OPINION:
Market-based capitalism is better than government-driven socialism. It was an honor to interact with students at Kennesaw State University as part of the Bagwell Center for the Study of Markets and Economic Opportunity and make this case.
According to a June 2026 Cato Institute/Morning Consult poll, 53% of Gen Z hold a favorable view of socialism compared with 45% who hold a positive view of capitalism. I am an eternal optimist, so I view this as more of a marketing challenge than a full-scale disaster of critical thinking.
Clearly, many young people believe the current system is “rigged” to favor the elites. They have concerns over high costs, soaring student loan debt and the lack of housing options. They feel that their piece of the American dream is slipping away.
Ironically, some of the younger people who voted for President Trump two years ago because of their frustrations over these same issues are now considering democratic socialist candidates. They are upset and are looking for leaders who will challenge the status quo. Unfortunately, they believe that capitalism is to blame for their woes.
On campus, I argue that the answer is not to give the government more power on the path to socialism. It already has too much control over our lives, and that is a big part of our problems.
Here are three issues where I believe this is true: housing, healthcare and higher education.
Federal, state and local governments have their fingerprints all over housing issues. To build new homes, lease apartments or even rent out your home on Airbnb, there are permits, land-use restrictions, regulations, zoning and other issues to consider.
On top of that, high property taxes create barriers for first-time homebuyers and impose needless burdens on retirees. Plus, surging federal spending during the COVID-19 emergency drove up government debt and inflation.
That pushed up mortgage rates and made purchasing impossible for many Americans. Higher rates also made it less likely that existing homeowners would sell and move into larger houses.
Simple supply and demand drive up home prices. I showed the students a candy bar. If I had enough for the entire class, the price would be fairly low. If I had only one and the class was hungry, I could sell it for a very high price.
Getting the government out of the way in housing and bringing government spending and debt under control would help lower the cost of purchasing a home.
In New York City, democratic socialists — including the mayor — are pushing for rent and price controls. That also is a bad idea. Not only has it failed to work in other parts of the world, but it has also been a disaster here in the United States.
In 1971, President Nixon instituted a 90-day freeze on all wages and prices in an effort to stop inflation. Nixon simultaneously suspended the dollar’s convertibility to gold and imposed a 10% import surcharge.
At first, there was a short-term drop in the inflation rate and price increases slowed down. Yet because businesses could not pass on rising costs of materials, many reduced or even stopped shipping goods to high-demand areas. There were gas lines and shortages in steel, meat and poultry.
The program ended in 1974 as inflation peaked above 12% by year’s end. It was a clear sign that not only can the government not make things better, but it can also make them worse. Thankfully, further efforts to control the market were set back years.
Healthcare is another example of how too much government control is already driving up prices. The system is full of mandates, regulations, subsidies and third-party payers. Consumers know very little about the real costs of medical procedures and visits.
By contrast, the typical American has a cellphone and knows all about their plan’s costs. If we can do it for our smartphones, it is even more important to let the market work for healthcare.
Higher education is another area where government involvement has driven up costs. Since 1978, federal student loan assistance and total debt have dramatically outpaced general inflation, driven by major expansions that made loans available regardless of income or need.
In turn, tuition at colleges and universities rose by more than three times the rate of inflation.
So, more government assistance, which is what you get with socialism, drove up the cost of college. A return to true market principles would lead to more reasonable tuition costs. Former Indiana Gov. Mitch Daniels proved this while serving as president of Purdue University.
We must help young people understand that the problems with the “rigged” system stem from having too much government involvement (the path to socialism) and not enough market involvement (true capitalism).
We have to share the truth with them, one student at a time.
• Scott Walker is a columnist for The Washington Times. He was the 45th governor of Wisconsin and launched a bid for the 2016 Republican presidential nomination. He lives in Milwaukee and is the proud owner of a 2003 Harley-Davidson Road King. He can be reached at swalker@washingtontimes.com.
Follow the author
Please read our comment policy before commenting.