Is Trust in Our Economic System Really Decreasing?

Capitalism in its many forms is the dominant socioeconomic model in the world today. Yet many who have participated in, even benefited from, that model agree it’s not working the way it ought to.

Recently, I co-hosted a group of policymakers, business leaders and heads of think tanks at a dinner in Washington, D.C., sponsored by the Center for the Study of Capitalism at Wake Forest University and the Denny Center for Democratic Capitalism. The question at the center of the evening: “Is trust in our economic system really decreasing?” 

The answer, it appears, depends on who you ask. Consider these findings:

·      A Gallup survey found while views on capitalism and socialism have remained relatively consistent over the last 10 years (with 60% having positive views of capitalism versus 38% with positive views of socialism), the percentage of the population that believes government should do more to solve problems has increased from 38% to 54%.

·      65% of Americans said they supported capitalism, but most are having a negative experience with it. Just 20% said they believed the economy was working well or they were satisfied with capitalism, according to a survey conducted by the Center for the Study of Capitalism at Wake Forest University School of Business.

·      Age is a factor, though not as significant as one might think. In the same survey conducted by Wake Forest’s Center for the Study of Capitalism, a majority of older Americans responded they currently favor a shift to a more free-market economy, but they still want government to fix problems in specific areas of the economy relevant to them, especially healthcare. In contrast, only 45% of younger Americans favor a shift to a more free-market economy. They favor government working to fix problems in many more areas of the economy.

The key takeaway, Wake Forest found, is that most Americans “are not looking to make a change from capitalism but changes to capitalism.”