Capitalism vs. SocialismA Defining Moment for American Business

INSIGHTS | ACTIONS | RECOMMENDATIONS

CCC100 | SEPTEMBER 16, 2019

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What we will cover today:

• Data insights: What do polls and research tell us about the underlying issues at play?

• What you are hearing: Does the data match what you/your members are experiencing?

• The path forward: How can we work together to inform and empower?

Data Insights

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1. Don’t panic(But don’t ignore)

Americans still favor capitalism over socialism (Gallup)

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However, capitalism has less support among key demographics

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Women, Hispanics, and young Americans are much less positive on capitalism

Capitalism (Favorable – Unfavorable)

Socialism (Favorable – Unfavorable)

Overall 55-27 27-55

Republicans 71-15 15-73

Democrats 42-36 40-37

Independents 53-27 25-58

Women 41-33 28-47

Hispanics 45-43 34-54

18-34 44-38 40-42

Americans under 40 express

greater support than opposition for both capitalism (+19 points)

and socialism (+10 points)

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51%

47%

32%

37%

0%

10%

20%

30%

40%

50%

60%

Capitalism Socialism

Adults Under 40

Favorable Unfavorable

For Americans under 30, socialism viewed more favorably

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Women under 30 are evenly split between favoring and opposing capitalism

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Both men and women under 30 hold net positive views of socialism.

40%

48%

39% 37%

0%

10%

20%

30%

40%

50%

60%

Capitalism Socialism

Women Under 30

Favorable Unfavorable

60%

52%

30%33%

0%

10%

20%

30%

40%

50%

60%

70%

Capitalism Socialism

Men Under 30

Favorable Unfavorable

Among Millennials and Gen Z, Capitalism still seen as the “better” system; more split on which serves the “greater good”

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Many young Americans feel like they can’t get ahead or afford to invest in their future

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1. Don’t panic(But don’t ignore)

We are not in the midst of a socialist wave. Still, there is work to do, particularly with younger Americans

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2. It’s not an “either/or” proposition

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One in four Americans express positive views on both capitalism and socialism

One in six have a negative view of both

Young Americans lean toward capitalism – but not “pure” capitalism

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Very few land on either of the far ends of the spectrum

Americans see problems they do not believe the current economic system is solving – but they are not convinced that

socialism will address them, either

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For each of the following outcomes, which system would be more likely to deliver that outcome?

Capitalism Socialism

Being able to provide good wages and income to support a family 50 25

Having a better future for the next generation 50 26

Having a good quality of life 50 27

Having a secure retirement 49 25

Keeping taxes low for the middle class 47 26

Being able to manage the cost of living 47 28

Having a system in which everyone gets a fair shot 42 33

Having a healthcare system that is affordable and accessible 40 37

Americans do not view socialism and capitalism as mutually exclusive systems. They are just

focused on how to solve their problems.

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2. It’s not an “either/or” proposition

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3. This can’t be ideological

Describing policies as “socialist” can boost base Republican opposition — but it causes Independents and soft Democrats

to become more supportive of the same policies

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More Likely – Less Likely

More or less likely to vote for a candidate… Overall Strong GOP Independents Soft Democrats

who supports policies like a single-payer healthcare system, free college tuition, eliminating student loan debt, and a massive restructuring of our energy industry to combat climate change even if those policies mean higher taxes for the middle class.

37%-59%

12%-83% 32%-64% 68%-29%

who supports SOCIALIST policies like…(same as above) 39%-58%

3%-95% 49%-51% 71%-24%

Net Change Towards Supporting “Socialist” by explicitlyadding the term to the description

-3 -20 +29 +9

Ideological arguments, even when framed as a question of fairness, do not appear to resonate

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Many young adults think specific socialist policies could be “fair.”

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If this becomes a purely ideological, philosophical, or political battle, it will backfire with some key audiences.

It must be about specific ideas, real world examples, and showing how individuals would be personally

affected by socialist policies.22

3. This can’t be ideological

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4. Focus on specific examples and the cost to individuals

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39%

51%

0% 10% 20% 30% 40% 50% 60%

Fair or Unfair: Raising taxes on middle class people by about $19,000 per year to cover the expense of new programs that would combat climate change,

forgive student loan debt, provide universal health care and free college tuition to everyone.

Unfair Fair

Focusing on the personal costs of socialist policies is the most effective way to increase opposition

Focusing on the personal costs of socialist policies is the most effective way to increase opposition (II)

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A recent poll of registered voters in battleground congressional districts revealed a significant increase in opposition to Medicare for All when survey participants were informed that “independent studies have shown that Medicare for All as proposed in Congress would mean doctor shortages, longer wait times for urgent medical care and delays in access to the latest drugs for cancer and other serious diseases.”

Net Movement Total Oppose

Overall -12 60%

18-44 -12 49%

Independents -14 58%

Socialism must be defined through practical examples.

The cost of socialist policies–especially on middle class individuals and families–is the most powerful

argument against socialism26

4. Focus on specific examples and the cost to individuals

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5. Play offense, not defense

Over the past decade, positive views of capitalism among young Americans have fallen significantly.

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Positive views of socialism have risen, but not to the degree positive views of capitalism have fallen

30%

35%

40%

45%

50%

55%

60%

65%

70%

2010 2012 2016 2018

Views of Capitalism and Socialism: Age 18 to 29

Positive View of Capitalism Positive View of Socialism

A simple definition moves many “unsure” towards “capitalism”

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Capitalism scores a 16-20 point jump in positive responses after

the definition in provided

Free Markets and Free Enterprise viewed more favorably by young Americans than “Capitalism”

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Negative views of “capitalism” double negative views of “free markets,” “free enterprise”

Among every age group, voters say pro-capitalism messaging works better than anti-socialism messaging

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We need to build up capitalism more thanwe need to tear down socialism.

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5. Play offense, not defense

Do’s & Don’ts

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Capitalism vs. Socialism – Do’s and Don’ts

DON’T DO

Don’t oversell the economy. Do acknowledge that we can do better.

Don’t just use shorthand or labels (e.g. “socialist”) Do focus the argument about the costs of socialist

policies

Don’t make it a political or ideological fight. Do make it about the personal costs of socialist policies.

Don’t make it an “either/or” proposition between capitalism and socialism.

Do recognize that people are more interested in a solution than the system.

Don’t assume people know and understand what

socialism and capitalism really mean.

Do provide a basic, neutral definition and use “free-

market” and “free enterprise” over “capitalism”

Don’t just attack socialism. Do build-up capitalism

The Path Forward

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Working Together to Inform and Empower

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What we will provide:

• Distilled data insights and polling (today’s memo)

• Coming soon: “Solutions” one-pagers outlining challenges facing Americans, corresponding socialist proposals, and better capitalism solutions

• Coming soon: A new communal “Business for Good” digital platform to illuminate the positive impact businesses (including your members) are having on their communities, our economy, and our society

We want to know: How else can we help equip you?