How are you feeling about capitalism?

Summary

Podcast Summary: Marketplace Morning Report - "How are you feeling about capitalism?"

Date: September 9, 2025
Host: David Brancaccio
Episode Duration: ~10 minutes

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Episode Overview

This Marketplace Morning Report episode, hosted by David Brancaccio, explores a pronounced shift in American attitudes toward capitalism, as revealed by a new Gallup poll. The discussion weaves in current economic events—ranging from labor market revisions to Federal Reserve policy discussions and a historic mining merger—all providing context for broader questions about the public’s confidence in the U.S. economic system. The episode also hints at political influences on economic data and looks ahead to central bank decisions amid lingering inflation.

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Key Discussion Points & Insights

1. Declining Support for Capitalism in the U.S.

[00:46–02:21]

• Gallup Poll Findings: Savannah Peters reports a new Gallup poll showing only 54% of Americans now view capitalism positively, down from 60% in 2020.
• Narrowing Gap with Socialism: The positive perception gap between capitalism and socialism is the smallest ever recorded, especially among younger Americans and Democrats.
• Unclear Definitions: Gallup does not provide respondents with set definitions for "capitalism" or "socialism," so answers may reflect varied understandings shaped by political rhetoric.
• Notable Insight:
  "They maybe have a mixed understanding would be my impression, and I think that it's shaped by how these terms get bandied about in politics."
  — Sarah Damasky, Penn State [01:40]
• Takeaway: The shift indicates a broader discontent with the economic status quo.

2. Politicization and Revisions in Labor Market Data

[02:21–03:50]

• BLS Data Revision: After President Trump's firing of the Bureau of Labor Statistics head, an upcoming annual jobs revision is anticipated to revise job creation numbers down significantly, possibly by up to 900,000 jobs for April 2024–March 2025 (per Oxford Economics).
• Context:
  "This could be a big revision... The new lower numbers could be more fuel for a Federal Reserve interest rate cut later this month."
  — Nancy Marshall Genzer [02:43]
• Political Climate: Brancaccio notes the unusual politicization of this data set, increasing scrutiny on the government's economic reporting.

3. Major Mining Industry Merger

[03:50–04:36]

• Merger Details: Anglo American and Teck Resources announce the largest mining merger in a decade, forming "Anglo Teck," headquartered in Canada and listed in London.
• Industry Impact:
  "The combined firm will have a market value of $53 billion, about the size of a BMW or a Volkswagen."
  — David Brancaccio [03:50]
• Big Picture: Highlights the ongoing scale and influence of resource extraction industries.

4. Upcoming Economic Data and Federal Reserve Policy

[05:07–07:44]

• Inflation Data Watch: Wholesale and consumer inflation data for August arrives ahead of a closely awaited Federal Reserve interest rate decision.
• Economic Slowdown:
  "Right now, a lot of signs are pointing to an economy that is slowing."
  — Savannah Peters [05:35]
• Job Market & Unemployment:
  "The U.S. has been kind of adding fewer jobs. The unemployment rate is historically very low still, but it has been ticking up over a number of years."
  — Savannah Peters [05:48]
• Fed’s Dilemma: The Fed faces a dual mandate: supporting employment while containing inflation.
  "That mandate is to manage not just the job market but also inflation, which, thanks in part to tariffs, remains hotter than the Fed's target of 2%."
  — Stephen Cicchetti [06:07]
• Sticky Inflation: July’s consumer price index was up 2.7%. Economists say only a large spike in upcoming data would stop an expected rate cut.
• Memorable Exchange:
  "It's not the 1970s, but it does feel like stagflation—I’ll use a technical phrase."
  — Patrick Harker [07:16]
  "I couldn't find 'stagflationy' in the econ textbooks."
  — Daniel Ackerman [07:23]
• Tradeoffs: Lowering rates may stimulate hiring, but could worsen inflation; raising them fights prices but slows jobs.

