Can Gen Z truly opt out of capitalism?

It's no secret that millennials and Gen Zers are displeased with capitalism and the hustle culture that feeds it. Many polls and reports have charted the generations' disillusionment with — and attempts to move away from — America's economic system.

That's why we've seen trends like "#lazygirljobs," "quiet quitting" or "bare minimum Mondays" take off over the years. Even "no buy 2025," which trended on social media at the start of the year, can be viewed as a backlash to consumerism fueled by a capitalist society.

But can those who get the "the ick" — to borrow Gen Z slang — from participating in a capitalist society truly opt out? Idealists may not like the answer, but the only way to truly flout capitalism is to first achieve financial freedom by engaging with, yes, capitalism. The most significant reason is the issue of retirement.

Let's focus on Wall Street since it's often pointed to as a symbol of the systems that widen the wealth inequality gap — one of society's ills that young people blame on capitalism. In theory, opting out of any involvement with the financial district would need to happen to reject America's economic system. The problem is that the stock market is often the bedrock of what provides the opportunity to establish long-term financial security. This safety net often comes in the form of a 401(k) or similar retirement savings plan, which, when utilized effectively, means investing.

Those who are open to taking this step despite a disdain for capitalism may find it difficult to pick companies with business practices that are in alignment with their own moral or ethical sensibilities. It's almost impossible to utilize index funds without at least one unsavory corporation in the mix.

That reality created a business opportunity for brokerages. Financial institutions, robo-advisers, and app-based investing platforms capitalized on young people's desire to invest in alignment with their values by introducing or increasing the promotion of Environmental, Social and Governance (ESG) and Socially Responsible Investing (SRI) funds.

There were pitfalls, of course. It didn't take long for some financial firms to be called out for "greenwashing." Companies engaged in deceptive and misleading marketing to woo investors, which in turn resulted in a crackdown from the Securities and Exchange Commission in 2022. By 2024, American investors seemed to have cooled on ESG investing and accounted for only 11% of the $3.2 trillion invested globally in ESG funds, according to Morningstar analysis.

Those who are still interested in ESG investing face another challenge. New SEC regulations are making it harder for investors to influence corporate behavior, which in turn could handicap the ability of an ESG fund to perform the way an anti-capitalist would want.

If the meager options to invest somewhat ethically are lacking or otherwise limited, then what is an anti-capitalist to do?

Some could also try to simply save toward major financial goals — like a retirement fund — but it's an onerous undertaking. Assuming someone isn't stuffing funds under a mattress, it would take squirreling away roughly $43,000 in a 0.01% APY savings account for 35 years to amass the $1.5 million that many US adults believe is enough to retire comfortably. 

Even an optimistic 0.50% average APY on a high yield savings account over 35 years would require setting aside roughly $38,000 annually. That would yield roughly $60,000 a year. It's not a very encouraging figure when the Bureau of Labor Statistics recently reported that retirees spent an average of about $55,000 per year on their living expenses in 2022. As the cost of living increases, it's hard to imagine $60,000 being a comfortable sum to live off of in a few decades. There's also this elephant in the room: Even saving probably means keeping the money in a bank, which inherently means interacting with American capitalism.

What would be the most helpful to anti-capitalists is a shift in thinking. Instead of fixating on the societal consequences of investing the minimal assets within a personal 401(k) plan or taxable brokerage, they can focus on influencing larger-scale changes. For example, putting pressure on organizations, such as universities with endowments, to divest from certain industries —  like gun and fossil fuels businesses —  has a significantly larger footprint than personally opting out of the stock market.

As unsettling as it may be for many to come to terms with, there is no perfect way to completely walk away from an economic system that's so deeply ingrained into the fiber of American society. At least, not if you're thinking about your future. Wealth might not be the goal if capitalism is the enemy, but financial security should be a priority. This way, anyone aiming to make a meaningful difference in society will have the time, energy, and resources to achieve it.

Sketch: TBS

Erin Lowry is the author of "Broke Millennial," "Broke Millennial Takes On Investing" and "Broke Millennial Talks Money: Stories, Scripts and Advice to Navigate Awkward Financial Conversations."

Disclaimer: This article first appeared on Bloomberg and is published by special syndication arrangement.