Faith in American capitalism has plummeted as government leaders continue to undermine growth, widen inequality and deepen popular distrust, the Financial Times said in a recent opinion article titled “What went wrong with capitalism.”
Ruchir Sharma, chair of Rockefeller International, wrote the article and cited the latest Pew polls where support for capitalism has fallen among all Americans, particularly Democrats and the young. The article noted that “among Democrats under 30, 58 percent now have a ‘positive impression’ of socialism; only 29 percent say the same thing of capitalism.”
The article emphasized that most Americans do not anticipate their financial situation improving within the next five years – a record-low since the Edelman Trust Barometer began asking this question over two decades ago. “Four in five doubt that life will be better for their children’s generation than it has been for theirs, also a new low,” wrote Sharma.
The article discussed the growing inequality and lack of upward mobility in the U.S. It stated that compared to other countries besides Britain, Americans are the least likely to earn significantly more than their parents. Meanwhile, during the record pandemic bailouts, the fortunes of top U.S. tycoons increased by tens of billions of dollars within just 12 months.
“Capitalism’s premise, that limited government is a necessary condition for individual liberty and opportunity, has not been put into practice for decades,” stated Sharma.
Expressing worry about where the U.S. is leading the world now, Sharma warned against the overconfidence of U.S. political leaders, which he believes needs to be contained before it does more damage.