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Notable Quotes & Memorable Moments

• On the public’s understanding of capitalism/socialism:
  "They maybe have a mixed understanding would be my impression..."
  — Sarah Damasky [01:40]
• On the scale of the mining merger:
  "The combined firm will have a market value of $53 billion, about the size of a BMW or a Volkswagen."
  — David Brancaccio [03:50]
• On stagflation concerns:
  "It's not the 1970s, but it does feel like stagflation..."
  — Patrick Harker [07:16]
  "I couldn't find 'stagflationy' in the econ textbooks."
  — Daniel Ackerman [07:23]

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Important Timestamps

| Time | Segment / Highlight | |-----------|---------------------------------------------------------------------| | 00:46 | Introduction of Gallup poll on declining support for capitalism | | 01:31 | Noting the tightening capitalism/socialism favorability gap | | 02:43 | Preview of anticipated major labor market data revision | | 03:50 | Report on the Anglo American–Teck Resources mining merger | | 05:07 | Discussion of upcoming inflation data and expected Fed action | | 06:07 | Fed's dual mandate: juggling jobs and inflation | | 07:16–07:23| "Stagflationy" banter between Harker and Ackerman |

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Summary Takeaways

• Americans’ support for capitalism is at a modern low, signaling dissatisfaction with current economic realities, especially among young people and Democrats.
• Job market data revisions and high inflation challenge policymakers—prompting heated political debates and putting pressure on the Federal Reserve’s next moves.
• Major business moves, such as the historic mining merger, underscore the ongoing scale and transformation in global industries.
• Economists and experts highlight the complexity of today’s economy: slowing hiring, persistent inflation, and the inherent contradictions in current policy options.

For anyone seeking a quick, insightful update on today's economic pulse—including the mood around capitalism—this episode delivers clear data, analysis, and expert commentary.

Transcript

[David Brancaccio]

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[Various Economists (e.g., Daniel Ackerman, Stephen Cicchetti, Celeste Carruthers, Patrick Harker, Vivi Chari)]

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[David Brancaccio]

How's that capitalism working for you? Support is slipping for our profit driven way of life. I'm David Brancaccio in Los Angeles. American enthusiasm for capitalism is slipping. That's the headline from a new Gallup poll. Marketplace's Savannah Peters reports Gallup has been.

[Savannah Peters]

Asking Americans how they feel about capitalism and socialism since 2010. Jeffrey Jones runs that survey.

[David Brancaccio]

The debate has come up certainly in the last few presidential elections about the economic system that the US has and.

[Savannah Peters]

Whether it's serving ordinary Americans. In this latest survey, just 54% of respondents said they view capitalism positively, down from 60% the last time Gallup asked in 2020.

[David Brancaccio]

And now the gap that we see in terms of positive ratings between capitalism and socialism is the smallest that we've had to date.

[Savannah Peters]

That gap is especially small among younger people and Democrats. It's worth noting Gallup doesn't brief people on a shared definition of capitalism or socialism or ask them about their own understanding. Sarah Damaski teaches those concepts to undergrads at Penn State. They maybe have a mixed understanding would be my impression, and I think that it's shaped by how these terms get bandied about in politics. Regardless, Damasky says capitalism's image problem tells us something important that fewer Americans feel the economic status quo is working in their favor. I'm Savannah Peters for Marketplace.

[David Brancaccio]

After President Trump's firing of the head of the Bureau of Labor Statistics that followed job creation numbers that were revised downward, there's a new big revision on the way later this morning. It's an annual thing, but what's not normal is the politicized environment that will surround this data set, which is expected to show the job market is worse than we thought. Marketplace's Nancy Marshall Genzer has that.

[Nancy Marshall Genzer]

This new BLS report looks at how many jobs were created from April 2024 through March of 2025. Today's revision accounts for businesses that have just opened their doors or closed. It's an effort to update past data on jobs that it gets from surveys of businesses, comprehensive information from state unemployment insurance, tax records that almost all employers are required to file. This could be a big revision. Oxford Economics estimates that up to 900,000 fewer jobs were created from April 2024 through March 2025 than the BLS initially estimated. The new lower numbers could be more fuel for a Federal Reserve interest rate cut later this month. The Fed lowers rates to stimulate the economy, making it easier for businesses to borrow money and create jobs. Of factors could be behind the slowing labor market. The Fed hasn't cut rates since December of last year. The higher borrowing costs could be contributing to slower job creation. There's also a lot of uncertainty over President Trump's tariffs. I'm Nancy Marshall Genser for Marketplace.

[David Brancaccio]

A reminder this morning that digging resources out of holes in the ground or scooping them from hills is a massive business. Anglo American and Tech Resources, two vast extractors of natural resources, are combining in the the biggest mining merger in more than a decade. The combo will be headquartered in Canada, with the new stock called Anglo Tech, to be listed in London. There's money and then there are hills and holes. The combined firm will have a market value of $53 billion, about the size of a BMW or a Volkswagen.

