So...China has More Capitalists than America?

According to lore, America is the bastion of free-market capitalism and China is the state-planning communist superpower. But facts, as they say, are tricky things. Perhaps no facts are more surprising than this one: more Chinese people than Americans support the idea that the free market is the best system. A study by GlobeScan showed that 67% of Chinese people believe that the free market system is the best economic system, compared with only 59% of Americans. A mere eight years ago, 80% Americans were in favor of the free market. The 21% drop represents one-in-five Americans, a huge blow to pro-market politicians. GlobeScan Chairman Doug Miller said that “The poll suggest that American business is close to losing its social contract with average American families that has enabled it to prosper in the world. Inspired leadership will be needed to reverse this trend.” What social contract? The one that has operated for the better part of America's existence. According to the unwritten deal, America's lower and middle classes tolerate the accumulation of wealth that capitalism generates. In exchange for that, the wealthy provide opportunities, jobs, and pay a large share of the taxes that support the government and its programs for the less well-off. Across the globe, support for capitalism trends along with the strength, capability and willingness of the wealthy to bear their half of the bargain. Take for example Germany. Some 68% of Germans support “free market capitalism” as ideal, even though much of their political system is centered around what would be mistakenly derided as socialism here. Germany's largely unionized workforce is included in management decisions, and the working class gets free health care, 44 paid sick days per year, and excellent unemployment benefits. They also run a trade surplus, so it cannot be said that their economy is some backward hellhole. Americans receive privately-funded insurance, 0 mandated sick days, and terrible unemployment benefits. The social contract differences could not be more stark. Will this add up to political changes in 2012 and beyond? Possibly. The experience of the Great Depression so traumatized the nation that an entire generation of voters made the promise to never let people suffer like that again. As that generation dies off, its program ideas — medicare, medicaid, social security, jobs programs, unemployment, food stamps — are all under fire from people who ought to know better. The Great Recession of 2008 and beyond has realigned many political fault lines, including introducing the reality that capitalism has an unsavory side for many people. These fault lines have the probability of realigning American politics in the next generation — something that has not happened since...well, since Roosevelt and the Democrats dominated the Depression and post-Depression eras. Republicans and Democrats considering further cuts in the social contract, and tax cuts for wealthy folks or corporations, may want to reconsider in light of the study's findings.