Millennials and Gen Zers may disagree on style choices, but many young people see eye to eye on the subject of capitalism: They don’t like it. A 2019 Gallup poll showed 50% of young adults favored capitalism, down from 66% in 2010. YouGov also released a poll where 64% of Gen Zers and 70% of Millennials said they’d vote for a socialist. Since ancient times, capitalism has been embedded in the world’s systems, so why is it losing ground? Michael Moe is the CEO of GSV Holdings, and he says he understands why the younger generations have lost faith in capitalism. But he believes there’s a solution: contemporary capitalism.
A solution to the downfalls of capitalism
Some critics of the rising generation say people don’t like capitalism because they don’t understand it. But Moe believes young adults understand perfectly and are looking for a better way. He said have seen disproportionate wealth going to fewer people, and they’re frustrated with the system where poor people stay poor. But this CEO doesn’t believe in eradicating capitalism, only evolving it. His solution is contemporary capitalism – combining purpose and profits.
A contemporary capitalist business ideally would have the ambition of a for-profit with the heart of a not-for-profit. Moe believes our system is already moving toward rewarding these types of companies. Many young people value being conscious consumers: They search for brands and businesses that match their values and benefit others. Employees apply for jobs with missions that they believe in. And businesses are noticing the trends. Industries are making zero-carbon pledges, and banks are enforcing environment initiatives. Even the online education platform Coursera changed to a B Corp before it went public and now has “high standards for social and environmental performance,” according to TechCrunch. Do these instances indicate a bright future for capitalism? Or is it losing support too quickly?