[Grainger Commercial Narrator]

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[David Brancaccio]

In the coming days, we'll get more rounds of data on inflation before central banks meet on interest rates starting one week from now. Wholesale inflation for what month here for August comes first, then the Consumer Price Index the day after. The expectation is the Federal Reserve will lower interest rates, but the new data could shape how much and when. Daniel Ackerman has that.

[Various Economists (e.g., Daniel Ackerman, Stephen Cicchetti, Celeste Carruthers, Patrick Harker, Vivi Chari)]

At this point, the market has pretty much priced in a modest rate cut next week, because when you look around.

[Savannah Peters]

Right now, a lot of signs are pointing to an economy that is slowing.

[Various Economists (e.g., Daniel Ackerman, Stephen Cicchetti, Celeste Carruthers, Patrick Harker, Vivi Chari)]

Celeste Carruthers is a professor of economics at the University of Tennessee. She says one of those slowdown signs is hanging over the job market.

[Savannah Peters]

The US has been kind of adding fewer jobs. The unemployment rate is historically very low still, but it has been ticking up over a number of years.

[Various Economists (e.g., Daniel Ackerman, Stephen Cicchetti, Celeste Carruthers, Patrick Harker, Vivi Chari)]

A rate cut could help reverse those trends. But remember, says Stephen Cicchetti, a finance professor at Brandeis University, the Federal Reserve.

[David Brancaccio]

Have a dual mandate.

[Various Economists (e.g., Daniel Ackerman, Stephen Cicchetti, Celeste Carruthers, Patrick Harker, Vivi Chari)]

That mandate is to manage not just the job market but also inflation, which, thanks in part to tariffs, remains hotter than the Fed's target of 2%.

[David Brancaccio]

It's no mystery to anyone who does food shopping, for instance, that food prices have gone up. It's not a mystery to people who have to pay home energy prices. Electricity prices have gone up.

[Various Economists (e.g., Daniel Ackerman, Stephen Cicchetti, Celeste Carruthers, Patrick Harker, Vivi Chari)]

And even though a rate cut could push those prices even higher, Cicchetti says the Fed's concerns about the job market are beginning to outweigh its worries about inflation. The consumer price index rose at an annual rate of 2.7% in July. It would take a huge jump in the August data for the Fed to hold interest rates steady, says Vivi Chari, an economist at the University of Minnesota.

[Grainger Commercial Narrator]

They saw something like 3.54% inflation in.

[David Brancaccio]

The CPI and the PPI. That might raise alarm bells.

[Various Economists (e.g., Daniel Ackerman, Stephen Cicchetti, Celeste Carruthers, Patrick Harker, Vivi Chari)]

But he says that's unlikely and agrees that the economy is probably in line for a rate cut. That doesn't make it an easy decision for the Fed, though. Patrick Harker is former president of the Federal Reserve bank of Philadelphia, now at the Wharton School, and he sees some echoes of the past.

[David Brancaccio]

It's not the 1970s, but it does feel like stagflation. E I'll use a technical phrase.

[Various Economists (e.g., Daniel Ackerman, Stephen Cicchetti, Celeste Carruthers, Patrick Harker, Vivi Chari)]

I couldn't find stagflationy in the econ textbooks. But Harker says, like in the 1970s, there are two problems here.

[David Brancaccio]

The trends are clearly for a softening economy and for inflation to remain sticky.

[Various Economists (e.g., Daniel Ackerman, Stephen Cicchetti, Celeste Carruthers, Patrick Harker, Vivi Chari)]

Which means using interest rates to address one of those problems could make the other worse. I'm Daniel Ackerman for Marketplace.

[David Brancaccio]

Our producers are Tamar Fagan, Arianna Rosas, and Erika Soderstrom. Our senior producer is Alex Schroeder. You're listening to the Marketplace Morning report from APM American Public Media.

[Emily Hanford]

The Trump administration is making deep cuts to education research. The cancellation notices started coming when the contract is cut.

[David Brancaccio]

The study just dies.

[Emily Hanford]

It's all happening. Just as schools are trying to make use of research to improve reading instruction.

[David Brancaccio]

There would not have been a science of reading without the federal funding.

[Nancy Marshall Genzer]

It wouldn't have happened.

[Emily Hanford]

I'm Emily Hanford. On our new episode of Soul to what the Trump Cuts Mean for the Science of reading. Go to your podcast app and follow Soul to Story.