A Warning From Economic History
Gary Shilling, the economist who built his reputation by accurately predicting both the dot-com bubble and the housing bubble collapses, is now sounding alarms about a different kind of economic disruption. According to recent reports, Shilling believes Generation Z faces a particularly challenging future in the age of artificial intelligence—one that may require substantially more effort for potentially diminished returns compared to their parents’ generation.
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The 88-year-old financial forecaster, who has been analyzing economic trends for nearly five decades, reportedly told Business Insider that young people are “going to have to work a lot harder” than they might anticipate to achieve success. His analysis suggests the disruptive force of AI technology could leave many workers displaced and facing limited economic prospects.
The AI Displacement Challenge
What makes Shilling’s warning particularly noteworthy is his track record of identifying major economic shifts before they become apparent to mainstream observers. Sources indicate he views AI-driven worker displacement as “probably a genuine concern,” with the potential to push some individuals into lower-paying service jobs. His comments reflect growing concerns among economists about how rapidly advancing automation technologies might reshape labor markets.
“The world does not owe any of us a living,” Shilling reportedly emphasized, suggesting that younger workers will need to aggressively seek out learning opportunities and identify areas where they can “add value” in an increasingly automated economy. Industry analysts note that this perspective aligns with broader discussions about productivity becoming the key determinant of living standards in AI-dominated workplaces.
Generational Wealth Gaps Widen
Perhaps the most sobering aspect of Shilling’s analysis is the suggestion that many young people may never achieve the same level of wealth as their parents. According to the reports, he believes their lives are likely to “involve a lot of hard work and limited incomes and purchasing power,” with the fear of never matching parental wealth levels being something that “may be true.”
This assessment comes amid already concerning trends about generational wealth transfer and the financial challenges facing younger workers. Meanwhile, Shilling reportedly expressed concern that many young people “don’t seem all that convinced that they’ve got to really dig in,” potentially leading to misplaced expectations about economic success.
Investment Behavior and Economic Mindset
The veteran economist apparently connects this generational mindset to what he sees as problematic investment behaviors. Sources indicate he pointed to speculation in riskier assets like meme stocks and cryptocurrency as symptomatic of expectations that “things are going to come very easily—and it never quite works out that way.”
“When people have that expectation, then they get lazy, they get sloppy,” Shilling reportedly added, suggesting that the discipline required for long-term economic success may be at odds with current cultural trends. His comments arrive during a period of notable volatility in both traditional and alternative investment markets.
Longevity Through Work
In a revealing personal note, Shilling apparently shared that he has no plans to retire from the firm he founded in 1978. “If I retired then what would I do?” he reportedly asked, despite acknowledging some physical limitations. His perspective that working is key to longevity offers an interesting counterpoint to his warnings about the challenging work future facing younger generations.
The economist, who still maintains interests as an amateur beekeeper and “do-it-yourselfer,” represents a generation that built careers through decades of sustained effort. His warnings about the AI era suggest he believes similar dedication will be required for Gen Z’s survival—even if the economic rewards may prove more elusive than for previous generations navigating their own technological transformations.
