According to Fortune, Intuit CEO Sasan Goodarzi presented a stark view of the economy at the Fortune Brainstorm AI conference. Citing data from Intuit’s platforms like TurboTax and Credit Karma, Goodarzi said Gen Z credit card balances are up 36-37% and their credit scores are the lowest ever recorded. He noted the job market remains strong, which is the “silver lining” keeping things together as this generation spends. This is happening despite a Pew Research Center report showing Gen Z’s inflation-adjusted median pay is better than prior generations at their age. However, a SmartAsset report finds over half of Gen Zers live in cities where their median income is under $50,000, and millennials and Gen Z combined hold just 10.7% of the nation’s wealth.
The silver lining is a credit card
Goodarzi’s take is fascinating, and a bit scary. Basically, he’s saying Gen Z is using their credit lines as a financial shock absorber. They have jobs, so they’re spending. But inflation, especially on essentials, has gutted their real purchasing power. So the plastic comes out. Now, on one level, this consumer activity is what’s “keeping things together” and arguably preventing a broader recession. But here’s the thing: this isn’t sustainable growth. It’s debt-fueled survival. It feels less like a healthy economy and more like people running on a treadmill that’s gradually speeding up, using credit just to keep pace.
The K-shaped reality for Gen Z
The data paints a clear picture of a K-shaped economy where Gen Z is stuck on the downward leg. Sure, a Pew report says their pay looks good on paper. But when you live in a world where headline inflation is still at 3% and housing costs are insane, that statistic feels pretty hollow. Their wealth share is minuscule. So you have a generation with decent income but no wealth buffer, facing high costs, and their main tool is a high-interest credit card. That’s not a great recipe for long-term stability. It’s how people get trapped.
A broader watchfulness
And it’s not just them. Goodarzi pointed out that “everybody is being watchful.” That’s the real tell. When even those with more means are pulling back, it highlights how pervasive the affordability crunch is. The Intuit CEO has a front-row seat to the financial data of millions, so this sentiment carries weight. It suggests the credit card spending we see from Gen Z might be the most visible symptom of a wider economic anxiety. They’re just the ones with the least cushion, so they’re hitting the debt ceiling first.
What happens when the music stops?
So we’re left with a big, uncomfortable question. What happens if the job market softens? That’s the only thing “keeping things together,” according to Goodarzi. If unemployment ticks up, the entire mechanism breaks. The debt doesn’t go away. Delinquencies would soar. The temporary dam holding back economic contraction would burst. This isn’t just a Gen Z problem; it’s a systemic risk. They’re essentially acting as the canary in the coal mine, using credit to maintain consumption in an economy that’s left them behind. We’re all watching to see if that canary can keep singing.
