The wealth divide is exacerbated by two different types of inflation. While wages are benchmarked against CPI (consumer goods), wealth for asset-holders grows with "asset price inflation" (stocks, real estate), which compounds much faster. Young people paid in cash cannot keep up.

Brands like Sweetgreen and Allbirds, once buoyed by VC funds, are struggling. They had to raise prices to achieve profitability just as their core millennial customers faced inflation and job insecurity, leading to a collapse in demand and stock value.

The unemployment rate for college-educated young men has surged to 7%, matching that of their peers without a degree. This parity indicates that a traditional degree's value in securing entry-level employment is eroding for this demographic, challenged by AI automation and increased competition from experienced workers.

Young people feel a sense of betrayal after following the prescribed path—good grades, college—only to graduate with immense debt into a job market with few opportunities and an unaffordable housing market. This broken promise fuels their economic anxiety.

The difficulty in hiring young talent is not a temporary trend but a "new ice age." It is driven by a smaller Gen Z population compared to millennials. The problem will worsen: within a decade, more people over 65 will be leaving careers than 16-year-olds are starting them, creating a long-term demographic crisis for employers.

Young people face a dual crisis: economic hardship and a psychological barrage from social media's curated success. This creates a "shame economy," where constant notifications of others' fake wealth intensify feelings of failure, loneliness, and anxiety more than any other societal factor.

The dramatic rise in BNPL usage across all demographics, including 41% of young shoppers, is a negative forward-looking indicator. While framed as innovation, it's a form of modern usury that reveals consumers cannot afford their purchases, creating a significant, under-discussed credit risk for the economy.

Despite economic pressures, Millennials and Gen Z still desire traditional success milestones like homeownership. The key difference is that the path is no longer linear and the timeline has shifted. Financial planners must adapt their advice to this new, less predictable journey.

The struggles and pathologies seen in young men are not just an isolated gender issue. They are a leading indicator that the broader societal belief in upward mobility—'we can all do well'—is eroding. This group is the first to react when reliable paths to success seem blocked.