Gen Z’s “Debt Slavery” and the Risk of Political Revolution

Executive Summary

Charlie Kirk, alongside the platform Trump 2.0, delves into the pressing issue faced by Generation Z, which they describe as “debt slavery.”

This term refers to the overwhelming burden of student loans and other financial obligations that many young adults feel trapped under.

They emphasize how this staggering debt not only impacts individual lives but also has the potential to ignite significant political unrest.

The conversation highlights not just the financial plight of Gen Z but also their growing disillusionment with the political system, suggesting that if these issues remain unaddressed, it could lead to a seismic shift in the political landscape.

The discussion acts as a clarion call for awareness and action, urging listeners to understand the implications of economic pressures on the younger generation and the possible ramifications for society as a whole.

Foreword

The Economic Crisis Driving Political Radicalization

In a recent July 2025 interview on Tucker Carlson's program, Charlie Kirk, founder of Turning Point USA, discussed the economic challenges confronting Generation Z and their potential implications for political radicalization.

Kirk posits that the pervasive "debt slavery" affecting young Americans cannot be overlooked, as it may catalyze significant political movements across the ideological spectrum.

Kirk’s thesis centers on the assertion that Generation Z is grappling with economic adversities that are markedly different from those faced by preceding generations.

For instance, the average age of first-time homebuyers has surged to an unprecedented 38 years in 2024, compared to just 29 years in the 1980s, indicating a substantial delay in achieving a fundamental aspect of the American Dream.

The Buy Now, Pay Later Crisis

Kirk identifies the rapid proliferation of Buy Now, Pay Later (BNPL) services as a critical factor contributing to the financial entrapment of Gen Z consumers. Current surveys reveal that 60% of Generation Z engages with BNPL services monthly, with leading providers including Klarna (Sweden), Affirm, and Afterpay (Australia).

The BNPL market is projected to achieve a valuation of $560.1 billion globally by 2025, with an anticipated annual growth rate of 13.7%. In the United States alone, this market is expected to reach $122.26 billion in the same timeframe.

These services allow young consumers to finance a variety of purchases, from concert tickets to groceries, often allowing for the division of even basic expenses into manageable payments.

Alarmingly, BNPL users predominantly rely on these services to fulfill essential needs rather than to finance discretionary spending, highlighting a trend that financial experts describe as predatory lending directed at vulnerable young adults.

The Housing Affordability Crisis

The housing market exemplifies generational economic inequality starkly. As of 2024, first-time homebuyers constituted only 24% of the market, a decrease from 32% in 2023—marking the lowest proportion recorded since the National Association of Realtors began tracking this figure in 1981.

Despite these difficulties, Gen Z has achieved a homeownership rate of 27.8% by age 24, surpassing millennials at 24.5% and Generation X at 23.5% at the same age.

However, this accomplishment is often facilitated by significant familial financial support, with approximately 25% of Gen Z homeowners relying on parental assistance and 22% collaborating with siblings.

The median home price has escalated by 52% since 2020, while rent has surged by 40%, vastly outpacing wage growth.

This disconnect has culminated in what housing experts describe as the worst affordability crisis in recent decades.

The Debt Burden Reality

Kirk's assessment of Generation Z as "the most indebted generation in history" is substantiated by comprehensive data.

While 30% of Gen Z reports being debt-free, 37% carry debts ranging from $5,000 to over $20,000, with the average Gen Z student borrower holding $22,948 in loan debt—growing at a compound annual growth rate of 6.72%, the highest among all generations.

Additionally, credit card balances for Gen Z and millennials have risen by over 50% since March 2022, coinciding with the Federal Reserve's interest rate hikes.

Furthermore, 42% of adult Gen Z individuals continue to reside with their parents, compared to 38% of millennials at the same age.

Political Radicalization as an Economic Distress Signal

Kirk interprets political movements, such as the rise of democratic socialist Zohran Mamdani in New York City, as manifestations of economic distress among young people.

Mamdani, a 33-year-old self-identified democratic socialist, captured the Democratic primary for NYC mayor with a platform advocating for rent stabilization, government-operated grocery stores, and a $30 minimum wage by 2030.

Kirk also argues that the success of Donald Trump among young voters in 2024 reflects similar distress signals, indicating a preference for candidates addressing economic anxieties—an outcome Kirk describes as "incomprehensible" given the historical challenges faced by Republicans in mobilizing young voter support.

The “Credit-Centric Renter Economy”

Kirk characterizes the prevailing economic paradigm as a "credit-centric renter economy," where an entire generation is deprived of the means to accumulate wealth through conventional asset ownership.

This dynamic engenders a psychological disconnection from the capitalist framework: "When you do not own something, why would you defend it?"

The BNPL model signifies a shift from the traditional "work now, pay later" paradigm to a newer "enjoy now, pay later" approach, with these services largely unregulated by established credit bureaus and necessitating no credit checks, thus appealing to young individuals with limited credit histories.

Economic Nihilism and Alternative Strategies

Economic pressures have engendered what Kirk terms "economic nihilism" among youth, who perceive a diminished capacity for traditional wealth creation.

Notably, Gen Z is 78% more likely than millennials to contemplate co-buying homes with friends or family (32% vs. 18%) and demonstrates a greater willingness to rent out portions of their residences or relocate to lower-cost regions.

