Government Red Tape, Not Capitalism, Is Crushing Young Americans' Dreams

Young Americans aren’t storming the barricades to torch capitalism. They’re too busy drowning in student loans and scraping by on stagnant wages. The idea that Millennials and Gen Z reject free markets out of some ideological fever is a lazy caricature. They don’t hate the system; they’ve been priced out of it. Chamath Palihapitiya, a tech investor with a knack for cutting through noise, nailed it on X: Millennials aren’t anti-capitalist because of dogma. They’re anti-capitalist because they can’t afford to participate.

Look at the numbers. Average student debt for those under 30 hovers near $24,000, with Millennials and Gen Z holding over $869 billion in loans. Homeownership, once a cornerstone of the American Dream, is a distant fantasy for many, with 66% of Millennials renting in high-cost states. Wages? They’ve barely budged against inflation, leaving young adults with negative real income growth. This isn’t a generation rebelling against markets. It’s a generation locked out of them.

The backlash against figures like Elon Musk or companies like Tesla isn’t rooted in Marxist textbooks. It’s the frustration of a generation that sees wealth concentrate while their own prospects shrink. They’re not burning effigies of billionaires because they read Das Kapital. They’re angry because the system feels rigged, and they’re not wrong to notice the deck seems stacked.

Yet the solution isn’t to vilify success or demand handouts. The answer lies in unleashing the very system that’s been choked by red tape and bad policy: free enterprise. Millennials don’t need moral lectures or government checks. They need a fair shot at building wealth.

Why are Millennials struggling? Don’t blame capitalism. Blame decades of government meddling that’s inflated costs and stifled opportunity. Take higher education. Federal loan programs, meant to democratize college, have fueled tuition inflation, saddling graduates with debt that outpaces their earning potential. The average cost of a four-year degree has skyrocketed since the 1990s, while the value of that diploma has stagnated. This isn’t a market failure; it’s a government-subsidized disaster.

Housing’s no better. Zoning laws, environmental regulations, and bureaucratic permitting processes have driven up costs, making homeownership unattainable for many. In high-cost states, average mortgage balances near $500,000, while young adults struggle to save for a down payment. The free market didn’t create this mess. Policymakers did, by strangling supply and inflating demand with easy credit.

Then there’s healthcare. Obamacare’s mandates and regulations have driven up premiums, leaving Millennials with less disposable income to save or invest. The gig economy, where many young adults work, offers flexibility but no benefits, thanks to labor laws that favor traditional employment over innovation. Every step of the way, government intervention has raised barriers, not lowered them.

Contrast this with the promise of free markets. Surveys show 70% of Millennials believe competition is good, and 73% support private property rights. They’re not allergic to capitalism; they’re starved for it. Remove the regulatory shackles, and you’ll see entrepreneurship flourish, wages rise, and wealth spread.

Critics love to point fingers at billionaires, claiming their wealth proves capitalism’s broken. Oxfam’s 2024 report whines that 60% of billionaire wealth comes from inheritance or monopolies, as if success is inherently suspect. But this narrative dodges the real issue: wealth creation isn’t a zero-sum game. Elon Musk’s billions didn’t make Millennials poorer. His companies created jobs, disrupted industries, and lowered costs for consumers. The problem isn’t billionaires; it’s a system that makes it harder for everyone else to climb.

Tax-the-rich schemes, like the Billionaire Minimum Income Tax, sound appealing but miss the mark. They punish success while doing little to address root causes like regulatory bloat or education costs. Worse, they fuel a victimhood mentality that tells young adults their struggles are someone else’s fault. Millennials don’t need resentment stoked; they need policies that let them compete.

Historical data backs this up. The Great Recession, which hit Millennials hard, wasn’t caused by too much capitalism but by government-backed mortgage schemes and loose monetary policy. Deregulation and tax cuts under President Trump’s first term led to record-low unemployment and rising wages before the pandemic hit. Free markets work when they’re allowed to.

Millennials deserve better than finger-wagging or empty promises. The path to prosperity lies in unleashing markets, not shackling them. Start with education reform: break the accreditation monopoly, promote trade schools, and incentivize colleges to lower costs. Next, slash housing regulations to boost supply and make homes affordable again. Simplify tax codes and reduce compliance costs to spur entrepreneurship, letting young adults build businesses without drowning in paperwork.

Above all, reject the siren call of redistribution. Policies like universal basic income or wealth taxes don’t empower; they entrench dependency and resentment. Millennials want opportunity, not charity. They want to own assets, not rent their lives. Free markets, guided by competition and innovation, can deliver that.

Chamath’s right: moral lectures won’t fix this. Neither will vilifying success. What will? A system that rewards hard work, cuts barriers, and lets every American, young or old, build their own future.