The Broken Contract: Why Are We Here?

The contract is broken. All our lives, we're told that through hard work, perseverance, and a little natural talent, we'll succeed. Despite this, an elite few hold mountains of wealth, and basic needs are going unmet for most hardworking Americans. We are about to figure out if this country has the constitution (pun intended) to do what needs to be done next.

This post will discuss the issues we are currently facing, objectively analyzing why inequity is leading to poor outcomes for the majority of Americans. It will argue that the inequitable frameworks in place are inherently anti-American.

The Broken Contract

Despite adhering to societal expectations—pursuing higher education, engaging in the workforce, and striving for upward mobility—many find themselves burdened by student debt, stagnant wages, and an escalating cost of living. Promises of stable employment, affordable healthcare, secure retirement, and environmental stewardship appear unfulfilled. The federal minimum wage hasn't been raised in decades. Meanwhile, CEO pay has increased exponentially.

Simultaneously, the looming threat of climate change, exacerbated by inadequate policy responses, has intensified feelings of intergenerational inequity. This erosion of trust has led many to question the value of traditional life paths. Die With Zero tendencies by those with wealth prioritize multiple homes, extravagant private travel, and concierge medical care, while poor people die through a lack of access to basic needs.

Is it any surprise that people are desperate? We're fine working hard, but implied in our agreement to work hard was the idea that we would at the very least have access to things that we deserve. Healthcare, education, good roads, safe food, and responsible corporations. Instead, we maximize profit at the expense of everything else.

In response, there's a growing call from people of all ages for systemic reforms that address these disparities and restore faith in the institutions meant to serve them.​

Wealth Inequality Themes

Generational Wealth Gap

​It's always been true that older generations have more wealth, but there are important factors that make this gap more challenging.

First, there are the stagnant wages and escalating costs in essential sectors. From 2010 to 2022, home prices surged by 74%, with wages only going up 54% (1). Healthcare expenses have also strained workers' finances; in 1980, healthcare premiums consumed 8% of take-home pay, but by 2020, this figure had tripled to 25% (2). The costs of basic goods and services are threatened by the dual prong of corporate greed and politically "inspired" tariffs.

This economic strain is further compounded by a significant intra- and inter-generational wealth gap, which is starkly different from the time before the tech broligarchy. While the millennial generation has nearly the same amount of wealth, and has exceeded previous generations by some measures, it is firmly held by a handful of young, tech billionaires. Within Millennial wealth specifically, 70% is held by the top 10% of earners (4). This means that 90% of people under 40 have less combined wealth than any generation before them.

In terms of the older generation, as of the fourth quarter of 2024, Americans aged 55 and older held approximately $114 trillion in assets. This accounts for nearly 70% of the nation's total household wealth of $166 trillion. 70% compares to only 51% three decades prior, showing how fast the transition has happened. In contrast, households under 40 years old possessed less than $15 trillion, representing just 9% of total wealth, a decline from 14% in the early 1990s (3).

Addressing this would require more progressive policies around earning and wealth treatment, as well as a psychological shift in how Americans view wealth.

​Debt as a Life Sentence

For many young Americans, debt has transformed from a temporary financial tool into a lifelong burden that profoundly influences their mental health, career choices, and personal lives. Student loan debt, in particular, has emerged as a significant source of psychological distress. A study by The Education Trust revealed that 64% of borrowers reported that student debt had negatively impacted their mental health, leading to increased levels of stress, anxiety, and depression. This financial strain often forces individuals to make career decisions based on debt repayment needs rather than personal aspirations, with many opting for higher-paying jobs over passion-driven careers (5).

Medical debt further exacerbates this crisis, disproportionately affecting younger generations who often lack robust financial safety nets. Data indicates that 30% of millennials and 22% of Gen Zers carry medical debt, leading to difficult choices such as skipping rent or mortgage payments (6). The psychological toll is significant, with 32% of individuals with medical debt reporting increased depression and anxiety. This debt burden also compels many to delay or forgo essential medical care, further jeopardizing their health and well-being (7).​

The pervasive nature of debt influences critical life decisions beyond finances. Surveys have shown that student loan debt leads many to postpone or abandon plans for marriage, starting a family, or purchasing a home. This sense of being trapped by debt fosters a pervasive feeling of hopelessness, as individuals grapple with the reality that, despite their efforts and adherence to societal expectations, the promised rewards of financial stability and personal fulfillment remain elusive.​

Addressing this requires completely reshaping the leveraged US economy and removing some of the underlying lynchpins to equity.

The Employment Requirement

A substantial number of millennials and Gen Z individuals are now engaged in freelance or gig work, often without access to essential benefits such as health insurance, paid leave, or retirement plans. This shift has resulted in precarious employment conditions, with many workers experiencing inconsistent income and limited opportunities for upward mobility. Moreover, the federal minimum wage has remained at $7.25 per hour since 2009, failing to keep pace with inflation and the rising cost of living, thereby exacerbating financial insecurity among low-wage workers.

In the United States, where healthcare is predominantly tied to employment, gig workers frequently find themselves without affordable health coverage, further highlighting the vulnerabilities associated with non-traditional work arrangements. This evolving labor landscape underscores the need for policy interventions that address the challenges faced by gig economy workers and promote equitable access to employment benefits and protections (8).​

Addressing this requires detaching critical services like healthcare and child services from employment.

Social Inequality Themes

​Systemic Barriers to Mobility

Systemic barriers to upward mobility in the United States are deeply entrenched, manifesting through disparities in education, persistent discrimination, and policies that favor those with existing capital.

