But when you look a little more, only 20% say that socialism is better than capitalism, and 27% “don’t know.” Rasumussen specifically notes that they didn’t define either term, which leads me to think that this poll might be a better indicator of Americans’ economic understanding than their ideological stance. Rasmussen cites another poll in which 70% of respondents prefer “free markets” over some alternative. Rasmussen interprets this as evidence that Americans aren’t convinced that are markets are free. It might just as well mean that people don’t know what capitalism is, and don’t know what free markets are¹.

It is also interesting that socialism is far more popular among younger people. Perhaps many of the older generations remember the Cold War better, and because they lived then, have a better handle on the differences between capitalism and socialism. It could also be that older people typically have more “skin in the game” and thus actually care enough about economic policies to know their preferences.

It seems that the headline tries to shock by suggesting that support for capitalism is weak. In fact, the details seem to suggest that economic understanding is weak. A comparison to an earlier poll with the same questions would help, but it looks like Rasmussen might be trying for a shock value without much backup.

1. The term “free” has a strong emotive appeal in America, and people often will gravitate toward things that are “free” regardless of whether the thing is actually “free”. One wonders how people would respond if the term were “liberal economics.” back↩