Depends on which countries you refer to. In the Western world it's turning people into binge consumers. In developing countries, it's producing borderline slave labor.
The current generation is easily influenced and not only by the world of fashion, but generally speaking fashion is a factor with great impact on the youngsters. They often wear what they see on TV without knowing exactly what that means. They don't understand the basic principles of fashion and without proper guidance they're the subject of many fails.
Fashion is a part of culture and every culture exerts impact on people who directly and indirectly follows. If the impacts crosses the limit then you find something noticeable. For instance entertainment, the exceeding limits of its impact is the unhealthy usage of time, regardless of the age one can find the ill traits. Similar might be the case with fashion too but that need to be analysed realistically, for which we need to narrowed down the areas of impacts, instead of generation let's talk about our children. They get effected only when the internal atmosphere fail to contain the pressure and influence of the external one. If parents and other members of the family don't have a say over the behavioral attitude of the children obviously they get attracted to the outside world.
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