This article is adapted from a lecture presented at the Mises Student Circle "Why the Economy Is Failing Generation Z" on November 1, 2025, in Grand Rapids, Michigan.

I teach at Ferris State University and most of my students are members of Generation Z. When I ask them what they are stressed about, they often mention passing my course, of course—but beyond that, it seems that they are stressed about dismal economic prospects regarding jobs and housing. In many cases, this concern is understandable. They face serious challenges.

Inflation is hollowing out the middle class and making life more difficult for Gen Z. However, in some cases, the situation is overstated—especially when compared to other historical periods. There are many stories about how easy things were for high school and college graduates 50 or 60 years ago. However, the economic reality then was not always as favorable as it is sometimes portrayed.

One useful economic statistic is the ratio of job openings to unemployment. When job openings are high relative to unemployment, that is a strong labor market. Right now, we are still in that favorable range. Unemployment is relatively low—assuming the official statistics are accurate. Of course, it is possible that inflation and unemployment are understated for political reasons.

Federal Reserve Chair Jerome Powell has acknowledged that while the job market is currently relatively strong, the situation could worsen, which is why he claims interest rate cuts may be necessary to avoid a downturn in the labor market. Of course, those who understand Austrian business cycle theory know that such Federal Reserve actions will exacerbate macroeconomic problems in the long run.