For better, for worse? Public support for the capitalist model of the economy

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A capitalist market economy is based on several institutional elements, such as private ownership and competition. Does public support for this economic model rise if the economy prospers, and fall during a downturn? Or is public support largely independent of the ups and downs of economic cycles? We hypothesize that positive economic performance increases support and that persons profiting personally are more supportive of the economic system's constitutive institutional elements. Using multilevel regression we study the determinants of individual-level support for the economic system. We also test for differences in the perception of economic performance due to political attitudes and personal properties. The findings partly support the hypotheses, indicating that macro-economic factors matter for individual-level attitudes towards the economy. Attitudes towards different institutional elements of the economic system also differ in the degree to which they are political or economic, and influenced by economic performance. Individual features – education and personal economic stakes – affect attitudes towards the economy, but a substantial share of the individual-level variation in economic attitudes remains unexplained.