Children and young people’s mental health appears to be worsening, despite marked declines in many forms of severe adversity over recent decades. This article argues that young people’s distress and withdrawal from society are understandable responses to an environment that is simultaneously over-protective in some respects and chronically threatening in others. It calls for more systemic thinking in how we support children, expanding opportunities for face and overcome manageable challenges, while acknowledging the very real structural stressors shaping their lives.