University of Michigan economist Justin Wolfers declared Generation Z ready to outpace all prior generations in wealth accumulation during a recent discussion on MS NOW. The bold forecast challenges widespread pessimism about young Americans facing sky-high housing costs, economic turbulence and artificial intelligence upheaval.

Wolfers dismissed narratives of doom for those born after 1997. ‘Gen Z will be the richest generation and Gen Z in the United States will be the richest generation in the richest country in the history of the world,’ he said. Commentator Kyla Scanlon, who joined him on the program, agreed the old economic playbook no longer applies.

Traditional milestones—college graduation, steady career, home purchase, marriage, kids—have fractured, Scanlon noted. ‘The ladder is definitely disrupted,’ she said. Young people respond by channeling money into stocks and speculative investments rather than houses, a pattern she termed ‘aspirational displacement.’

Housing drives much of the angst. Older generations built fortunes by holding property through relentless price surges. ‘There’s a generation who grew up and got rich the old-fashioned way, which is to say sat around, did nothing, and watched their house price double,’ Wolfers remarked. He pinned the affordability crisis not on building materials but on land scarcity fueled by zoning laws and regulations.

‘Bricks are not expensive,’ Wolfers added. ‘Young people can afford bricks. What they can’t afford is the dirt on which you’d put those bricks.’

Data offers glimmers of progress. Homeownership rates for 24-year-old Gen Z members now edge out those of Millennials and Generation X at the same age, according to figures cited in the discussion. Scanlon pointed out that family help often powers these purchases amid a massive intergenerational wealth shift from baby boomers.

Artificial intelligence looms as the next battleground. Wolfers highlighted its potential to supercharge productivity and generate unprecedented riches. Yet he questioned the split: ‘Will it go to just a couple of people, the AI entrepreneurs who end up owning everything? Or are we going to invent ways in which this major technology can actually lift us all up and we all get a useful slice of the pie?’

Scanlon echoed concerns over concentrated gains favoring founders and big investors. The discussion underscored how Gen Z handles a transformed landscape, with delayed life markers and novel paths to affluence like tech equities over real estate.

Policy choices, regulatory tweaks and innovation will shape outcomes, the pair agreed. Wolfers rejected straight-line decline stories. Gen Z enters a higher-productivity economy than predecessors, even if entry hurdles feel steeper.

Broad prosperity hinges on distributing AI-driven gains, not just creating them. Whether through taxes, antitrust measures or democratized access to tools, the choices ahead will decide if Wolfers’ richest-generation vision materializes for most or a select few.