# West Faces Hopelessness Crisis

> Young people protest high living costs as Western societies lose hope in social contracts.
- Title: West Faces Hopelessness Crisis · Foreign Policy | Shortify
- Summary: Young people protest high living costs as Western societies lose hope in social contracts. Western countries face intergenerational hopelessness as rising…
- Keywords: gen z, youth protests, living costs, social market economy, europe, france, rennes, property ladder, social security, wage growth, tax revenue, intergenerational hopelessness
- Source: Foreign Policy — https://foreignpolicy.com/2026/10/21/gen-z-protests-youth-students-europe-france-milan-living-costs
- Author: Kersti Kaljulaid
- Published: 2026-10-21T00:00:00+00:00
- Read time: 1 min
- Topics: gen z, youth protests, living costs, social market economy, europe, france, rennes, property ladder, social security, wage growth, tax revenue, intergenerational hopelessness
## Hopelessness Crisis
Young people protest high living costs across Europe as Western societies face growing hopelessness.
## Social Contract Erosion
The social market economy that promised dignity and upward mobility is shrinking for ordinary workers.
## Historical Shift
Labor's share of GDP dropped from 70 percent in the 1970s to 50-60 percent in the 2000s.
## Housing Crisis
Younger generations find housing the property ladder increasingly out of reach with mediocre salary prospects.
## Social Support Expansion
Governments expand social support for middle-class workers as wages fall below living costs.
## Downward Spiral
Wage growth suppression leads to lower government revenues and more social support dependency.
## Intergenerational Impact
Two average salaries today rarely match the quality of life of previous generations.
## Macroeconomic Shift
Labor compensation now accounts for less than 50 percent of GDP with higher social spending and double deficits.
## Systemic Failure
People work full time yet cannot make ends meet, feeling the system doesn't work and has no solution.
## Protest Movement
Youth protests against high living costs and systemic failures spread across Europe.
## Proposed Solutions
Governments and businesses must ensure wages cover full labor costs to rebuild social contracts.
## AI and Labor
Artificial intelligence could boost productivity but risks job losses if not managed properly.
## Tax Reform Needed
All income types must be taxed equally to create a fairer modern economic system.
## Downward Spiral Risk
Inaction risks revolutions as hopelessness drives youth to break the failing system.
## Key takeaway

Western countries face intergenerational hopelessness as rising living costs and shrinking social contracts drive youth protests.