The Real Reason Socialism Is Winning: America's Ownership Crisis

The Growing Threat of Socialist Appeal

With each election cycle, socialism's popularity in America grows louder and more persistent. From Zohran Mamdani's mayoralty in a major city to Bernie Sanders-backed candidates like Abdul El-Sayed and Francesca Hong, the Democratic Socialists of America are reshaping political discourse. But what does this mean for American values? Why is socialism becoming attractive to so many voters?

"Socialism is gaining ground because fewer Americans are homeowners and stockholders, creating a perfect opening for DSA leaders like Zohran Mamdani."

While some claim socialist movements have peaked, I see the opposite: a deepening trend of voter disaffection with the current economic system. And it's not about ideology—it's about personal stakes.

The Decline in American Ownership

The numbers tell a troubling story. Our homeownership rate sits at just 65%, down from its peak of 69.2% in 2004 and below the 25-year average. Among Americans under 35, it has fallen to only 35.2%. That means nearly two-thirds of young adults are being priced out of one of the most reliable paths to financial stability.

And it's not just housing. Consider stock ownership: 62% of Americans own stock—but that number masks a deeper divide. Only 28% of households earning under $50,000 own any stocks at all. For those with only a high school education or less, it's 42%, and for 18 to 29-year-olds, it's 44%.

This isn't just about wealth inequality—it's about identity. When people don't have skin in the game, they are more likely to believe that government control can fix systemic issues. But we've seen what happens when governments take ownership—inefficiency, stagnation, and decline.

Why Socialist Policies Are Selling

So why do policies like rent freezes or government stakes in AI companies resonate with voters? Because they offer a sense of shared ownership. They promise that the fruits of economic growth can be shared, even if people aren't actually participating in ownership.

The reality is more complex. A rent freeze may keep someone in their apartment, but it also discourages new construction and degrades existing buildings. Similarly, government stakes in AI firms flood IRS coffers but don't give workers a real stake in success. These policies are band-aids on symptoms—without addressing the root cause of declining ownership.

In cities like New York, where housing costs are astronomical, rent freezes are presented as solutions—but they do more harm than good. They reduce incentives for property owners to maintain quality, discourage new housing development, and ultimately leave tenants worse off long-term. These policies don't solve the housing crisis—they compound it.

A Path Forward: Rebuilding Ownership

So what's the real answer? Not more socialist rhetoric—but real ownership opportunities. We need to make homeownership accessible again, and we need to ensure that workers can participate in the wealth they help create. This isn't about charity or government redistribution—it's about aligning incentives.

Businesses should be incentivized to promote housing growth. Cities need to streamline building approvals and eliminate red tape that drives up construction costs. Companies could partner with communities by offering matched savings programs, closing-cost assistance, and financial coaching for first-time buyers.

We also need to broaden stock ownership beyond the elite. Broad-based equity compensation—employee stock ownership plans, profit-sharing, automatic retirement enrollment—can turn workers into partners in economic growth. If we tie these investments to high-growth sectors like AI or clean energy, we give people meaningful stakes in the future.

Reimagining Urban Spaces

Another overlooked opportunity lies in urban development. As AI threatens office jobs and downtown buildings sit empty, we can repurpose commercial spaces into residential units. This approach delivers a double win: it creates more housing while reducing embodied carbon emissions. Building reuse is an environmentally responsible strategy that also addresses housing shortages.

Adaptive reuse isn't just smart policy—it's essential to keeping cities vibrant and sustainable. When developers are allowed to convert unused commercial buildings into homes, they're investing in neighborhoods, not just profits. And the people who live there become part of a community with a real stake in its success.

Building Sustainable Capitalism

Capitalism doesn't need to be about massive inequality or corporate greed—it needs to be about giving people the chance to rise. The key is to make ownership accessible, not just for a few, but for many. We must ensure that economic growth benefits all, not just those at the top.

When workers own equity in their companies, they care more about long-term success than short-term profits. When homeowners are invested in their communities, they protect and improve them. When people have skin in the game, they resist the allure of government control because they see how capitalism works when it's aligned with their interests.

That's why I believe the cure for socialism isn't more socialism—it's more ownership. It's creating a society where everyone has a real stake in America's economic future, not just a vote but a share.

The Real Test

Our democracy is only as strong as our citizens' belief in the system they live in. When people feel excluded from the economy, they look for alternatives. Socialism offers that allure—of control, of shared prosperity, of fairness—but it often delivers neither.

The real test for capitalism isn't whether it's perfect—it's whether it gives people a meaningful role in its success. That's why the path forward isn't to fight socialist ideas but to make ownership a reality for more Americans. Only then will we stop the rise of socialism—and instead build an economy that everyone can own.