Trump effect? Poll shows America now views capitalism less favourably, but socialism isn’t winning

Americans’ belief in capitalism has plunged to 54 per cent from 60 per cent in 2021, but socialism is not the talk of the town either.

A recent Gallup survey has found that 54 per cent of US citizens favour capitalism over socialism, a decrease of 6 per cent since 2021. However, Americans continue to have a negative outlook on socialism, with 57 per cent believing that it is not the ideal economic and political system for the US.

Meanwhile, support for capitalism has declined among both Democrats and independents this year, with each group showing an eight-point drop since 2021. For the first time, fewer than half of Democrats (42 per cent) now view capitalism favourably, while a slim majority of independents (51 per cent) still hold a positive view. In contrast, Republican opinions remain largely stable, with about 75 per cent continuing to view capitalism positively.

US President Donald Trump has been in office for nine months and since then, his economic policies have shaken up the basis of America’s business standards. Tariff wars with US allies have stoked fears of isolation and adverse economic effects.

More Americans back small businesses

This year’s survey expanded to include Americans’ views on free enterprise, big business, and small business, alongside capitalism and socialism.

Small businesses received near-universal approval, with 95 per cent expressing a positive view, and free enterprise also remained popular at 81 per cent. In contrast, big business drew significantly more criticism, with only 37 per cent viewing it positively and 62 per cent expressing a negative opinion.

On the other hand, the perception of big businesses has declined in recent years, including a nine-point decline this year on top of a six-point drop in 2021.

Support for big business varies sharply along party lines, with 60 per cent of Republicans, 36 per cent of independents, and just 17 per cent of Democrats viewing it positively. The figures for independents and Democrats represent record lows.