Why the youngest generations are giving up on dreams they never had a chance to achieve.
The American Dream is crumbling, and anyone paying attention can see it. What was once a beacon of hope and opportunity has become a cruel joke for the youngest generations. For Gen Z and Gen Alpha, the promise of a good life through hard work feels like a relic from a different era. It’s like being handed a beautifully wrapped gift box only to open it and find nothing but broken pieces.
The cost of living is skyrocketing, jobs that pay a decent wage are few and far between, and the dream of owning a home is laughable at best. What used to be the standard blueprint for success now feels more like a myth than a reality. It’s not just that the American Dream is out of reach—it’s that it was never built for them to reach in the first place.
1. Skyrocketing housing costs have made homeownership a joke.
For older generations, owning a home was considered a basic part of adulthood. But for Gen Z and Gen Alpha, it’s a pipe dream. Housing prices have soared so high that even a modest starter home feels completely out of reach, writes Giulia Carbonaro in a Newsweek article. The combination of stagnant wages, crippling student debt, and runaway real estate prices makes saving for a down payment nearly impossible. And renting isn’t much better. With landlords jacking up rents left and right, many young adults are stuck in a cycle of paycheck-to-paycheck living.
The idea of building equity and stability through homeownership is something they can’t even consider. It’s not just discouraging—it’s infuriating. When the foundation of the American Dream is homeownership and that’s ripped away before you even have a chance, how are you supposed to believe in anything else it promises?
2. Stagnant wages are keeping them stuck in survival mode.
The whole “work hard and get ahead” mantra feels like a slap in the face to these generations. Wages have barely budged in years, and it’s not because people aren’t working hard, says Ginger Christ writing for HR Dive. It’s because the system is rigged to keep profits flowing to the top while everyone else fights for scraps. You can work two or three jobs and still barely scrape by, all while being told you’re just not trying hard enough. That kind of rhetoric feels more like gaslighting than motivation.
And it’s not like employers are stepping up to the plate. Instead, they’re offering gigs, part-time roles, and “opportunities” with zero benefits or stability. When you’re so focused on just getting by, dreams of upward mobility feel like some kind of cruel joke. It’s no wonder Gen Z and Gen Alpha feel betrayed by a system that was never built to support them.
3. Crushing student debt is robbing them of their futures.
For generations that were told education was the key to success, the reality of student debt is nothing short of devastating. Going to college used to be about investing in your future. Now, it feels more like taking on a lifetime of financial misery. Instead of entering the workforce with a clean slate, young adults are being buried under tens of thousands of dollars in debt before they even land their first decent job, according to Suzanne Blake in an article for Newsweek. And if you’re lucky enough to find a well-paying job right out of school, you still spend years playing financial catch-up.
The idea of saving for a house, starting a family, or even taking a mental health break feels impossible when you’ve got monthly payments hanging over your head like a guillotine. It’s a brutal reality that makes the American Dream feel like a bad joke Gen Z and Gen Alpha were forced to laugh at.
4. A broken healthcare system is keeping them one emergency away from disaster.
For Gen Z and Gen Alpha, healthcare is less of a right and more of a luxury. And it’s terrifying. One accident, one illness, or one medical emergency can send everything spiraling out of control, says Dr. Chavi Karkowsky in an essay for the New York Times. Health insurance is often tied to jobs that don’t even offer decent pay, and the plans that are affordable tend to have deductibles so high you practically have to be rich to use them. Even with insurance, medical bills can destroy whatever financial progress you’ve made.
The stress of wondering if you can even afford to get sick is exhausting. And when you’re living with that kind of anxiety, how are you supposed to believe in a future where hard work pays off? The American Dream is supposed to be about security and opportunity, but the healthcare system is turning it into a nightmare Gen Z and Gen Alpha can’t wake up from.
5. Unaffordable education is slamming the door on opportunity.
Higher education was once seen as the ticket to a better life. But now, it’s just another barrier keeping young people locked out of the American Dream. College tuition has skyrocketed to absurd levels, leaving many to question if a degree is even worth the crushing debt it brings. The sad truth is, people are forced to gamble their financial futures on an education system that doesn’t always pay off. And for those who can’t afford it or choose not to take on the debt, they’re stuck watching opportunities slip away.
Trade schools and alternative education paths are out there, but the stigma attached to not having a college degree still runs deep. It’s a vicious cycle where the pursuit of education feels more like a financial trap than a path to success.
6. The gig economy is robbing them of stability and benefits.
The so-called “flexibility” of the gig economy might sound appealing, but for most young people, it’s nothing more than exploitation dressed up as opportunity. When employers can hire workers on a temporary, freelance, or contract basis, they avoid providing essential benefits like healthcare, paid leave, and retirement plans. Gen Z and Gen Alpha are left piecing together income from multiple gigs just to get by.
