Since the COVID-19 pandemic, the U.S. gross domestic product (GDP) has been steadily increasing. The U.S. has made more money off of manufacturing and consumers, and the GDP rates have recovered from the fall they had during lockdown. However, the benefits of increasing profits only go to select people, with a large part of Generation Z not being part of this group. Those in this generation are struggling more than ever to afford things like college or houses because of their unlivable wages and the rising prices of goods, according to whitehouse.gov.

With minimum wage jobs not being able to cover the costs of renting a home and general monthly costs, some of Generation Z will continue their education in hopes of making more money. This means going to college or trade school, which most likely ends in paying off tuition and can very quickly cost a lot of money. Over half of the students that got a bachelor’s degree in college graduate with debt. The average amount of student debt is $29,100, and the total amount of student debt in the U.S. is over one trillion dollars. This amount of debt has increased by 50% since 2013, and will continue to rise. This means they have to be able to live with almost $30,000 of debt and be able to pay it on time each month, while also juggling rent and other necessary expenses, according to bankrate.com.

Some people say that they could just live with roommates and split the payment, but even this is a risky bet to make. Bidding wars and increasing monthly payments make it hard for Generation Z to get any housing, even with others. As a general rule, rent or mortgage rates should not go over 30% of a person’s monthly income. However, for the younger generations, this is not a realistic possibility. Monthly payments for housing are becoming more and more expensive, but wages and monthly incomes are not increasing with it. One survey said that over a third of Generation Z believed they would never be able to afford a house of their own and would have to live with their parents, according to nytimes.com.

“This is a tougher climate, for sure. Parents need to realize that their kids are in trouble,” economics professor Laurence Kotlikoff said, according to cnbc.com.

To dive deeper into the wages that young people have to deal with, it is important to look at the federal minimum wage, or the wage that the government believes is liveable for everyday life. The current federal minimum wage, which was set in 2009, is $7.25 per hour, or around $1,250 a month. To put this into perspective, the average rent price per month in America is $1,388. If someone, specifically a person in Generation Z, is living off of federal minimum wage with the average rent price, they would be negative $138 every month, as the federal minimum wage does not cover enough of the costs. Even if they were to get a roommate or two, they would still spend at least 33% of their paycheck each month. This only takes account of the rent of an apartment or house, and does not even include food and every day necessities, all of which would add on to monthly expenses, according to investopedia.com.

So, yes, the economy is technically growing from a business standpoint, but it does not apply to a lot of younger people. For many Americans, specifically people who are middle class or lower, including a lot of Generation Z, the current prices in America are unlivable. While some states are making wages higher and trying to regulate prices, it is not enough for many families. Simply put, Generation Z cannot live in America with prices the way that they are currently. The government needs to regulate the supply and demand from consumers to make prices cheaper, as well as try to combat businesses increasing prices on their products.