by Mike Smith Since our earliest days as a nation, America has been the hotbed of entrepreneurship in the world — a place where hard work and ambition can turn a dream into economic success. But recent polling data, and the unexpected popularity of two presidential candidates, suggests many Americans have lost confidence in significant parts of our economic system. For example, in 1979, according to polling done by the Gallup organization, a strong majority of Americans, some 60 percent, had either a great deal or quite a lot of confidence in the banking industry. In 2015, after the housing and banking crisis and the collapse of huge financial institutions like Lehman Brothers and Bear Sterns, that number had shrunk to only 28 percent.
And according to a recent poll, also conducted by Gallup, those between the ages of 18 and 29, view socialism nearly as positively as they do capitalism.
So what is driving this loss of confidence with our financial institutions or with capitalism? The answer is the Great Recession of 2008 during which many Americans felt that politicians and leaders in the industrial and financial sectors failed them.
By most economic indicators we have recovered from the 2008 recession. However, the psychological affect of that recession lingers. Even today, too many Americans do not feel the benefits of the positive economic statistics that are being reported. There is continued unease about whether this economic recovery is real, or if it will last. They are seeing, and perhaps experiencing, slow wage growth that isn’t necessarily keeping pace with increases in everyday living expenses and taxes. They see job opportunities slipping away, particularly in manufacturing as more and more of these jobs move off-shore; and with the introduction of more advanced technology, worker productivity is increasing, but at the expense of more jobs.
As a consequence, Americans are scared, angry and frustrated. Scared that their situation will continue to deteriorate. Angry at the politicians, and business and financial leaders they feel are responsible. And frustrated that those leaders have done little to ease their economic angst or improve their economic condition.
Americans believe no one is listening to them — and they may be right. Many public and private sector elites are far removed from the economic challenges facing most working families. Everyday Americans are largely disconnected from a political system that is dominated by wealthy interests bent on protecting the status quo. They feel — and the economic statistics support the notion — that the rich are getting richer, the poor are getting poorer and the middle class is contracting.
All of this leads to unrest, which is manifesting itself into a building rebellion against the political and financial systems. This unrest might be similar to what we experienced in the 1960s; but this time instead of marching against an unpopular war or fighting for civil rights, our national turmoil is being driven by a political and economic system many Americans have concluded is stacked against them. Left unattended, this anger and frustration will only grow more intense — and more volatile.
This political landscape provides fertile ground for candidates such as Sen. Bernie Sanders and Donald Trump. Both have touched voters across the political spectrum with their promises to shake things up, do things differently, and not defend or protect the status quo. Whether their proposals will make economic conditions better is beside the point. In fact, there is reason to believe they could make matters worse. For example, Bernie Sanders’ proposals are said to double the national debt. If Donald Trump is elected president and forces Apple to bring its manufacturing jobs back to the United States — as he states he will do — it is likely Apple will take drastic steps to protect its interests that could have serious consequences for our economy.
A large segment of the American population is craving something different: A return to the economic security they once felt they had before the Great Recession. And they will support radical, perhaps even impractical solutions to re-establish that economic hope and opportunity.
They want the American Dream back and they want it now.
Mike Smith was the secretary of administration and secretary of human services under former Gov. Jim Douglas. He is the host of the radio program, “Open Mike with Mike Smith.” He is also a political analyst for WCAX-TV and WVMT radio and is a regular contributor to The Times Argus, Rutland Herald and Vermont Business Magazine.