The Impact of Trump 2.0 on Gen Z

An Examination of Debt Enslavement and Political Dynamics

The emergence of Trump 2.0 has amplified Generation Z's perception of "debt slavery," thus raising concerns about potential political upheaval within this demographic.

This analysis delves into the implications of recent policy shifts, economic pressures, and rising political dissent among Gen Z.

Reforms in Student Loan Policy and Associated Debt Challenges

In July 2025, the Trump administration enacted a comprehensive tax and spending initiative colloquially dubbed the “One Big Beautiful Bill,” which brought about profound alterations to federal student loan frameworks.

Notably, this bill terminated numerous existing repayment plans, including the Biden Administration's SAVE Plan—designed to cap payments based on income while facilitating expedited forgiveness options.

Post-implementation in July 2026, only two repayment structures are available for new borrowers: a rigid standard payment plan and a less favorable income-based plan characterized by higher minimum payments and elongated repayment durations.

These modifications introduced stricter borrowing limits and discontinued widely employed options such as the Grad PLUS loan program, disproportionately hampering low-income borrowers—particularly within Gen Z—from accessing higher education and managing their debt effectively.

For borrowers currently in default, the bill reinstates aggressive collection practices, including wage garnishments and tax refund seizures, while access to forgiveness programs is severely limited or suspended.

Recent survey data from 2025 indicates that Gen Z borrowers are now shouldering average monthly student loan payments of $526—the highest among all age cohorts—with over 50% indicating that their debt inhibits saving, investing, or achieving significant life milestones such as homeownership.

Evolving Economic Pressures and the Concept of “Debt Slavery

Equity data show that Gen Z consistently expresses deteriorating financial prospects compared to preceding generations.

Their primary concerns include elevated unemployment rates, overwhelming student debt, inability to manage emergency costs, and rampant inflation.

In a troubling 2024-2025 survey, 78% of Black, 81% of Latinx, and over 50% of Asian and white Gen Z respondents reported anxiety surrounding their ability to handle an unexpected expense of $400.

This economic strain has resulted in prolonged cohabitation with parents, delays in family formation, and reliance on multiple side jobs to remain financially viable.

A significant portion of this generation attributes their economic insecurity to Trump-era policies, which have been criticized for tariffs, diminishing funding for academia and research, a tightening job market, and inflated living costs.

Rising Political Polarization and Revolutionary Discourse

The concept of “debt slavery,” popularized by public figures like Elon Musk in relation to Trump's expansive fiscal measures, is not merely an expression of anxiety but has evolved into a rallying point for dissent.

Influential commentators warn that neglecting the severe debt burdens faced by youth may incite large-scale protests and the potential for revolutionary movements.

Evidence suggests a marked increase in political polarization within Gen Z, along with feelings of disenfranchisement and a call for transformative changes to the economic and political landscape.

Compared to previous cohorts, discontent with democratic institutions and government efficacy has surged, primarily driven by economic exclusion, persistent debt, and the erosion of social safety nets.

International Context and Implications

Internationally, similar trends are observable; for instance, in Kenya, youth-led protests against taxation and austerity measures have escalated into violent confrontations, raising concerns about the prospects of a similar political crisis in the U.S. should the grievances of its youth remain unaddressed.

Conclusion

Neglecting Generation Z's escalating debt crisis poses a risk of radicalizing young American voters toward extremist political factions.

Charlie Kirk highlights that predatory lending practices and housing market barriers catalyze sentiments of revolt, while proposals like universal "Trump Accounts" aim to facilitate wealth redistribution and re-engage Gen Z, steering them away from socialistic ideologies.

Economic Landscape and Debt Profiles of Gen Z

Generation Z currently bears the highest debt levels and faces greater obstacles to homeownership than any previous generation.

Average Personal Debt

$94,101 per Gen Z adult, in contrast to $59,181 for millennials.

Student Loan Balances

Average debt stands at $22,948 per borrower, growing at an annual rate of 6.72%.

Credit Card Debt

Increases exceeding 50% since March 2022, alongside Federal Reserve interest rate hikes.

Homeownership Age

The average age for first-time homebuyers ballooned to 38 in 2024, compared to 29 in 1980.

Debt Slavery” and Political Radicalization

Kirk warns that as predatory credit products proliferate—most notably Buy Now, Pay Later (BNPL) services—Gen Z's stake in capitalism diminishes. Notably:

BNPL Usage Rate

Approximately 60% of Gen Z employs BNPL services such as Klarna and Affirm for basic expenditures.

Global BNPL Market Projections

Expected to reach $560.1 billion by 2025, growing at a CAGR of 13.7%.

U.S. BNPL Market Projections

Projected to attain $122.26 billion by 2025.

Kirk posits that without significant assets or home ownership, young individuals lose their motivation to protect the capitalist system, leading to a preference for political solutions that promise immediate prosperity, potentially favoring candidates of a socialist persuasion.

Trump 2.0: Addressing Generation Z Concerns

The Trump administration's second-term agenda recognizes these frustrations and aims to shift long-term wealth strategies to better accommodate younger demographics, ostensibly to stabilize a volatile socio-economic landscape.

Budgetary Implications

A typical 30-year-old's wealth may diminish by approximately $7,500 under current fiscal provisions, which could escalate discontent among the youth.

This examination synthesizes current data and socio-economic trends that underscore the precarious position of Generation Z concerning debt, economic opportunity, and political agency, suggesting critical pathways for responsive policy development.