Yesterday, in Part 1 of this series, I raised the concern that markets face with the growing discontent of young people. Today in Part 2, I argued that European unrest and Bernie Sanders’ astonishing ability to mobilize young Americans are examples of a generation losing faith in the system. In Part 3, I outlined the signals investors should track to anticipate when social unrest spills into markets. Now, in Part 4, I want to look at possible solutions — and why investors should care.
What’s broken
Youth employment: Millions of young workers face unstable jobs, low pay, or no prospects at all.
Housing affordability: Rents and mortgages have outpaced wages for more than a decade.
Wealth inequality: A handful of asset-holders benefit massively from monetary expansion, while most young people fall further behind, becoming desperate.
Markets can mask these problems for a time, but when a generation feels permanently excluded, instability follows. Europe is showing that path today. America can still act.
What could work
Targeted federal employment projects: Direct youth hiring in infrastructure, renewable energy, and community renewal. This would echo the successful New Deal–era programs that gave work, skills, and dignity to millions.
Affordable housing initiatives: Tax incentives and federal backing for large-scale low-cost housing developments. Housing is both a social stabilizer and a long-term wealth builder.
Fairer tax policy: Modestly higher taxes on extreme incomes could fund youth-focused programs without destabilizing private enterprise.
Education and skill investment: Vocational programs, apprenticeships, and public–private training partnerships would prepare youth for industries that will still matter 20 years from now.
Why investors should care
These are not just social policies; they are investments in stability. It’s like when I bought a yacht (“Time & Space’) and my friends warned it was a hole in the water to pour in money, but in reality it was an investment in my health so I could do the things that matter most to me. When we invest in youth, they have work, housing, and hope, consumer demand steadies, political risks ease, and markets perform more reliably. Without them, volatility rises, safe-haven flows accelerate, and investor confidence erodes.
The Sanders signal, revisited
Bernie Sanders, at 84, still draws stadiums of young people. That’s not nostalgia; it’s a sign that youth are desperate for leaders who speak to their reality. Investors should not dismiss this as fringe politics. It’s the social undercurrent that will shape the economy — and markets — for the next decade.
Takeaway
Gold may be today’s canary, but youth are tomorrow’s. Solutions exist, but they require political courage. If Washington fails to act, investors should prepare for greater volatility, sharper corrections, and a long-term erosion of confidence. If, on the other hand, our leaders succeed, both society and markets will survive and grow.