The US economy continues to show no signs of stopping housing prices hit all time highs.

The S&P 500 hits at all time high, and the combined net worth of all Americans crossed $150 trillion.

But while the US has been booming for decades, one group has been left behind young people, older Americans saw their share of wealth increased by 12% since 1989.

While those under 40 saw a decline of nearly 50%.

And now for the first time in 200 years, 30 year olds are poorer than their parents, the social contract that is now no longer in place.

And for the first time in the US history, a 30 year old is no longer doing as well as their his or her parents were what went wrong.

This is America, the broken generation, the United States, the land of opportunity.

From the beginning, America was different.

Unlike the rest of the world, it didn't matter who you were or where you came from.

Everyone had a shot at the American dream.

However, the reality on the ground today is bleak, and the dream is more like a nightmare.

In 1985, the average home was four and a half times the median household income.

Today, this number has ballooned by 50% to seven times.

In a matter of 40 years, life has become two times as expensive.

One of the main drivers for this affordability crisis is underdevelopment.

It's called NIMBY, not in my backyard.

City planners say the attitude is spreading and causing widespread social disruption.

Across many major US cities, landowners have fought against new developments to preserve their quality of life and to ensure their property values stay high.

Specifically, housing starts as a proportion of the US population have dropped by 30% compared to before 2000.

This means that as the population continues to grow, the number of homes per person is declining, driving up real estate prices.

This reduced housing development has compounded over the years and has created a major shortage of housing.

Take a look at San Francisco.

In 2024, the city only approved 16 housing permits, and seven of those were for single family homes.

This is a city of a million people, and the surrounding metro area has 7 million people, and all they approved was 16 housing permits.

At the same time, the share of homes owned by older generations has grown significantly compared to the past.

The proportion of homes owned by Americans over 55 has increased by 23%.

While homeownership among those under 55 fell 19%.

Older generations have gobbled up real estate like candy, and they've created a system that benefits them meaningfully.

Lower taxes on capital gains, the ability to forego taxes through a 1031 exchange, and much, much more.

These homeowners are staying in their homes longer than ever. 54% of them own their homes outright.

The rest have locked in historically low interest rates.

And to make matters worse, key locks allow these homeowners to tap into their home equity without having to sell.

The result, they have no incentive to sell.

This in addition to low development has kept the housing market artificially tight.

Empty nesters are living in large homes that are mostly unused, while young people struggle to get by.

Concurrently, a new player has entered the housing market, private equity.

When I was in business school, there was nothing sexier in this entire world than private equity.

It's exactly where you went if you wanted to one day own an island.

And one of my classmates just bought an island.

Private equity currently owns 240,000 single family homes in the United States.

Now, this is only 5% of the overall single family home rental market, which is small, but the ownership is concentrated in the Sunbelt.

And this doesn't include ownership in apartments, which have a much, much higher corporate and private equity ownership rate.

Analysts have shown that select Sunbelt markets have over 50% ownership by private investment firms.

By concentrating their ownership in key markets, they're able to drive down property management and service costs while having an outsized role in dictating market rents.

For example, between 2020 and 2023, rents for a two bedroom detached home rose by about 44% in Tampa, 43% in Phoenix and 35% in Atlanta.

Compare this to the national average of 24%.

The average homebuyer can't compete against private equity.

These firms are able to buy large swaths of home in one go and make unconditional offers with cash.

Furthermore, unlike mom and pop landlords, corporate landlords are highly sophisticated and will do everything to generate additional yield, even breaking the law.

Recently, the Attorney General of Washington DC filed a case against 14 corporate landlords for price fixing through the analytics company, RealPage.

RealPage helped landlords optimize rents across four and a half million units in the United States.

And here's the shocker, RealPage is owned by private equity firm, Tama Bravo.

By taking data from millions of units, RealPage is able to optimize pricing.

And as you can see, the value of data to these corporations is in the billions.

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And now back to the video.

The endgame for corporate ownership of homes is very obvious to own as many homes as humanly possible, and to create forever renters out of would be homebuyers.

And it seems like they're well on their way of achieving their goal.

It's projected that private equity will own 40% of us single family home rentals by 2030, eight times their current ownership.

This will likely increase the rent paid by renters, making it more challenging for them to save up and buy a home while at the same time reducing the housing stock available to be bought driving up prices further.

Historically, housing has been a big wealth store.

But with limited supply created by older generations and increasing competition for private equity, wealth is declining among younger generations.

Since 1989, wealth held by those under 40 has declined by nearly 50%.

While wealth held by boomers has increased.

There are a few common explanations older generations get for this.

The first is that young people don't work hard enough, or they're And this is somewhat true.

In 1985, the average workweek was 35 hours.

