The concept of generations is rooted in the idea that individuals born during a specific time period tend to share similar experiences, which influence their attitudes and perspectives. The “Greatest” and “Silent” generations, who were born in the early 20th century, faced economic hardships and global conflicts, leading to relatively left-leaning viewpoints. In contrast, baby boomers experienced post-war growth and prosperity, which contributed to their strong conservative leanings.
Millennials also entered adulthood under challenging circumstances, particularly after the global financial crisis, facing high unemployment rates, stagnant income growth, and rising housing costs. As a result, they have largely embraced progressive political ideologies.
While millennials and Generation Z are often grouped together due to similar struggles in achieving the prosperity witnessed by earlier generations, the accuracy of this generalization varies depending on the context. Millennials across Western nations experienced economic difficulties. From the United States and Canada to the UK and Western Europe, those born in the mid-to-late 1980s navigated their formative years amid weak wage growth and declining homeownership rates.
Data reflects a marked decline in absolute upward mobility, which measures how much more young people earn relative to their parents at the same age. For instance, in the United States, a person born in 1985 had an average income only slightly higher than that of their parents at the same age, contrasting sharply with the significant gains of previous generations.
The narrative of millennial economic hardship is supported by data showing that they might be the most economically disadvantaged generation in the past century. However, the situation differs significantly for younger adults in Britain and many European countries, where conditions have worsened since millennials came of age. Notably, those born in the mid-1990s in the UK have witnessed actual declines in living standards, compounded by broader economic challenges across Europe.
Conversely, Generation Z in the United States is witnessing improvement in living standards, averaging 2.5 percent annual growth since the late 1990s cohort reached adulthood, providing them with greater upward mobility compared to their millennial predecessors—and even more than what young boomers experienced at the same age. This progress is reflected in housing market trends as well.
The contrasting economic fortunes of young Americans and their European counterparts raise several sociological questions. With the prevalence of social media reflecting negative narratives, how will the reality of a more prosperous Generation Z in the U.S. influence perceptions of young adults in Europe? Additionally, politically, Generation Z voters in the U.S. might chart their own course, illustrated by surprising shifts in support towards candidates like Donald Trump among young men and women, suggesting attitudes may diverge from those of previous disillusioned cohorts.
The shift from feelings of downward mobility to a new sense of prosperity among American youth could represent one of the most significant societal changes yet. Such a divergence in experiences and sentiments across the Atlantic may also intensify Europe’s pursuit of its own economic recovery.
photo credit: www.ft.com
