A Generation Priced Out
Millennials didn’t wake up one day and decide to question capitalism. The system pushed them away, brick by brick, with soaring student debt, stagnant wages, and a housing market that feels like a cruel joke. Chamath Palihapitiya, a venture capitalist with a knack for stirring the pot, recently argued on X that young people aren’t ideologically opposed to markets. They’re simply priced out. He’s not wrong, but his diagnosis skims the surface of a deeper wound: a rigged economy that rewards the few while leaving millions scrambling.
Take Sarah, a 32-year-old teacher in Chicago. She’s buried under $60,000 in student loans, rents a one-bedroom apartment she can barely afford, and hasn’t saved a dime for retirement. Her story isn’t unique; it’s the millennial norm. Over half of young adults under 40 carry student debt, with the average balance hovering around $24,000. Homeownership, once a cornerstone of the American Dream, feels like a fantasy when starter homes in major cities cost half a million dollars. This isn’t a failure of ambition. It’s a failure of the system.
The frustration runs deeper than numbers. Millennials came of age during the Great Recession, watching their parents lose jobs and homes while Wall Street got bailouts. They entered a job market that offered gig work over stability, and now they’re told to hustle harder. The promise of hard work leading to prosperity feels like a bait-and-switch when billionaire wealth soars by $1.4 trillion in a single year, while most young people can’t afford a down payment. This isn’t just economic exclusion; it’s a betrayal of trust.
Palihapitiya’s point about millennials being priced out resonates, but his framing sidesteps the structural forces at play. The issue isn’t just high costs; it’s an economy tilted toward the wealthy, propped up by policies that favor corporate giants and the ultra-rich. To fix this, we need more than clever tweets. We need bold, systemic change.
The Myth of Moral Lectures
Some argue that millennials need to pull themselves up, embrace entrepreneurship, or simply work harder. This tired narrative, often pushed by those who benefited from a more forgiving economy, ignores reality. The data paints a stark picture: millennials hold over $869 billion in student debt, with 40% of households headed by young adults owing loans in 2022, up from 19% in 1994. Wages have barely budged in decades, while housing costs have skyrocketed. Telling young people to ‘hustle’ in this environment is like telling someone to swim faster in quicksand.
The backlash against figures like Elon Musk or companies like Tesla, which Palihapitiya flags as millennial resentment, isn’t about hating success. It’s about what Musk represents: an economy where billionaires amass wealth at unprecedented rates while ordinary workers struggle. Oxfam reports that 60% of billionaire wealth comes from inheritance, monopolies, or cronyism, not innovation. When young people see Musk’s fortune grow while they’re drowning in debt, it’s not jealousy. It’s outrage at an unfair game.
Advocates for unfettered markets claim that reducing regulations or cutting taxes will unleash opportunity. Yet decades of trickle-down policies have only widened the gap. Since the 1980s, tax breaks for the wealthy and deregulation have fueled inequality, leaving millennials with less wealth than their parents had at the same age. The top 1% now hold more wealth than the bottom 90%. If markets were truly competitive, why do so many feel the deck is stacked?
Millennials aren’t rejecting capitalism itself; they’re rejecting a version that shuts them out. They value entrepreneurship—70% believe competition is good—but they want a system where the rules aren’t written by the winners. This is why 71% of millennials support a strong middle class as the backbone of a healthy economy. They’re not asking for handouts. They’re demanding a fair shot.
A Path to Rebuild Trust
Restoring faith in the economy starts with tackling the barriers millennials face. Student debt forgiveness, like the plans proposed by policymakers such as Elizabeth Warren, could free millions from financial shackles. Refinancing loans at lower rates and making public college free for families earning under $125,000 would ensure education is a path to mobility, not a lifelong burden. These aren’t radical ideas; they’re investments in a generation’s potential.
Housing reform is another urgent need. Policies like expanding affordable housing and capping rent increases could make homeownership attainable again. In high-cost states, where millennials are 66% renters, such measures would provide stability and a chance to build wealth. Pair this with raising the minimum wage to a living standard, and you begin to create an economy where hard work actually pays off.
Taxing extreme wealth is non-negotiable. A Billionaire Minimum Income Tax, supported by a majority of Americans, would curb the runaway inequality that fuels resentment. Closing loopholes that let the ultra-rich dodge taxes could fund healthcare, education, and infrastructure—public goods that benefit everyone, not just the elite. These policies aren’t about punishing success; they’re about ensuring the system works for more than the top 1%.
The pandemic laid bare the fragility of the current system, with millennials hit hardest by job losses and financial strain. Yet it also showed what’s possible: stimulus checks, eviction moratoriums, and expanded unemployment benefits kept millions afloat. Scaling up these protections through federal job guarantees or universal basic income could provide the security millennials crave, proving that government can be a force for good.
The Stakes Are High
Millennials’ skepticism isn’t just a generational quirk; it’s a warning. If the economy continues to exclude young people, distrust will deepen, and calls for drastic change will grow louder. The 60% of millennials who believe government favors the wealthy won’t be swayed by platitudes about free markets. They need tangible solutions that address their lived realities.
The path forward lies in bold action: forgiving student debt, making housing affordable, taxing extreme wealth, and investing in the middle class. These steps won’t just help millennials; they’ll rebuild an economy that works for everyone. The alternative—doubling down on a broken system—risks alienating a generation and eroding the social fabric. The choice is clear. It’s time to act.