Johann Kurtz’s essay on why younger generations feel left behind economically, even while official statistics from GDP to stock markets send signals that our economy is thriving, touched a nerve.
Kurtz’s central argument is that young people only appear to be doing fine in official statistics because those measures fail to capture the collapse of “social capital”—the free inheritance of trusted neighbors, functional public schools, safe streets, and marriageable norms that previous generations received at no cost. Because that commons has been liquidated and privatized, young people must now repurchase its components individually at market prices. Expensive homes in good districts, private schooling, daycare, credentials, and more—all of it requires substantial financial resources, even as incomes have risen only modestly. Meanwhile, the cost of these essentials has increased many times over.
The result is a measurement failure: cheap electronics and rising nominal incomes make the young look prosperous, but the actual building blocks of a middle-class life have moved beyond the reach of average Americans, which explains why younger generations are delaying or forgoing them entirely.