Public school funding, largely derived from local property taxes, results in significant inequities; affluent districts can allocate substantial resources to schools, while poorer areas struggle with underfunding, leading to disparities in educational quality and opportunities (9). Moving towards private and charter schools aims to double down on this.

Racial, gender, and class discrimination further limit access to opportunities. For instance, women earn approximately 71 cents for every dollar earned by men with the same education level, and Black and LatinX workers often earn less than their white counterparts, even when controlling for education and experience (10). Moreover, many economic policies and systems are structured in ways that require individuals to have existing capital to participate fully, such as access to quality healthcare, higher education, and homeownership, thereby perpetuating cycles of poverty.

Addressing these systemic barriers necessitates comprehensive policy reforms aimed at equitable funding for education, enforcement of anti-discrimination laws, and restructuring economic systems to provide equal opportunities for all.​

Mental Health Crisis Linked to Inequality

Like the drug crisis and the pharma-induced opioid crisis that came before it, the mental health crisis is an intentional feature of inequality. In fact, in 2022, approximately 59.3 million U.S. adults—23.1% of the population—experienced a mental illness, with the highest prevalence among young adults aged 18–25 at 36.2% (11). This was even more apparent for those in near the poverty line. Research indicates that individuals in lower socioeconomic brackets face a higher risk of developing mental health disorders, such as depression and anxiety, compared to those with higher income levels (12).

As if this isn't enough, we start young. Children from the lowest income quintile are 4.5 times more likely to experience severe mental health problems than those from the highest income quintile (13). This follows them into adulthood. Despite the increasing need, over half (54.7%) of adults with a mental illness do not receive treatment, totaling over 28 million individuals (14).

These disparities underscore the profound impact of economic inequality on mental health outcomes and access to care.​ Addressing this requires reassessing how we treat mental health and what our motives are behind that treatment.

Climate Crisis + Economic Anxiety

​The "reduce, reuse, recycle" generation finds itself inheriting a climate crisis it did little to cause, yet bears the responsibility of fixing. A global survey published in The Lancet Planetary Health revealed that 59% of individuals aged 16–25 are very or extremely worried about climate change, with over 45% reporting that these concerns negatively affect their daily lives (15).

In the United States the worry is more significant, with 85% of young adults expressing at least moderate concern about climate change, and 42.8% reporting that it impacts their mental health (16). This pervasive climate anxiety is intentionally compounded by economic uncertainty, as younger generations grapple with the fear that political institutions prioritize profit over meaningful climate action. A study involving 130,000 participants across 125 countries found that 89% support stronger governmental efforts to combat climate change. However, many individuals underestimate the prevalence of this concern, leading to a "spiral of silence" that hampers collective action (17).

This misperception fosters feelings of helplessness and inaction, allowing existing power structures to maintain the status quo. As climatologist Friederike Otto notes, the climate crisis is deeply intertwined with global inequality, where the wealthiest benefit from fossil fuel consumption while marginalized groups suffer the consequences (18).

Addressing this intertwined crisis requires acknowledging the disproportionate burdens borne by younger generations and further acknowledging the inherent distrust of institutions that is now firmly wired into these generations.

Institutional Distrust Themes

Disillusionment with Governing Institutions

​Disillusionment with governing institutions in the United States has deepened as systemic inequalities persist and powerful interests increasingly dominate policymaking. Despite bipartisan rhetoric on addressing inequality, meaningful reforms remain elusive, leading many to believe that political systems prioritize corporate agendas over public welfare. This sentiment is reinforced by the substantial influence of corporate lobbying; in 2024, lobbying expenditures reached an all-time high of $4.4 billion, reflecting the significant sway of wealthy interests in shaping legislation (19).

Simultaneously, some tax-exempt megachurches have come under scrutiny for lavish spending on luxury items like private jets and multimillion-dollar homes, raising questions about their contributions to addressing poverty and community needs (20). Such disparities contribute to a pervasive belief that "nothing ever changes," fostering political apathy and eroding trust in institutions.

Addressing this crisis of confidence requires comprehensive reforms that enhance transparency, accountability, and equitable representation within governing institutions.​

Corporate Power & the Price of Life

​Corporate power has increasingly overshadowed democratic influence in the United States, as profit-driven motives dominate policy decisions, often at the expense of public welfare. In 2024, corporate profits reached a record $3.14 trillion, underscoring the prioritization of shareholder gains over equitable economic policies (21).

The healthcare sector exemplifies this trend; since the Affordable Care Act's enactment, the top five U.S. health insurers have amassed over $371 billion in profits, with UnitedHealth Group alone accounting for more than 40% of that sum (22). Concurrently, these companies have faced criticism for practices such as denying nearly one in three medical claims, highlighting a disconnect between profit motives and patient care

Addressing this requires taking meaningful steps to remove certain profit incentives from life-dependent industries, reducing the influence of money in politics, and making American lives sacred again.

What Happens Next?

Addressing the deeply entrenched issues of wealth inequality, social inequity, and institutional distrust will undoubtedly be challenging. While each section attempts to provide short guidance on how to address these issues, these systemic problems are interwoven within the very fabric of our economic and political structures, requiring comprehensive reforms that might take generations to fully realize.

Despite the magnitude of this task, there remains room for optimism. Emerging grassroots movements, increasing public awareness, and active participation from younger generations in advocacy and policymaking demonstrate a resilient determination to reshape our society. By continuing to question, mobilize, and innovate, there is genuine potential for creating a more equitable and hopeful future.

-yeenon