Amid the shimmer of city lights and the relentless pace of modern life, a silent unease grips the youngest generation of Americans. As the nation steers toward the momentous 2024 election year, economic stress is the specter that haunts their nights, rendering the American Dream increasingly elusive for many.
Financial services company Empower sheds light on this phenomenon through a comprehensive survey, revealing that 73% of American spenders and savers wrestle with financial anxiety, 56% of Gen Z and 51% of Millennials admit that their fiscal woes disrupt their sleep. This disquiet starkly contrasts the relative composure of their predecessors, with only 37% of Gen X and a mere 20% of Baby Boomers sharing this nocturnal unrest.
Economic Stress Is Keeping Young Americans Up At Night Heading Into 2024, Survey Finds https://t.co/xsMIkLw4EW
— James Hirsen (@thejimjams) November 24, 2023
The Empower report comes when the country’s economic forecast casts long shadows. October’s Leading Economic Index (LEI) intimates a pending recession, with a 0.8% dip and a 3.3% six-month downturn signaling turbulent times ahead. Michael Faulkender, Chief Economist and Senior Advisor for the Center for American Prosperity, voices concern over low consumer expectations and tightened credit — a one-two punch to an economy where consumer spending accounts for a substantial portion of national output.
Housing emerges as the crucible of this stress, particularly for the younger generations, with 67% of Gen Z and Millennials citing the surge in home costs and mortgage rates as primary stressors. In a property market that sees a mere 39% of adults under 39 owning homes, the promise of a personal haven seems a distant reality for many. Yet, there’s a glimmer of reprieve as mortgage rates show a slight retreat.
This financial strain extends beyond mere homeownership, dampening the overall sense of prosperity. With 81% of Americans feeling the pinch of rising costs and 66% burdened by interest rates, the fabric of financial security appears frayed. Over half of all generations carry debt, and the thought of an unforeseen expense over $500 sends a chill down the spine of 36%.
The younger cohorts, laden with debts, express a poignant lack of confidence in their financial preparedness for retirement. With 67% of Gen Z and 59% of Millennials feeling unready and Gen Z lagging in retirement contributions, the path to financial independence is uncertain.
Income stagnation coupled with inflation exacerbates this unease, with 67% of Americans finding their earnings insufficient to match the rising cost of living and 42% perceiving a decline in their standard of living. Aware of the discontent, the Biden administration strives to recalibrate the narrative of “Bidenomics,” confronting economic pain while spotlighting policy triumphs.
As a counterpoint, President Donald Trump, the presumptive GOP presidential candidate next year, touts an economic blueprint prioritizing domestic production and penalizing companies offshoring American jobs. Reflecting on his previous tenure, a 2019 poll revealed a sentiment of economic contentment among 76% of workers, the highest in two decades.
As the nation moves forward, the threads of economic discourse will inevitably intertwine with the fabric of political strategy. The Empower report casts a stark light on the financial anxiety permeating the American ethos, particularly among its youth.