And while they’re hustling to make ends meet, the idea of building a stable future feels laughably out of reach. Job security? Forget it. The gig economy has made it the norm to be disposable. And without any kind of safety net, dreams of financial independence or even basic security are fading fast. It’s a brutal reality that makes the American Dream feel more like a cruel illusion than something anyone can realistically achieve.
7. Climate change is stealing their future before it even begins.
Gen Z and Gen Alpha are inheriting a planet that’s in crisis. Wildfires, hurricanes, heatwaves, floods—you name it, they’re living through it. The terrifying part is that they didn’t create this mess, yet they’re the ones expected to fix it. Climate change isn’t just an environmental issue; it’s a social and economic disaster that’s already making everyday life harder.
Rising costs of living, food insecurity, and constant anxiety about the future make it nearly impossible to focus on anything else. When the air you breathe and the water you drink are at risk, how can you even think about building a life? For younger generations, the American Dream is suffocating under the weight of environmental collapse, and no amount of “hard work” is going to change that harsh reality.
8. The wealth gap is growing wider by the day.
The rich keep getting richer while everyone else fights just to stay afloat. For Gen Z and Gen Alpha, the idea of economic mobility feels like a cruel joke. They’re watching billionaires grow their fortunes by the minute while they’re struggling to cover basic expenses. With wages stagnating and the cost of living skyrocketing, the possibility of building real wealth feels further away than ever.
The American Dream was supposed to be about equal opportunity, but how can that be true when the deck is so blatantly stacked against them? It’s demoralizing to work hard and get nowhere while a select few enjoy unimaginable privilege. The wealth gap isn’t just an economic issue; it’s a societal betrayal that’s robbing younger generations of any hope for a better future.
9. Political corruption is crushing their hope for change.
You can’t scroll through social media without seeing people talking about how rigged the system is. Politicians make big promises about fighting for the people, but once elected, they cater to corporations and the wealthy instead. For Gen Z and Gen Alpha, this cycle of empty promises feels endless. When the people in power seem more interested in their own agendas than actually solving real problems, it’s hard to believe the American Dream is even a possibility.
It feels like every attempt at meaningful change gets buried under bureaucracy or blatant corruption. And when the rules are stacked against you, how can you even begin to believe that hard work and perseverance will ever pay off? The dream has become nothing more than a political slogan that’s been emptied of all meaning.
10. Toxic hustle culture is making burnout the new normal.
The constant pressure to hustle and grind is destroying the idea of work-life balance for Gen Z and Gen Alpha. They’ve been told that if you’re not working 24/7, you’re not working hard enough. And it’s killing them. The glorification of nonstop productivity has made it feel like success is only achievable if you’re willing to sacrifice your mental health, relationships, and overall well-being. But chasing the American Dream shouldn’t feel like a punishment.
When you’re exhausted, overworked, and drowning in unrealistic expectations, it’s hard to believe there’s a better future waiting for you. Burnout has become so normalized that admitting you need a break feels like failure. And when your best efforts still aren’t enough to get ahead, it’s easy to see why younger generations feel like the American Dream is nothing more than a cruel fantasy designed to keep them running in circles.
11. Social media is distorting their sense of reality.
Social media was supposed to connect people, but for Gen Z and Gen Alpha, it’s become a breeding ground for comparison and insecurity. Platforms like Instagram, TikTok, and Twitter constantly bombard them with images of wealth, beauty, and success that are often exaggerated or completely fake. Trying to live up to those unattainable standards is a recipe for disappointment.
It’s hard to feel satisfied with your life when everyone else appears to be thriving. The constant comparison leaves them feeling like failures before they even have a chance to start. And it’s not just personal aspirations that take a hit. Social media also warps their understanding of what’s truly possible in a world where influencers flaunt lavish lifestyles with seemingly minimal effort. It creates an illusion that success is just about luck and popularity rather than hard work and perseverance, making the American Dream feel even more out of reach.
12. Mental health struggles are overshadowing everything else.
Mental health issues are on the rise for Gen Z and Gen Alpha, and it’s not hard to see why. They’re growing up in a world that feels increasingly hostile, unpredictable, and unfair. Anxiety, depression, and other mental health struggles are becoming so common that they’re almost considered the norm. But the stigma surrounding mental health care hasn’t fully disappeared, and access to affordable, quality treatment is still a huge barrier.
When you’re fighting your own mind just to get through the day, chasing the American Dream feels impossible. And when society dismisses your struggles as weakness or laziness, it only makes the burden heavier. The truth is, mental health isn’t just another obstacle on the path to success—it’s a fundamental part of well-being. Without addressing it, expecting younger generations to thrive in a broken system is nothing short of cruelty.