Americans Understand Free Enterprise — When It Is Defined
As November approaches, the midterm elections are emerging as a referendum — nationally and in Michigan — on America’s economic future and the systems we rely upon. Recent research from Gallup lends new insight into how Americans feel about economic systems: free enterprise, capitalism and socialism.
Results underscore why it’s so important to foster knowledge of free markets and their foundational value.
In the new research, Gallup asked respondents what they liked and disliked about each of the three economic systems. Just last year, Gallup found that 81% of Americans saw free enterprise positively, while 54% and 39% viewed capitalism and socialism, respectively, in a favorable light.
A follow-up Gallup report released in August explored the themes underlying those sentiments. Asked what’s good and bad about each system, respondents often mentioned advancement, innovation and market choice as high points of capitalism and free enterprise.
Most-cited dislikes about socialism included inefficiency, government control and disincentives for work. A significant share of people didn’t list anything positive about socialism.
But the Gallup findings weren’t all upbeat for open markets. Perceptions of greed and corporate power dinged free enterprise and capitalism. People associated an unequal distribution of wealth with capitalism; they saw exploitation as a tie-in to free enterprise.
Meanwhile, in a separate Gallup survey, 43% of Americans voiced a positive view of socialism. That’s the first time since 2010 the number has eclipsed 39%, as the polling group noted in September. (Capitalism and free enterprise still top socialism in public sentiment. All but 5% of those surveyed had a positive view of small business.)
These patterns underscore why Northwood must continue championing free enterprise and its ability to promote prosperity for everyone.
Among the findings from the Gallup report in August:
Nuanced views of capitalism and free enterprise
Free enterprise has a distinct reputation. Forty percent of respondents associated the system with economic freedom, consumer choice and competition, while about a quarter mentioned innovation and creativity. Twenty-two percent brought up personal opportunity and advancement in connection with free enterprise. Around 4% associated it with economic equality and opportunity.
Findings also capture differences among Republicans, Democrats and independents. Speaking to free enterprise, 44% of Republicans, 39% of independents and 37% of Democrats cheered its contributions to economic freedom, competition and consumer choice.
A dimmer view of socialism
Socialism at large drew more negative responses than did free enterprise or capitalism. Asked to name a positive aspect of socialism, 30% of respondents indicated there’s nothing — the most common reply. Nearly half either rejected the question or didn’t name any benefit.
Among those who cited something positive, just more than a quarter said socialism provides a social safety net. Promotion of equality and an even distribution of wealth also came up. As Gallup wrote, responses show that those seeing socialism in a favorable light “focus less on expansive government control and more on the promise of greater economic security and fairness.”
Key takeaways
For all the lamented division in U.S. politics, the survey findings indicate shared priorities on economic values, as Gallup noted. It cited “broad support for the ideals of an open-market economy.”
But the survey also signals work ahead to strengthen how people understand free markets. Gallup found “Americans have become less positive about most of the market-oriented concepts” that the group tracks. And separate research by the Carnegie group for Northwood University reveals many cannot describe free enterprise as a concept. Forty percent of respondents to a Carnegie survey had never heard the term or couldn’t describe it.
Taken together, these data points underscore the natural appetite for free enterprise — and why it’s vitally important for supporters to champion it.
About this piece:
This piece is featured in the October 2026 edition of When Free to Choose, Northwood’s signature publication dedicated to exploring the importance of free enterprise and other tenets of The Northwood Idea. Click here to receive When Free to Choose in your inbox!