Here are the scenarios that are playing out

1. China overtakes the US -> US society directly decines and thats it. (Your scenario)

2. China overtakes the US -> It takes out the elites with everyone else (what Gen-Z likely wants to see)

3. US manages to hold on -> Elites continue their trajectory of snapping everything up leaving the crumbs for everyone else. (The best case scenario pro-US people can hope for right now)

4. US manages to hold on -> They somehow decide to reform and implement v2.0 of New Deal. (The dream of the bernie sanders wing ie. a pipedream at this point)

You are really showing your age with your attitude.

Put yourself in Gen-Z's shoes. What is realistic at this point? What can even millenials hope for?

The best case is that they end up being a transitional generation that helps their kids survive their childhood and grow into a decent adult life. The worse case is managed decline.

Either way Gen Y and Gen Z are done for. This amazing American system you defend has ruined these generations long term outlooks and Trump's bumbling has already written their final chapters.