A substantial number of young Americans hold negative views towards the term “capitalism.” As a millennial, this is troubling. This negative attitude is pervasive among our cohort and is frequently referenced in both in-person discussions and on social media. Indeed, there have been plenty of references to “late stage capitalism” and the ever-sardonic joke that millennials will not be able to afford to buy houses in the future because of our affinity for avocado toast. A 2016 study conducted by researchers at Harvard University found that 51 percent of 18 to 29 year olds reject the term “capitalism.” A similar 2016 Gallup poll showed that millennials are the only age group to view capitalism more negatively than socialism. So, what is the reason for this animosity?
Millennials have a more pessimistic perception about their current and future financial situations than older generations have about their own. In 2013, the Brookings Institution published a report whose authors stated that 58 percent of millennials believe they are worse off than their parents. For comparison, 51 percent of Generation X-ers perceive themselves to be worse off than their parents and 45 percent of Baby Boomers believe that they are worse off. In 2011, researchers at the Pew Research Center published a study indicating that the more affluent and Republican members of the public are twice as likely to hold a favorable view of capitalism. Researchers noted in another Pew study that “faith in capitalism is another victim of the Great Recession.” It is reasonable to conclude that those who are pessimistic and have negative financial perceptions have less faith in their own economic system.