Math & Magic: Can Ownership Fix Capitalism’s Image Problem?

A growing loss of faith in capitalism — particularly among younger Americans — is driving a new push to give every citizen a direct financial stake in the system, according to financier and philanthropist Michael Milken.

Appearing on the latest episode of “Math & Magic” hosted by iHeartMedia CEO Bob Pittman, Milken said roughly half of Americans now question capitalism, a shift he ties largely to the fallout from the 2008 financial crisis and the rising cost of higher education.

“Young people didn’t feel the financial system was working for them,” Milken said, pointing to $1.7 trillion in student loan debt and homeownership challenges that reshaped perceptions of economic opportunity.

Milken is backing a proposal aimed at reversing that sentiment by giving every child born in the U.S. a $1,000 investment account — an initiative he says could restore belief in the system by creating ownership from day one.

Under the plan, the accounts would grow over time through compounding and potentially additional contributions from employers and private donors. Milken said early projections show the accounts could reach meaningful levels by adulthood, with the broader goal of making Americans feel they “own a piece” of the economy.

The concept is modeled in part on systems like Australia’s superannuation program, which has built trillions in retirement assets across a relatively small population. Milken argues similar participation in the U.S. could significantly raise median net worth, which lags other developed nations despite America’s high average wealth.

“The sooner you start saving, the more it compounds,” he said. “Let’s start at one year old, not 40.”

Beyond financial access, Milken tied declining confidence in capitalism to structural barriers, particularly the surge in college costs. He noted that tuition at the University of California, Berkeley was just $206 annually when he attended in the 1960s — a figure that would be under $800 today if it had tracked inflation.

“That was the seed,” he said of today’s economic frustration.

Milken’s broader message centers on expanding access — a theme that has defined his career, from pioneering high-yield financing in the 1970s to backing entrepreneurs shut out of traditional capital markets.

“The real asset of any company is its people,” he said, emphasizing that talent — not credit ratings — should determine who gets funding.

That same philosophy now extends into his philanthropic work, including efforts to accelerate medical research and expand economic mobility. Milken said programs that give workers equity stakes and broaden ownership are already distributing billions of dollars to lower-wage employees, but he views those efforts as just a starting point.

“We need to make people feel they’re part of the system,” he said.

The stakes are significant. While the U.S. has the highest average net worth globally, Milken noted its median net worth remains comparatively low — highlighting a widening gap between the wealthiest Americans and the broader population.

His goal: narrow that divide by turning more Americans into investors.

“We can dramatically change that in the next decade,” Milken said.