Posted originally on Mar 3, 2025 by Martin Armstrong 

Socialism has become a trendy topic in the US in recent years. Progressive politicians paint it as a utopia where everyone is treated equally and thrives under the protections of big government. A new Pew Research poll found that while most view capitalism favorably (57%), around 36% of Americans have a positive view of socialism.

Naturally, Democrats are more likely to see socialism as a positive, but this trend has declined in recent years from 65% in 2019 to 57% in 2025. Yet, Democrats are also less content with capitalism, with 46% currently in favor of the system compared to 55% in 2019.

These people have not studied history nor have they lived under a socialist regime if we dismiss the last four years. They don’t realize that socialism always fails because it assumes that bureaucrats are somehow more efficient than the free market. As Maggie Thatcher once said, “Socialism fails when you run out of other people’s money.” There is not a single example in history of a socialistic society succeeding. It historically ALWAYS fails because it suffocates the free market. Government enjoys authoritarian control over all basic necessities but they are unable to execute their programs for more than a few years as they run out of funds.

There is no incentive for businesses to grow and flourish. The smart money immediately flees such situations. You cannot tax the people into oblivion after implementing policies that make everyone equally poor. The government cannot replace the free market’s ability to allocate resources efficiently. When bureaucrats take control, they set prices arbitrarily, create artificial incentives, and distort the natural supply-and-demand cycle.

The only people who succeed in such a system are the ruling elite who enjoy power and wealth created by corruption. The more the government tries to control the economy, the more freedom it must take away to enforce its policies. This is why every socialist system ultimately descends into authoritarianism. History proves this time and time again, yet people continue to believe that “this time will be different.”