Generational Divide Deepens as Young Adults Struggle with Soaring Costs and Wealth Disparities

A growing economic chasm is making it increasingly difficult for young people in affluent nations to afford raising children, a challenge attributed by some to skewed wealth distribution and persistent deficit spending. A recent social media post by "More Births" encapsulated this sentiment, stating, "Why do young people say they can't afford kids when they live in the richest countries on Earth? The problem is the distribution. In many countries these days, the old are greatly advantaged over the young, and deficit spending makes things worse."

Raising a child in developed countries represents a significant financial undertaking. In the United States, the cost of raising a child to age 18 can range from an estimated $241,106 for lower-income households to over $513,722 for higher-income families, excluding college expenses, according to U.S. Department of Agriculture figures adjusted for inflation to June 2025. Similarly, in the UK, reports indicate the cost of raising a child to 18 can exceed £200,000. South Korea, facing the world's lowest fertility rate, reports child-rearing costs at 7.79 times its per capita GDP, largely driven by substantial private education expenses.

Economic analyses suggest a widening generational wealth gap, where older generations have significantly benefited from asset price appreciation, particularly in housing and equities, since the 1980s. This has led to a steeper life-cycle wealth profile for recent cohorts, who often start with comparable wealth levels but face higher asset prices, making milestones like homeownership and family formation more challenging. This disparity in wealth accumulation contributes to a sense of financial insecurity among younger demographics.

Furthermore, the impact of government deficit spending is a contentious issue in intergenerational equity debates. Critics argue that continuous deficit financing can shift the burden of debt to future generations, potentially leading to higher taxes, reduced public services, or increased fiscal instability. While some economists suggest that investments funded by debt can benefit future generations if productive, others contend that such spending often disproportionately favors current consumption and older demographics, exacerbating the financial strain on younger cohorts.

The confluence of these factors—high costs of living and child-rearing, an increasingly unequal distribution of wealth, and the long-term implications of national debt—presents a complex challenge for young adults, influencing their decisions regarding family size and contributing to broader demographic shifts observed in many wealthy nations.