U.S. Treasury Secretary Scott Bessent is making a direct connection between the skepticism young Americans feel toward capitalism and their absence from the stock market, positing that views on socialism are directly tied to whether individuals hold stock investments.
During a broad interview conducted on the sidelines of the Treasury Department’s “Trump Accounts” summit in Washington, Bessent was questioned about a Gallup poll revealing that 39% of Americans hold a positive view of socialism, compared to just over half who view capitalism favorably. He promptly linked that finding to a separate figure: approximately 38% of U.S. households have no equity investments.
“I believe that aligns somewhat with the 38% of American households having no exposure to equities,” Bessent stated, indicating that individuals who do not engage with the stock market are more prone to dissatisfaction with the current economic system. He described the administration’s initiative to create investment accounts for children as a strategy to “mint a new generation of capitalists” by providing youth with a direct share in the growth of corporate America.
A Philadelphia Fed report from September 2025 indicated that around 42% of American households do not invest in the stock market.
Trump Accounts as an antidote
The newly introduced “Trump Accounts” program, a federally backed investment plan for children, is central to Bessent’s strategy to alter these statistics. He explained that the accounts are intended to direct contributions into a broad-based index fund, aiming to introduce millions of future adults to the long-term compounding potential of equity markets.
Bessent portrayed the initiative as a component of President Donald Trump’s “enduring legacy,” which also includes peace agreements, trade deals, and tax reductions. He noted that children born from 2025 to 2028 would benefit from 18 years of compounding growth in their Trump Accounts, asserting that this extended exposure would build both wealth and financial understanding for the coming generation. “This is a real-time learning experiment,” he remarked. “We aim to give everyone a stake in the great innovation and economic engine of our country, and I predict that if we conduct this survey again in five or ten years, the results will be dramatically different.”
Markets, policy, and the political stakes
Bessent’s remarks were made as the S&P 500 index, which he noted is achieving new highs “every day,” continues a streak of three consecutive years of double-digit gains. He maintained that these returns are the result of “good policies for sound economic growth,” such as deregulation, tax reforms, and a pro-investment climate he says has drawn “trillions of dollars of investment” back to the U.S.
He concurrently recognized that markets are volatile and that historical gains do not assure future profits, stressing that “events and policy” will shape what happens next. Nonetheless, the administration is evidently wagering that if more young Americans have market investments, they will perceive volatility as an inherent aspect of a system that works to their advantage, rather than as evidence of capitalism’s failure.
It is important to note that correlation does not imply causation, and research indicates that young adults can theoretically support “free enterprise” while simultaneously growing disillusioned with capitalism and large corporations, implying their opinions are based on the system’s practical outcomes, not merely stock ownership. Stated differently, an individual might not invest due to low wages, high debt, and unaffordable housing, and these structural issues could be what drives them to consider alternatives to the current system.
Furthermore, even when “America owns stocks,” the profits are intensely concentrated. Therefore, a greater number of accounts does not guarantee widespread advantage, as wealthier, older households possess the lion’s share of stock value, while lower-income and younger families own significantly less in monetary terms. In essence, providing each child with a small index fund stake does not alter who ultimately controls corporate America or reaps most of the rewards. Simultaneously, the contributions from billionaires to the Trump Accounts signify an extraordinary act of philanthropy.
Additionally, the meaning of “socialism” is often ambiguous. Surveys show young Americans frequently use the term to express a desire for more robust safety nets, public healthcare, and constraints on corporate influence, while still supporting free enterprise and entrepreneurship. The core issue may not be a deficit of ideological dedication to capitalism, but rather obstacles to participation: modest incomes, student debt, insufficient employer retirement plans, and minimal emergency savings. When people live paycheck to paycheck, they may logically steer clear of stock market risks, and their doubt about the system originates from a sense of exclusion, not a lack of understanding about compounding returns. For example, reports suggest Generation Z is turning to prediction markets like Polymarket and Kalshi, and showing enthusiasm for crypto, because they feel shut out of the traditional stock market.
For Bessent, the near-perfect match between the percentage of Americans with positive views of socialism and those without stock investments is not just a statistical fluke. He sees it as a political and economic challenge that the Trump Accounts are meant to address—by converting non-investors into shareholders and, as he phrased it, transforming a generation that flirts with socialism into one that owns a piece of capitalism. Whether encouraging more young Americans to invest in index funds can sufficiently address structural issues like wage stagnation, high rental costs, or concentrated corporate power remains an open question.
For this story, journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing.