“Treat your employees well, and all of America benefits.” – Male, 50, Republican, AZ
In next week’s Democratic debates, capitalism as currently practiced will be placed firmly on trial. In front of a charged primetime audience, it seems safe to predict that candidates will focus squarely on the failings of unfettered, shareholder-driven capitalism as a system that perpetuates inequality and dismantles the American Dream.
They will present, in varying degrees of detail, their respective visions for reforming a system that has improved the lives of millions, yet left millions more behind. Some will rail against low corporate taxes and low wages, others will call for regulatory reform and greater government oversight. All will champion worker rights and greater, shared prosperity for more Americans.
To state the obvious, this topic is a tricky one. The relationship between business and the American voter is long and intricate. In one sense, the story of the American people is the story of American business. As I’ve written previously, Americans don’t want socialism. Most don’t want to replace capitalism, or to punish capitalists. They want capitalism to work better for them, and for as many Americans as possible.
In short, they want the Dream back.
“Be honest and ethical. Set a good example for the United States and capitalism.” – Female, 55, Democrat, TN
JUST Capital has spent the last five years polling over 85,000 people, on a fully representative basis, to paint a detailed picture of how Americans feel about capitalism, jobs, and the responsibilities of corporate America. The results are surprising in that they tell the story of a nation more united in its belief that business can and must be better than one divided over economic ideology. They also provide a unique insight into people’s lived experience in the real economy and a blueprint for the kind of economy they want.
In the leadup to the 2016 election, for example, it was clear to us that jobs, wages, and financial vulnerability were the key issues, and that whoever spoke to those issues most effectively would be in the driver’s seat. This is not to suggest that our polling can predict election results, but there’s no doubt that the sentiments we glean from our polling weigh heavily in the voting booth. I also believe these are rare areas of general consensus.
So what are we hearing from our polling at this point in time?
We know that the vast majority of Americans from across the political spectrum agree that a company’s treatment of its employees, customers, and community is more important than the returns it makes for shareholders. We know people believe that the pendulum has swung too far in favor of shareholders, and that greater stakeholder balance is required. And we know people want companies to invest in their workers, pay fairly for a fair day’s work, provide an inclusive, safe workplace, create decent jobs in places that need them, invest in healthy families and communities, apply the same moral standards wherever they go in the world, protect the environment, and stand up for what is decent and right.
And the thing is, this model of stakeholder capitalism doesn’t mean shareholders lose out. Quite the opposite. We’ve found time and again that companies that look after their employees, pay good wages, invest in communities, and do all the other good things that just companies do can actually translate into sources of alpha and better financial outcomes.
“Help us all keep steady, good paying jobs to support our families.” – Male, 83, Republican, California
Many of the debate candidates’ positions reflect these sentiments. Senator Elizabeth Warren’s view that companies need to move beyond a shareholder-focused mentality, and Mayor Pete Buttigieg’s belief that “a healthy capitalist system, working within the rule of law, is the stuff of American growth and can be the stuff of equitable growth” track closely to what we are hearing. The focus on low wages is also on point. The endorsements by many candidates of a $15 minimum wage play to concerns many Americans have over wage depression and their ability to make ends meet, even if they don’t address the systemic fault lines that make it even necessary.
What of the right? So far, it seems a grand philosophy is lacking. Granted, some Republicans like Senator Marco Rubio are talking about the problems of our current structure, but there have been few serious critiques of the present capitalism model and no clear vision for how market-based solutions can ameliorate our urgent social challenges. President Trump’s focus on cutting corporate taxes and deregulation adheres to the classic trickle down economic theory of the right but it doesn’t really address the immediate needs of many blue collar women and men who helped elect him or fulfil the promises that they were given. Workers were purported to be the primary beneficiaries of Trump’s TCJA, but instead shareholders have reaped over 80% of the windfall.
The hard working people of America have already given our politicians the blueprint for adapting our system of capitalism to the realities of today, and it’s high time we acted on it. Whoever ends up winning the Democratic primary and whatever platform President Trump decides to run on, they would do well to take this blueprint to heart.
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