Six Nation Survey Finds Little Enthusiasm for Free Market Capitalism in Western Europe or the United States

A new Financial Times/Harris Poll in the United States and the five largest European countries does not make for cheerful reading. A broad overview of the results suggest that there is little enthusiasm for free-market capitalism and that the prospect of some "third way" (a hot topic in the early days of Tony Blair’s Labor government), if only someone could define it clearly, would appeal to many people in the largest Western Democracies. While the mood and attitudes vary from country to country, it is a reasonable inference from the data that free-market capitalism, globalization (or socialism) does not have broad appeal.

These are some of the results of a Financial Times/Harris Poll conducted online by Harris Interactive® among a total of 6,473 adults aged 16 to 64 within France; Germany, Great Britain, Spain, the United States, and adults aged 18 to 64 in Italy, between September 6 and 17, 2007.

Less than 50 percent of adults in all six countries say that a "free-market capitalist economy" is the "best economic system." However, in three countries almost half believe it is: the United States (49%), Spain (49%) and Germany (48%).

Further evidence that the so-called "Anglo-American" or "Anglo-Saxon" economic model does not have widespread appeal is that only relatively small minorities of the people in the five European countries (except for a larger 38% in Italy) think that "Europe’s economy should be more like that of the United States".

One of the constraints on free-market capitalism is the power of trade unions. Most people in Britain, Spain, and Germany believe that trade unions "have an important role in today’s work environment" a view shared by over 40 percent in the U.S., Italy, and France. It is noteworthy that support for trade unions is weakest (but still strong) in France and Italy, where unions probably have more power than in the other four countries.

Most people doubt the power of national government to control multi-national companies. In the five European countries, less than 20 percent of the public think their governments have more power than multi-nationals. Even in the U.S., only 30 percent believe this.

Only rather small minorities (from 13% in Italy to 36% in Germany) of the public are optimistic about the future of their own country’s economics. And, only minorities (from 18% in Britain to 36% in Germany) are optimistic about the future of the "European economy as a whole". Pessimism about their own countries’ economies is highest in Italy (69%), France (58%) and Spain (47%) and lowest in Britain (31%) and Germany (33%). In every country there are more economic pessimists than optimists, including the U.S. (36% compared to 29%).

However, and perhaps paradoxically, more people in each of the six counties believe that the European business environment for companies based in their own countries is good rather than bad. However, substantial majorities (from 60% in Britain to 75% in Spain) are not confident that the European Central Bank (ECB) fulfills its primary roles controlling inflation and promoting economic growth.

One reason for economic pessimism in Europe is that only minorities of the public (from 25% in Britain and France to 42% in Spain and 44% n Germany) believe that "European economics can compete effectively" against Asian countries such as China and India.

"Now we would like to ask you some questions on [Great Britain’s, France’s, Germany’s, Italy’s, Spain’s, United States’] economy. Do you think a free-market, capitalist economy (an economic system in which prices and wages are determined by unrestricted competition between businesses, with limited government regulation or fear of monopolies) is the best economic system or not?"

Base: All EU adults in five countries and US adults

Note: Percentages may not add up to 100% due to rounding

"Do you think Europe’s economy should be more like that of the United States?"

Base: All EU adults in five countries and US adults

Note: Percentages may not add up to 100% due to rounding

"Do you think that trade unions have an important role in today’s work environment, or not?"

Base: All EU adults in five countries and US adults

Note: Percentages may not add up to 100% due to rounding

"Do you think that multi-national companies have more, less or the same amount of power as the [British, French, Italian, Spanish, German, United States] government?"

Base: All EU adults in five countries and US adults

Note: Percentages may not add up to 100% due to rounding

"Are you optimistic, pessimistic or neutral about the future of [Britain’s, France’s, Italy’s, Spain’s, Germany’s, The US] economy?"

Base: All EU adults in five countries and US adults

Note: Percentages may not add up to 100% due to rounding

"Are you optimistic, pessimistic or neutral about the future of the European economy as a whole?"

Base: All EU adults in five countries and US adults

Note: Percentages may not add up to 100% due to rounding

"How good or bad an environment is Europe for [British, French, Italian, Spanish, German, American] companies to do business in?"

Base: All EU adults in five countries and US adults

Note: Percentages may not add up to 100% due to rounding

"How confident are you that the European Central Bank fulfills its primary roles of keeping the prices of goods and services stable and promoting economic growth within the entire EU area?"

Base: All EU adults in five countries

Note: Percentages may not add up to 100% due to rounding

"Do you think the European economy can compete effectively against other rising economies in Asia, such as China and India?"

Base: All EU adults in five countries and US adults

Note: Percentages may not add up to 100% due to rounding

This FT/Harris Poll was conducted online by Harris Interactive among a total of 6,473 adults (aged 16-64) within France, Germany, Great Britain, Spain, and the United States and adults (aged 18-64) in Italy between 6 and 17 September 2007. Figures for age, sex, education, region and Internet usage were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents’ propensity to be online.

All sample surveys and polls, whether or not they use probability sampling, are subject to multiple sources of error which are most often not possible to quantify or estimate, including sampling error, coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments. Therefore, Harris Interactive avoids the words "margin of error" as they are misleading. All that can be calculated are different possible sampling errors with different probabilities for pure, unweighted, random samples with 100% response rates. These are only theoretical because no published polls come close to this ideal.

Respondents for this survey were selected from among those who have agreed to participate in Harris Interactive surveys. The data have been weighted to reflect the composition of the adult populations of the respective countries. Because the sample is based on those who agreed to participate in the Harris Interactive panel, no estimates of theoretical sampling error can be calculated.

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