Just 53% of American adults believe capitalism is better than socialism.

A Rasmussen Reports national telephone survey found that 20% of Americans say socialism is better. 27% are not sure which is better.

Adults under age 30 are evenly divided: 37% prefer capitalism, 33% socialism, and 30% are undecided. But take note that 66% of young Americans do not prefer capitalism. Thirty-somethings are more supportive of capitalism, 49% for capitalism and 26% for socialism. Adults over 40 strongly favor capitalism, and just 13% of those older Americans believe socialism is better.

Investors by a 5-to-1 margin favor capitalism - not a surprise coming from the group of key beneficiaries and a solid minority (The American Association of Individual Investors - AAII, has 170,000 estimated members). For those who do not invest, 40% say capitalism is better while 25% prefer socialism.

Republicans favor capitalism by an 11-to-1 margin. Democrats are more closely divided: Just 39% say capitalism is better while 30% prefer socialism. And for those not affiliated with either major political party, 48% say capitalism is best, and 21% opt for socialism.

Rasmussen Reports did not define either capitalism or socialism in the questions posed in the survey.

It is interesting to compare the new results to an earlier survey in which 70% of Americans prefer a free-market economy. The fact that a “free-market economy” attracts substantially more support than “capitalism” may suggest some skepticism about whether capitalism in the United States today relies on free markets.

Other survey data shows two-out-of-three Americans believe big government and big business work together in ways that hurt both consumers and investors.

Fifteen percent (15%) of Americans prefer a government-managed economy, similar to the 20% support for socialism. But just 14% believe the federal government would do a better job running auto companies, and even fewer believe government would do a better job running financial firms.

Only seven percent (7%) of Americans today share the elitist views of the Political Class.

Source: Rasmussen Reports National Telephone Survey