Every Generation Better Than the Last
The long-held assumption of parents in America used to be that their children would do better than they did. For generation after generation, that was not only a belief but a verifiable fact.Consider, for example, why our great-grandparents, grandparents, and parents all had confidence in the American way of life. That confidence was based on the very fundamental idea that Americans can better themselves and their lives through hard work, thrift, wise investments in land and home ownership, technology, the stock market, and, of course, by investing in themselves by starting small businesses.
In fact, those factors, especially the small businesses that flourished or became big corporations, were what created the American middle class. Not only did the middle class drive the expanding economic pie, but it shared in it as well, as did those in lower economic strata. American economic life was dynamic. A person starting from zero or, in the case of penniless immigrants without language skills, less than zero could still make something of themselves in America.
The American Idea Still Works—If Allowed To
What’s more, it was recognized by immigrants from less free or even tyrannical nations (and still is by at least legal immigrants) that America’s success was driven by the rights guaranteed to every American by the Constitution. In other words, in America, progress, whether it be technological, economic, or social, was more or less a given, with the occasional disruption of the Civil War, the Great Depression, two world wars, or a financial crisis.But even those disruptions were, for most of the country, relatively short-lived. America continued to rapidly develop in every aspect, with a national identity that included a can-do attitude. People believed in the country.
And why wouldn’t they have thought that?
For 2 1/2 centuries it was true. Every generation surpassed the one that came before it in terms of quality of life, technological innovation, and opportunity.
3 Negative Factors Gen Z Faces
How can the conditions and futures of Gen Z Americans—and the future of the country, to be truthful—be turned around in the right direction?The first factor—and the most important—is belief. Too many Gen Zers lack faith in themselves or the society that has given them one of the highest standards of living in the world. On the one hand, everything is within reach. On the other hand, they’ve been told through widespread socio-cultural and educational influences that they live in a rotten country and that they can’t be successful without the government ensuring their success through handouts and subsidies.
Gen Z needs to adopt the same belief in themselves and in the country that prior generations had. Without belief in oneself or one’s country, there’s little motivation for making the effort to work hard to better oneself.
The second factor is the loss of adult rationality. Too many Gen Zers internalize broad but irrational ideas that inhibit their development into fully functioning adults. Part of this is due to the technological and digital impact on society. On the technology front, young tech workers’ expectations are out of sync with their work status. Not everyone can be a mogul, buy a house at 22, work from home, and have a month or two off.
The reality is that most jobs are nine-to-five situations, and many of the most successful business owners started there. For example, Jeff Bezos worked at McDonald’s. Elon Musk lived in a rented office because it was cheaper than an apartment. He showered at the YMCA. Those are just two examples of many.
At the other extreme, some tech firms are offering classes on “adulting” at their campuses, where their employees work, live, and shop. They’re paid very well, use rideshare services to get anywhere, have their meals delivered, and shop and socialize online. Taking on adult responsibilities is almost completely avoidable. That reality doesn’t apply to most of Gen Z, but many believe they deserve it anyway.
The third factor is based on federal government policies. Deficit spending, for example, is driving inflation, as are high taxes (both personal and corporate rates) and complex regulations. These factors alone make starting a business difficult. What’s more, the financially devastating lockdowns during the COVID-19 pandemic destroyed one out of five small businesses, and wasteful federal handouts reduced the incentive for many Gen Zers to work hard.
A Few Suggestions to Get Gen Z on the Ladder
How can Gen Z and America get back on the ladder? A few suggestions come to mind.One would be to create entrepreneur zones in cities across the country with zero or near-zero federal tax rates. Instead of raising corporate taxes, which either raise prices or just push companies offshore, give corporations tax credits for providing interest-free loans or grants to entrepreneurs.
Another would be to encourage businesses to create apprentice-type roles for Gen Zers that don’t require high-debt university degrees.
And finally, with regard to housing, why not allow mortgage holders to transfer their loans to new homes, subject to similar or higher value guidelines, to increase the supply of existing housing?
To a large extent, the federal government has created this mess. It’s time it started incentivizing work, business, and employment instead of hindering them.
