, the sharpest decline was concentrated among people aged 25–54. At the same time, the U.S. unemployment rate stood at 4.1%, and GDP growth remained moderately positive. Economists offer various explanations for these trends, citing an aging population, a decline in immigration, and a loss of hope among some people in their search for work.
