A global survey in a paper published last month by German historian and sociologist Rainer Zitelmann highlights a surprising global sentiment: out of 34 countries surveyed, only six—Poland, USA, Romania, Vietnam, Mongolia, and Nigeria—exhibit predominantly pro-capitalist attitudes. This is a stark contrast to the more anti-capitalist leanings prevalent across Western Europe and beyond.
In the United States, the perception of capitalism is more favorable, yet not overwhelmingly so. A Pew Research Center poll from August 2022 revealed that only 57% of Americans view capitalism positively, with a mere 21% holding a very positive impression. In contrast, support for socialism is 36%, with 6% being very positive and 30% somewhat positive.
An October 2021 Gallup poll found that in the USA the vast majority of Republicans (72%) had a positive view of capitalism versus socialism (14%), but more Democrats had a positive view of socialism (65%) than capitalism (52%). Support for socialism is a major political divide between partisans.
The discrepancy in support for capitalism may be one of branding, negative connotations associated with the term itself. Gallup reported a 60% overall positive view toward "capitalism," but change the phrase to "free enterprise" and support soars to 84%. Zitelmann found significantly higher support globally for "economic freedom" than "capitalism."
Since World War II, capitalism has been a transformative force in the global economy, driving innovation, growth, and the expansion of trade. Post-war reconstruction, particularly in Europe under the Marshall Plan, helped rebuild economies through capitalist principles, laying the groundwork for the European Union's single market. In Asia, Japan's embrace of a capitalist economy led to a period of rapid economic growth, known as the ‘Japanese Economic Miracle,’ transitioning it into one of the world's leading economies. Similarly, China’s economic reforms starting in the late 20th century, though still under a communist government, introduced capitalism in the form of foreign investment and private ownership, which elevated hundreds of millions more out of poverty than communism ever did.
Despite its successes, capitalism faces criticism for perpetuating exploitation, persistent poverty, environmental harm, fomenting fascism, and even "cancel culture." Even businesses denigrate the economic system responsible for their success. In 2020, Lululemon was famously mocked on social media for promoting an event about "decolonising gender" and how to "resist capitalism."
In recent years critics have focused on inequality as the critical failing of capitalism. For those seeking to increase the role of government in society, inequality is attractive because the only practical "solution" is increased taxation as a form of redistribution. However, it isn’t clear that higher taxation would level inequality, US states with high taxes also have high inequality. Globally, we might not even be experiencing inequality at all. Economist Branko Milanović argues that, “the world is growing more equal than it has been for over 100 years.”
None of this is new. Internet searches for failures of capitalism peaked in 2010 and have mostly declined since. (Capitalism + fail 2004 to present).
Anti-capitalists seek to modify or replace capitalism with some other type of economic system. Today socialism is the most common "solution" proposed to capitalism.
Socialism has consistently failed, clashing with human nature and leading to widespread poverty and repression. The Soviet Union's abolition of private markets resulted in famine and environmental damage, alongside severe political persecution. China's attempt at communism caused immense suffering and death. In Venezuela, socialist policies transformed a once-prosperous nation into one stricken by hyperinflation and a humanitarian crisis. Every socialist experiment over the past 100 years has resulted in authoritarian governments that suppress civil rights, stifle innovation and productivity, achieve "equality" through deprivation, and inflict environmental harm.
Capitalism is not without its need for checks and balances. Government intervention is necessary to prevent significant societal harm, but such intervention should be limited with its own controls. Participants in a capitalist economy frequently use government intervention to advance their own economic goals as shown by Bill Gurley in his September 2023 talk “2,851 Miles” about how Silicon Valley has evolved to use government intervention for business advantage.
Liberal capitalist democracies have raised standards of living around the world to unprecedented levels. A Brookings study in 2018 reported that half of the world's population has become middle class or wealthier, around 2030 the fifth billionth person will join the middle class. In addition to dramatically reducing poverty, we have enjoyed rising rates of clean water, education, longevity, and freedom.
The single most powerful driver of prosperity is a law-governed and competitive market economy, overseen by an honest judiciary. Capitalism may be in need of some rebranding, but it is the economic system that has brought so much happiness, health, and wealth around the world.
Peace through understanding.
Notes:
Zitelmann, R. 2023. Attitudes towards capitalism in 34 countries on five continents. Economic Affairs. https://onlinelibrary.wiley.com/doi/epdf/10.1111/ecaf.12591
Pew Research Center. 2022. Modest Declines in Positive Views of ‘Socialism’ and ‘Capitalism’ in U.S. https://www.pewresearch.org/politics/2022/09/19/modest-declines-in-positive-views-of-socialism-and-capitalism-in-u-s/
Saad, L. 2021. Socialism, Capitalism Ratings in U.S. Remain Unchanged. Gallup. https://news.gallup.com/poll/357755/socialism-capitalism-ratings-unchanged.aspx
Mounk, Y. 2023. The Tale of Rising Inequality Turned Out to Be Wrong. The Atlantic. https://www.theatlantic.com/ideas/archive/2023/07/economics-inequality-piketty-milanovic/674702/
Roser, M. 2016. The world is much better than you think. Vox. https://www.vox.com/the-big-idea/2016/12/23/14062168/history-global-conditions-charts-life-span-poverty
Brookings. 2018. A global tipping point: Half the world is now middle class or wealthier. https://www.brookings.edu/articles/a-global-tipping-point-half-the-world-is-now-middle-class-or-wealthier/
12mv2.com. 2023. 2,851 Miles - Bill Gurley Transcript Slides. https://12mv2.com/2023/10/05/2851-miles-bill-gurley-transcript-slides/.