Venture capitalist Chamath Palihapitiya sounded the alarm this week, arguing that young Americans face a convergence of financial and cultural crises that could leave them vulnerable to the grip of social media algorithms.
Chamath Backs Charlie Kirk On Youth Struggles
On the All In Podcast and in a post on X Tuesday, Palihapitiya praised conservative commentator Charlie Kirk for his blunt assessment of the struggles facing America's youth.
"One of the most powerful things that I think Charlie got absolutely and precisely right was the plight of young people," Palihapitiya said.
"The lack of home ownership, the overwhelming and just crushing debt, the failure of the school system, the inability to find a great job, the hookup culture that takes people away from having a committed relationship, getting married, having children."
Algorithms Exploiting Anxiety And Instability
He warned that if society fails to address these problems, digital platforms will exploit the resulting despair.
"We need to sort of find a way to give folks a chance to believe in something. And if you don't, I think the algorithm will take you to a very bad place," he said.
He echoed that message in a terse post on X: "Either humanity wins or the algorithms will…"
Rising Youth Unemployment Raises Economic Concerns
In 2025, rising unemployment among Americans under 25, particularly recent graduates, became a major economic concern.
Federal Reserve Chair Jerome Powell warned that young graduates, minorities, and younger workers struggled most to find jobs, citing a "low firing, low hiring environment."
While AI was often blamed for disrupting entry-level positions, Powell and economists at Goldman Sachs and UBS argued the real cause was a slowed economy and hiring restraint.
UBS chief economist Paul Donovan noted that the surge in U.S. youth unemployment ran counter to global trends and could not be pinned solely on AI.
For many in Gen Z, college began to feel like a poor investment, prompting a surge in trade-school enrollment and the rise of the "toolbelt generation."
Students sought careers in welding, plumbing, and electrical work for faster pay and no student debt, often promoting these jobs as "AI-proof."
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: CarlaVanWagoner / Shutterstock.com
