8/15/2018
By Charles Payne, CEO & Principal Analyst

Gallup released a poll on Monday that made headlines everywhere, but the story was misinterpreted in my opinion. There isn’t a lot of news on Democrats embracing socialism, but there is a lot of news and red flags in young Americans abandoning capitalism.

I think the Gallup Poll is a critical cautionary tale for both parties. I, like most people, thought the headline was Democrats embracing socialism. However, a deeper dive into the data shows greater support in recent years. The bombshell is that it shows a sharper decline in positive views of capitalism. 

The Democrat’s positive view of capitalism tumbled to 47%, while 57% of the Democrat’s positive view of socialism was actually 1% lower than two years ago. It’s the same with adults, 18-29-year-olds, whose positive view of capitalism has swooned to only 45% versus 51% for socialism.

This is an issue for Democrats because many think the rejection of capitalism means they should turn to socialism despite its historical trail of broken nations. Conversely, Republicans continue to cling to the same old "free market" talking points that many believed allowed the hollowing out of the nation's heartland. Folks want a chance, but most folks think the limits are caused by the hoarding of cash and opportunities by the wealthy (this was even a factor in the Brexit vote).

Meanwhile, the elites are tone-deaf, or simply have such little regard for real-life experience of others. They insist those that think differently are ill-informed or stupid. I'm only offended when these folks call me anti-free market and their arrogance in thinking they have all the answers. Adam Smith wrote books, not a Bible. 

If both parties ignore these trends, we are going to see the kind of destabilization of the country in the future, in a search for radical solutions.

By the way, the poll reflects comments from Credit Suisse about ‘The Unlucky Millennials,’ which suggested Millennials have had an unlucky start to adult life. The report talks about student loan debt and the lack of opportunity, or perhaps the lack of gumption to do things such as starting a business.

It is sometimes claimed that Millennials are starting more businesses than earlier generations but data suggest otherwise: only 2% of Millennials in the United States are self-employed, versus 8% of Generation Xers (those born between 1965 and 1980) and baby boomers.

These are disturbing trends that the elites better see and acknowledge.

Charles Payne
Wall Street Strategies

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