America's continued move toward socialism

Axios Jun 25, 2021 - Politics & Policy America's continued move toward socialism Felix Salmon Felix Salmon , author of Axios Markets Axios on facebook Axios on twitter Axios on linkedin Axios on email Illustration of Karl Marx wearing a pair of American flag sunglasses and t-shirt Illustration: Sarah Grillo/Axios Just half of younger Americans now hold a positive view of capitalism — and socialism's appeal in the U.S. continues to grow, driven by Black Americans and women, according to a new Axios/Momentive poll. Why it matters: The pandemic has caused millions of Americans — including many younger Republicans — to re-evaluate their political and economic worldview. That's likely because of two factors: a renewed focus on deep societal inequalities and the tangible upsides of unprecedented levels of government intervention. "The pandemic is sure to have lasting impact for decades to come," said Jon Cohen, the chief research officer for Momentive (formerly SurveyMonkey). The intrigue: Shifts are happening on the right as well as the left, at least among those under 35. Just 66% of Republicans and GOP-leaners ages 18-34 have a positive view of capitalism, down from 81% in January 2019, when we first polled on these questions. 56% of younger Republicans say the government should pursue policies that reduce the wealth gap, up from just 40% two years ago. By the numbers: In 2019, 58% of Americans ages 18-34 reacted positively to the word capitalism. That's plunged to 49% today. Back then, 39% of all U.S. adults viewed socialism positively. That has since ticked up to 41%. Socialism has positive connotations for 60% of Black Americans, 45% of American women and 33% of non-white Republicans. Those numbers have grown over the past two years from 53%, 41% and 27%, respectively. Only 48% of American women view capitalism in a positive light, down from 51% two years ago. Today, 18-34 year-olds are almost evenly split between those who view capitalism positively and those who view it negatively (49% vs. 46%). Two years ago, that margin was a gaping 20 points (58% vs. 38%). The bottom line: Politicians looking to attack opponents to their left can no longer use the word "socialist" as an all-purpose pejorative. Increasingly, it's worn as a badge of pride. Methodology: The Momentive online poll was conducted June 11-15 among 2,309 adults ages 18 and older in the United States. The modeled error estimate is +/- 3.0 percentage points. Axios on facebook Axios on twitter Axios on linkedin Axios on email Go deeper Marina E. Franco (Noticias Telemundo for Axios) Marina E. Franco (Noticias Telemundo for Axios) Sep 28, 2021 - Economy & Business Poll: Latinas more likely to open their own businesses, despite pandemic setbacks A shopkeeper hands a customer a book Janie Isidoro, owner of My Corazon, a Chicano business in downtown Hanford, Calif. Photo: Al Seib/Los Angeles Times via Getty Images Latinas in the U.S. are more likely to own, or plan to open, their own businesses than non-Hispanic women, despite the pandemic’s disproportionate burden, a recent poll found. Why it matters: The survey, conducted by Telemundo, the Latino Victory Foundation and Hispanics Organized for Political Equality, suggests Latinas can be a driver of growth for the U.S. even though they have faced greater COVID-19-related setbacks. Go deeper (1 min. read) Axios on facebook Axios on twitter Axios on linkedin Axios on email Andrew Freedman Andrew Freedman , author of Axios Generate Updated 23 mins ago - Energy & Environment Tiny island nation takes climate change to The Hague Illustration of Port Vila, the capital of Vanuatu, with a microphone pointed towards it. Illustration: Lindsey Bailey/Axios The small Pacific island country of Vanuatu is poised to gain UN approval to seek an unprecedented legal opinion on what obligation countries have to combat climate change. Why it matters: Vanuatu's resolution would give the International Court of Justice (ICJ) in The Hague a chance to weigh in on potential consequences for nations that have caused much of global warming to date. Go deeper (2 min. read) Axios on facebook Axios on twitter Axios on linkedin Axios on email Courtenay Brown Courtenay Brown 1 hour ago - Economy & Business How the banking crisis could ripple through the economy Illustration of dollar bill stacks as a line of dominos. Illustration: Aïda Amer/Axios The U.S. banking system appears to be stabilized, for now, following extraordinary government actions to head off an all-out disaster after Silicon Valley Bank's failure. Yes, but: Wall Street economists and the Fed increasingly expect fallout from that collapse to linger in the months ahead, as regional and community banks ease up on lending activity. Why it matters: The economy runs on credit and loans. Should that activity slow or grind to a halt, there would be domino effects for hiring, spending and more — particularly if banks that are the most active lenders to small and midsize businesses are forced to retrench. The backdrop: Before the banking turmoil in recent weeks got underway, banks were already tightening up on lending. A quarterly survey of loan officers by the Fed showed that a net 40% reported tighter standards for loans to businesses in the final quarter of last year. Excluding the onset of the pandemic, that's the highest share to say so since 2009. The big picture: Banks face the risk of a two-pronged problem. Unfortunately, those are assets and liabilities. That is to say, credit conditions could tighten as people pull bank deposits (which are liabilities) and because of further losses on loans and securities (assets). State of play: Total bank deposits have been falling for nearly a year — to $17.6 trillion last week from $18.1 trillion last April — as Americans shift money out of bank accounts that pay little interest to higher-yielding savings vehicles, like Treasury bills and money market mutual funds. If that accelerates due to fears for deposit safety, it would cause affected banks to shrink the asset side of their balance sheet, mostly by making fewer loans. A shift away from smaller banks toward bigger ones leaves overall numbers steady, but would still restrict the availability of credit for the kinds of smaller business and real estate investors that rely on community banks. What they're saying: "Banks might basically say, 'we can't make as many loans' because they fear they won't be liquid enough to pay out the deposits," says Kathy Bostjancic, chief economist at Nationwide. Banks might also worry that after the banking crisis, regulators and supervisors may scrutinize them even more closely, making them more wary of expanding their balance sheets. Between the lines: Businesses would have a more difficult time accessing the cash necessary to hire more workers or spend on new equipment needed to expand the business. Consumers, too, might have a more difficult time getting a loan. On a large enough scale, that would ripple out to the labor market and consumer demand, and in turn may help cool price gains. The bottom line: No one knows, however, how big of a credit crunch is ahead and to what extent it will crimp economic activity. Economists at Goldman Sachs say that tighter lending would result in a drag of as much as a half-percentage point on U.S. growth over his year. But economists there warn the drag could be greater, "particularly in the event of further bank failures, significant regulatory changes, or continued deposit outflows that increase the sensitivity of lending to bank capital." Axios on facebook Axios on twitter Axios on linkedin Axios on email News worthy of your time. Download the app About About Axios Advertise with us Careers Events Axios on HBO Axios HQ Privacy and terms Online tracking choices Do not sell my personal information Contact us Subscribe Axios newsletters Axios Pro Axios app Axios podcasts Courses Earn Axios rewards Axios Homepage