# Democrats Rethink Capitalism

> Progressives could reshape U.S. capitalism after midterm wins.
- Title: Democrats Rethink Capitalism · Foreign Policy | Shortify
- Summary: Progressives could reshape U.S. capitalism after midterm wins. Democrats may rebuild capitalism around human connection after midterm victories.
- Keywords: democrats, capitalism, midterm elections, democratic socialism, zohran mamdani, alexandria ocasio-cortez, bernie sanders, labor institutions, minimum wage, universal healthcare, taxes, Foreign Policy
- Source: Foreign Policy — https://foreignpolicy.com/2026/11/04/midterm-elections-progressive-democratic-socialism-us-capitalism
- Author: Antara Haldar
- Read time: 1 min
- Topics: democrats, capitalism, midterm elections, democratic socialism, zohran mamdani, alexandria ocasio-cortez, bernie sanders, labor institutions, minimum wage, universal healthcare, taxes
## Progressive wave gains ground
Progressive candidates won Senate seats in Texas, South Carolina, Minnesota, and Colorado.

> The barbarians are inside the gate
## Democratic socialism rises
Democratic socialism gained traction amid economic crisis and voter disillusionment.
## Economic consensus under strain
Neoclassical economics promised growth but failed to address inequality and climate change.
## Human psychology challenges capitalism
Economics assumes humans are self-interested, but people value connection and emotion.
## Institutions too small or too large
Global problems require institutions that are neither too small nor too large.
## Affective institutions proposed
Community governance structures could create robust economic communities.
## Mondragon cooperatives model
Mondragon cooperatives in Spain employ 71,000 people and generate $12 billion in sales.
## European Union experiment
The EU uses subsidiarity to balance national and regional decision-making.
## Progressive opportunity
Democrats have a historic chance to reshape capitalism after midterm victories.
## Zohranomics experiment
New York City Mayor Zohran Mamdani tests democratic socialism locally.
## Capitalism's blind spots
Capitalism ignores carbon emissions and children's value while increasing inequality.
## Economic consensus challenged
The 'end of history' economic model faces growing criticism from voters and experts.
## Progressive vision
Progressives aim to build institutions centered on human connection and community.
## What's next
Democrats must rebuild capitalism around human relationships after midterms.
## Key takeaway

Democrats may rebuild capitalism around human connection after midterm victories.