Today, it's around 34 hours, making us 3% lazier.

Now you don't need a PhD to see that this is not the issue.

The second point raised is that young people spend money unnecessarily.

And although young people spend more money on experiences and technology, they actually spend less on physical goods, balancing out most increases in spending.

The primary contributor to higher spending with young people is the increased relative value of housing, healthcare and education.

In fact, if you remove housing from the equation, younger generations spend less on average.

And contrary to popular belief, Gen Z and millennials are saving more of their earnings than older generations.

Lastly, people will claim that young people are unskilled and need more education.

But this is absolutely unfair.

Every subsequent generation has become more educated than the last.

And Gen Z will continue this trend and become even more educated than millennials.

This though, is expected because society has pushed down the narrative that college is necessary to progress in life.

This would be fine and dandy if there was a value to education.

But sadly, college is more expensive and less beneficial than ever.

In 1980, the cost of attending a four year college program when adjusted for inflation was $10,000.

Today, it's nearly $29,000.

That's a 3x increase.

But why?

One simple word, bloat.

From 1976 to 2018, US college enrollment grew by 78%.

But at the same time, full time faculty grew by 92%.

Okay, that doesn't seem too bad.

But administration?

Administration grew by 164%.

And other non-administrative professionals, 452%.

That means that the professional staff at universities has far outpaced the growth of students.

Colleges are spending more and more money on things other than education, more admin staff, more consultants, more fancy buildings, more of anything but To make matters worse, even if you get an education, it doesn't really solve anything.

In 1980, households with a four year college education earned $100,000 per year.

Today, they earn $118,000 per year.

This is a real increase of 18%, which seems good on the surface.

However, during the same period of time, the cost of a four year education has increased from $40,000 to $115,000.

A real increase of 188%.

So here's the marketing pitch for college.

You can increase your earnings by 18% by spending 190% more than previous.

Unlike in the past, call it is no longer a path to economic prosperity.

Instead, young people are forced into a perpetual education and credential machine.

What once required a bachelor's degree and entry level experience now requires a master's degree and 300 years of experience.

The cherry on top, it will cost you everything.

Given how expensive education is, most students have to take out large student loans.

Currently, the total balance of student debt in the United States is $1.7 trillion.

This number has grown two times faster than wages over the last 20 years.

But this isn't limited to student loans.

With rising living costs and stagnating wages, the only way to make ends meet for young people is accumulating more and more debt.

Since 2013, credit card debt has increased 26% auto debt 14% and mortgage debt 44%.

This increase is happening while young people are earning 13% less than they did in 2013.

But this isn't the only debt that young people need to worry about.

While personal consumer debt has been rising and young people are more indebted than ever, the United States of America has gone on a debt binge unlike anything the world has ever seen.

Fiscal responsibility has become a forgotten concept in the United States.

Since the removal of the gold standard, politicians have discovered that there is no consequence to printing endless amounts of money.

And over the last 60 years, government debt has grown three times faster than GDP, and now sits at $35 trillion versus GDP of $27 trillion.

The only time debt was this high in US history was World War Two, the bloodiest, most destructive conflict in human history.

This debt is obviously not free and has associated interest costs.

Currently, the US is spending 16% of their annual budget on interest or $624 billion.

That's enough money to pay off all student debt in three years.

Sadly, there's literally no mechanism to stop the government from spending money it does not have.

Elected officials are not acquired to balance budgets.

They cannot be fired for overspending.

They aren't measured on returns on invested capital.

All they need to do is spend the money and campaign for votes.

Now $35 trillion sounds like a lot of money, and it is.

But what if I told you that the real debt number is much, much higher?

Let me break it down.

National debt is $34.6 trillion.

State level debt adds $1.9 trillion to the mix.

Unfunded OPEB liabilities are another $1 trillion.

Unfunded pension liabilities, $7 trillion.

And the biggest, baddest of them all, Social Security and Medicare contribute to a whopping $80 trillion of additional liabilities.

Therefore, the total actual debt held by the United States government stands at a staggering $123,875,533,000,000.

That is five times greater than the US GDP, or put another way, $370,000 per American.

But in reality, if you're over 50, you probably won't have to worry about this debt.

Most of this debt won't impact you.

The lives of older generations will be fine.

Instead, this spending will benefit old people and levy a tax on the future of young people.

So if we exclude those over 50, the tax amounts to over $600,000 a person.

To make matters worse, the high cost of living is leading young people to have fewer children.

Without a sharp increase in immigration, this will likely reduce production and worsen the debt burden.

But why and how would the government spend so much money knowing it's nearly impossible to ever pay it back?

Do they not care about young people and their future?

The short answer, they don't.

The founding fathers of the United States are often revered as godlike figures.