Young Americans today are richer than ever before. According to a new report from the Treasury Department, people under 40 have seen their wealth skyrocket in recent years. But there’s a catch: despite this financial boom, many feel more economically vulnerable than ever. Why is this happening? Let’s break it down.
The Paradox of Wealth
In 2022, the median wealth for Americans aged 25 to 39 hit $80,500. That’s a huge jump from $23,750 in 2010, even after adjusting for inflation. On paper, younger generations are thriving financially. But that’s only part of the story.
Treasury Secretary Janet Yellen has pointed out a troubling contradiction. In a speech last October, she highlighted a growing “sense of alienation” and “deep dysfunction” in people’s lives. This unease is reflected in rising “deaths of despair,” a term coined by economists Anne Case and Angus Deaton to describe deaths from suicide, drug overdoses, and alcohol-related causes.
What’s Driving the Fragility?
Although wealth is up, careers are struggling to keep pace. The pandemic, for instance, turbocharged personal wealth through stimulus checks and a booming stock market. But at the same time, it disrupted how we work. Remote jobs have made mentorship and hands-on learning harder, and younger employees are often competing with older, more experienced workers for top positions.
On top of that, everyday costs are rising faster than incomes. Housing prices have soared, making rent and homeownership out of reach for many. Child care, health care, and education are all more expensive than they were a decade ago. For young Americans trying to get ahead, these rising costs are a huge barrier.
A Tough Job Market for Men
For young men in particular, the job market has been getting tougher for years. Over 61% of men between 25 and 39 don’t have a college degree, and their real earnings have been dropping for three decades. To make matters worse, about 42% of Americans in this age group with student loans didn’t even finish their degree—so they’re stuck with debt but no diploma to show for it.
The proportion of young men with jobs has also fallen. Back in 1990, nearly 95% of men in this age group were employed. Today, that number has been below 90% for more than a decade.
The Big Picture
It’s not all bad news. The report points to some positive changes: better access to education, less discrimination in the workplace, and rising household wealth. These improvements have undoubtedly made life better in many ways.
But for many young people, the challenges—from student debt and stagnant wages to skyrocketing rents—overshadow the progress. They’re also setting higher financial goals for themselves, believing they need enormous sums of money to feel secure or successful. This mindset only adds to the feeling of economic fragility.
Why It Matters
This disconnect between wealth and well-being is reshaping how young Americans see their future. Rising discontent, especially among young men, has far-reaching implications for society. As we continue to navigate this paradox, addressing the root causes—like job market challenges, rising costs, and mental health issues—will be key to ensuring younger generations don’t just survive but thrive.
