Better than their reputation: Why Generations Z and Alpha are optimistic about the future – by Dr Daniel Dettling

Complaints about young people predate even the famous words attributed to Socrates: “The youth of today love luxury, have bad manners and despise authority. They contradict their parents, cross their legs and tyrannise their teachers.” One particularly common criticism made by older generations is that young people lack ambition and a willingness to work hard. Yet there is no empirical evidence to support this claim. Quite the opposite: according to a recent survey, a clear majority of young people in Germany are optimistic about the future, and almost two thirds believe that hard work and effort can help them achieve a better future for themselves.

The promise of social mobility – the idea that hard work and effort should be rewarded – is essential to the functioning of a democratic society in which personal wealth is not simply inherited but can also be earned. According to the survey, almost all young people want to see greater investment in the future: in education, affordable housing, a better balance between work and family life, mobility and a stronger democracy. At the same time, they want lower everyday costs, including taxes and social security contributions, and more affordable home ownership. If hard work comes to be seen as pointless and the dream of owning a home becomes unattainable, we risk losing our future. Older generations now have a responsibility to deliver. What kind of country do they want to leave to the next generation – to their children and grandchildren?

The fundamental issue is creating fair starting opportunities for all young people. In Germany, up to €400 billion is inherited every year, averaging €85,000 per inheritance. The problem is that half of all beneficiaries inherit less than €33,000, while almost 25% goes to the top 10% of income earners. Those who already have wealth are also the most likely to inherit – and to inherit the largest amounts. In eastern Germany, comparatively few people receive an inheritance at all. There is therefore a strong case for introducing a universal basic inheritance: a sum of money provided by the state to every child at birth, which could later be used to fund university studies, vocational training or the establishment of a business. The state could invest €10,000 for every citizen. By the age of 18, assuming an annual return of three to four per cent, that amount could have doubled. This degree of trust in the younger generation should be worth the investment. The return for society would be many times greater.