Worldwide, 57% Expect The Next Generation To Be Worse Off Financially - What Drives This Economic Pessimism?

Economic pessimism is growing worldwide, particularly when it comes to younger generations. A 2024 Pew Research Center survey reports that 57% of adults in the countries surveyed believe that children today will be financially worse off than their parents. 

This belief is much more prevalent in higher-income countries like the United States, Canada, France, and the United Kingdom. In each of these countries, at least 75% believe children will be more financially burdened. But what drives this uncertainty about the future? 

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A major factor that influences this concern is a widening wealth gap. With economic inequality at an all-time high, people in many countries see the gap between the rich and the poor as a big problem. The rising cost of housing, stagnant wages, and pressures from inflation make it difficult for younger generations to build wealth in a similar way to their parents. 

The COVID-19 pandemic also played its part in disrupting the economy. Its effects linger worldwide and continue to shape public opinion in regard to economic concerns. In 15 of the 31 countries surveyed, more people believe children will be worse off than they did before the pandemic. 

For example, Germany saw a 19-percentage-point increase in pessimism between 2019 and 2024. The pandemic took its toll on job security, inflation, and government debt, leaving many feeling uncertain about long-term economic stability. 

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The research shows that people who are not satisfied with their country's current economic circumstances and the functioning of democracy are more likely to express pessimism about the next generation's future. In Hungary, for instance, 57% of those who don't support their governing party believe children will be worse off, compared with those who do support, of whom only 20% believe children will be worse off. Several countries had similar trends, with political divisions and economic policies contributing to varying views of the future. 

Not all countries believe their children will be worse off, though. Countries in South and Southeast Asia, including Bangladesh, India, Indonesia, and the Philippines, saw greater optimism about the financial future of children. In these countries, rapid economic growth, expanding middle classes, and technological advancements may contribute to a more positive outlook.

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Latin America is a little more mixed in its views. Argentina and Brazil see a roughly even split in opinions, while nations like Colombia and Peru lean toward the more pessimistic view. Meanwhile, in sub-Saharan Africa, about two-thirds of respondents in Kenya and South Africa expect children to be financially worse off.

Economic pessimism is widespread, but it is not universal. The people in several countries are more optimistic about the future finances of their children. Many factors come into play, though. Economic policy, advancements in technology, wealth distribution, and global market shifts all play a role in how the next generation's finances will be impacted. 

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