How Neoliberalism Has Failed the Youth

In recent years, the failings of neoliberalism have become increasingly apparent, particularly in its impact on the younger generation. The promises of prosperity, opportunity, and upward mobility that neoliberalism once held are now overshadowed by growing inequality, precarious employment, and diminishing prospects for the youth. This article delves into the ways in which neoliberalism has failed the younger generation, creating suggestions as to how a new political, economic hegemony could replace it.

One of the most talked about and perhaps obvious failures of neoliberalism is the economic instability it has created. The crises of the early 21st century, including the 2008 global financial meltdown, Brexit, COVID-19, and the cost-of-living crisis have had long-lasting effects on the job market and economic stability as well as the real income of the workforce. One of the most glaring issues with neoliberalism is the exacerbation of economic inequality. The deregulation of financial markets and the reduction of taxes on the wealthy have disproportionately benefited the rich, leaving the middle and lower classes struggling. According to data from the World Inequality Database, “the top 10% own nearly ¾ of the world’s wealth, while half the world’s population is almost entirely deprived of wealth” As it stands, young people entering the workforce during and after these periods faced/face high levels of unemployment and underemployment, which have had a knock-on effect on their long-term career prospects and financial stability. This concentration of wealth in the hands of the few has left the many, including the youth, struggling to make ends meet. The 2008 financial crisis highlighted the dangers of unchecked financial markets, and the risks of untamed aggressive capitalism, the likes of which are the building blocks of neoliberalism. Deregulation allowed financial institutions to find loopholes in which to engage in reckless behaviour, such as subprime mortgage lending and excessive leveraging, leading to global economic meltdown. But don’t worry! They said they won’t do that again. So we’re good right? I’m sure banks won’t just find another loophole to exploit, right? Right?

The 2008 crisis resulted in massive job losses, foreclosures, and a prolonged recession, demonstrating the desperation for some kind of state oversight. This has not happened, and there is still growing inequality. This inequality is not just a matter of income disparity but also has knock-on effects. With impact on the access to education, healthcare, and essential services, with news monopolies further entrenching social divides in the hope that those at the bottom of the ladder stay pointing the finger at one another, instead of looking up at the people at the top, throwing bricks at them.

Another example of the failure of neoliberalism is the rise of the gig economy and the decline of stable, long-term employment opportunities that have left many young people in precarious job situations. This shift has been driven by the capitalist pursuit of profit maximisation, often at the expense of workers' rights and job security. “Why hire people on proper contracts and pay that pesky sick pay? Why should we contribute to pensions?” ask the CEO’s. As such, gig work, characterised by short-term contracts and lack of benefits, has become a common reality for many young people, making it difficult for them to plan for the future or achieve financial independence. Neoliberalism once promised upward mobility for those who worked hard and played by the rules, however now it seems, young people are realising that playing by the rules only gets you lumped with more work. The cost of higher education has skyrocketed, leading to massive student debt burdens for many young people. This debt, combined with stagnant wages and high living costs, has made it difficult for the youth to achieve the same level of economic success as previous generations.

The capitalist system has also led to widespread political disillusionment among the youth. Many young people perceive political activity as a game played by elites for their own benefit, with little regard for the needs and aspirations of the broader population. When Blair moved to the centre in 1997, a huge swathe of the working classes were left unrepresented (hopefully no populists come in and try to claim they are ‘one of them’, and lead them into believing far-right conspiracies). This disillusionment is compounded by the lack of viable alternatives to the capitalist system, leaving many feeling trapped in the constant cycle of exploitation and disenfranchisement. Hence why this shift to a postneoliberal paradigm could be effective. This postneoliberal political structure could reorganise priorities within the political system. If there was a shift, it could focus on issues that the current neoliberal structure has failed on. One does not need to produce a manifesto here, but this examination of the failures of the neoliberal hegemony can lead to the development of real key foundations.

An inversion of the ‘trickle-down economics’ model, that sees wealth stay in the hands of the 1%, there can be real investment in the working classes, with a postneoliberal system prioritising inclusive economic growth. This could involve introducing rent caps for residents and small businesses, councils buying back privately owned buildings, increasing tax on mega-chains. This postneoliberal hegemonic political bloc could aim to prioritise actual job creation, and not just for those who have attended University. This could include the development of green energy factories, genuine apprenticeships, training people in newer technology, and restructuring public services to be free at the point of use, and to be easily accessible, as well as entrepreneurship support, increasing support for small businesses and startups through grants, low-interest loans, and mentorship programs to encourage young entrepreneurs to innovate and contribute to the economy.

Strong public institutions should be a cornerstone of a postneoliberal system, with abolished tuition fees and proper investment in public education, the provision of scholarships, making higher education more accessible to all, regardless of socioeconomic background. Further, there should be a focus on the climate, and the decimation of the environment, with a postneoliberal system system emphasising sustainable development, which can in turn create green jobs and a green economy, creating new job opportunities in renewable energy, conservation, and sustainable agriculture, as well as better quality of living, with healthier living environments with less pollution and the promotion of sustainable urban planning, leading to healthier living conditions, benefitting the physical and mental health of everybody.

The Need for a New Vision

The current trajectory of neoliberalism is unlikely to change without a positive vision of how society and the economy might develop in the future. There needs to exist a revised agenda, that is focused on social equality, closing the wealth gap, the empowerment of women and the full development of human capacity, with the emphasis on the importance of education and the creation of opportunities for all individuals to achieve their potential. The failures of neoliberalism are evident in the economic instability, inequality, precarious employment, and political disillusionment faced by today's youth. To address these issues, it is key to explore alternative political and economic models that prioritise social equality and allow for genuine human development. By reimagining the approach to education, employment, and democratic participation, we can create a more just and equitable society for future generations, as well as a planet that isn’t simultaneously flooding and on fire. The neoliberal model has proven to be inadequate in addressing the challenges of the modern world. But that is not what the neoliberal model is for. The neoliberal model is working perfectly fine, as it exists to keep the rich rich and the poorest hungry, pointing fingers at each-other. A postneoliberal system that prioritises inclusive economic growth, financial regulation, strong public institutions, and sustainable development is essential for creating a more equitable and resilient global economy. By learning from the failures of neoliberalism, we can build a future that benefits all members of society, and not just those with the money to buy newspapers and social media sites. The transition to a postneoliberal system offers numerous benefits for young people, including increased economic opportunities, better access to education and healthcare, and a more sustainable environment. Additionally, one could argue (thought perhaps not in a conclusion!) that promoting transparency, accountability, inclusive policies, and civic engagement, a postneoliberal system can restore confidence in the political system. By addressing the specific needs and concerns of the younger generation, we can build a more equitable, resilient, and better politics for the many, not the few.