Democratic socialists have just experienced one of their most successful election nights to date.

But there is one problem: most American voters actually do not favor socialism.

On Tuesday, six candidates supported by the Democratic Socialists of America ( DSA ) won seats in the House of Representatives, giving this movement its largest foothold in Congress to date and also granting it greater influence within the Democratic Party, which is already divided over how far the party should move to the left.

These victories came shortly after the inauguration of New York City Mayor Zohran Mamdani ( Zohran Mamdani ), marking another step forward in the movement that has challenged the party's establishment for many years. Now, as Democrats sweep control of Congress, the question remains whether these electoral outcomes can be translated into real political power.

CNBC The latest voter survey indicates that handing too much power to the party's left wing may pose risks. The survey, which covered approximately 80,000 voters in the mid-term elections, showed that 53% had a negative view of socialism, while 33% held a positive view. Capitalism fared much better, with 56% expressing a positive attitude. Only 18% of the voters identified themselves as democratic socialists.

This disconnect highlights the opportunities and challenges faced by the Democratic Party and its growing left wing. How the party manages to bridge the gap between "reforming capitalism" and "fundamentally transforming capitalism" may determine its legislative agenda in Congress, its economic narrative to voters, and ultimately its direction leading up to the 2028 presidential election.

A Complex Night on the Left Wing

The candidates who won on Tuesday all succeeded in solid Democratic districts, and once they are sworn in, the presence of DSA in Congress will quadruple.

However, it is expected that the Democratic Party will win more than 250 seats in the House of Representatives, which could dilute their influence. Even if they lose all 8 DSA votes on most issues, the party leadership can still maintain a majority, which means that the party's bargaining power will be much lower than what it could have in a House where the balance of power is more equal.

Nevertheless, this movement is accumulating financial strength. While it mainly relies on membership fees, wealthy donors have also begun to support its candidates through peripheral organizations. According to an analysis of documents from the Federal Election Commission as of October 31 by CNBC, the 12 largest donors to the Super Political Action Committees (Super PACs) that support certain DSA background candidates have donated a total of nearly 5.9 million dollars in this round.

Co-chairperson Megan Romer ( Megan Romer ) said, "We have attracted more donors, and at the same time, our grassroots mobilization has also strengthened, allowing us to spread our message more effectively. Relying solely on mailing out brochures and advertisements is no longer enough. You must knock on more doors, make more phone calls, and talk to more people in workplaces and unions."

The more telling tests on Tuesday occurred outside of liberal strongholds.

In Florida, DSA member Angie Nixon ( Angie Nixon ) came close to causing a upset in a state where Democrats haven't won a Senate election since 2012, and where Trump won by a margin of 13 percentage points in 2024. However, her loss was more substantial than that of David Jolly ( David Jolly ), the Democratic candidate for governor who took a more moderate approach.

Michigan tells a similar story. The progressive candidate Abdul El-Sayed ( Abdul El - Sayed ) won a Senate seat with the support of Bernie Sanders ( Bernie Sanders , a Democrat from Vermont) who identifies as a democratic socialist, but his lead was nearly 4 percentage points smaller than that of Jocelyn Benson ( Jocelyn Benson ), who was elected governor.

El-Said shares many of the views with DSA, but he is neither a member of that organization nor has he received its endorsement. He stated that he prefers to reform capitalism rather than replacing it with another system.

State-level referendums also revealed similarly complex ideological judgments: In the deeply red state of Montana, nearly two-thirds of voters supported restrictions on corporate political spending; whereas in the deeply blue state of California, voters rejected a proposal to tax the wealth of billionaires, with a margin of about 10 percentage points, despite their simultaneous approval of raising income taxes for the wealthy.

These results exacerbate the identity dilemma of the Democratic Party before 2028. As Representative Alexandria Ocasio-Cortez (Alexandria Ocasio - Cortez, a Democrat from New York State) – the party's most well-known representative – seems to be considering running for the White House, a question becomes even more prominent: Can left-wing populism expand the party's coalition without alienating the moderates in the swing states necessary to win the presidential election, especially in a less favorable political environment?

Romer said to CNBC, "I think that many people who voted for the Democratic Party would not have voted that way under normal circumstances; they probably did so with reluctance."

Capitalism or socialism?

But obviously, even voters who reject socialism are not satisfied with the existing capitalism.

In a voter survey, three-quarters of respondents believed that the economic situation in the United States was poor or not very good, while only 2% thought it was very good. 70% of people stated that the current economic system favors the wealthy rather than treating most Americans fairly.

This dissatisfaction has fueled a form of populistic rhetoric that goes far beyond the socialist left. Whether it's Adam Hamilton from Kansas ( Adam Hamilton ) or James Taralico from Texas ( James Talar token issuance ), the victorious Democrats capitalized on people's anger over rising living costs, economic inequality, and the political influence of wealthy elites. Another 18 candidates who received Sanders' endorsement also won, including in traditionally right-leaning states such as Ohio and Montana.

In his victory speech after winning a Senate seat in "Lone Star State," Taralico said, "The real struggle in this country is not between left and right, but between the upper and lower classes. The people at the top are doing their utmost to make us angry and divided, because our unity threatens their wealth and power."

Even those who were not running for office noticed this. Elizabeth Warren ( Elizabeth Warren ), a federal senator from Massachusetts, posted a video on X on Friday saying, "The Democrats won the election thanks to populist economic fighters."

Economists point out that indicators such as the increasing concentration of wealth and the decline in wages as a proportion of GDP in the United States suggest that the wealth gap in the country is widening. After the pandemic, the "K-shaped economy" has become a common term used to describe the uneven recovery among different income groups.

Americans showed their economic dissatisfaction before voting this week. The much-anticipated Consumer Confidence Index from the University of Michigan once dropped to a historic low this year.

RSM Joe Bruselas, the chief economist of a tax firm ( Joe Brusuelas ), said: "We are in an upward tide, but it doesn't lift all ships equally. This is not the kind of story we used to tell ourselves when we were young."

Bruselas believes that the results of this week do not indicate that voters as a whole despise capitalism, but rather that they want a system that also includes populist policies such as “universal healthcare.” In his words, it is “capitalism with a human touch.”

He said, "These things are not mutually exclusive. We can walk while chewing gum."

Wall Street begins to prepare

After the Democratic Party's sweeping victory on Tuesday, some individuals on Wall Street began to prepare for potential policy changes that could affect their clients' investment portfolios. Analysts at Bank of America detailed what increased scrutiny of social media platforms or artificial intelligence data centers could mean for the stock prices of related companies. Imperial Bank of Canada ( CIBC ) has compiled a stock basket, believing that these stocks could benefit under a Democratic-controlled Congress.

However, compared to Mamdani's victory in last year's mayoral election, the reaction from senior Wall Street figures and New York business giants this week following the election was much more subdued.

After Mamdani won the party nomination, Bill Ackman, CEO of Pershing Square Capital Management, expressed that he was "a bit disappointed." Before Mamdani's victory, Katherine Wilde, head of the non-profit organization "New York City Partnerships" which represents New York business leaders, told CNBC that as Mamdani's support in the polls rose, "that's what fear feels like."

Wall Street tycoons once worried about how a city regarded as the center of financial markets and global capitalism could survive under the leadership of someone who claimed to be a socialist. They also questioned whether billionaires would flee the city or whether companies would move their headquarters elsewhere – but since Mamdani took office, most of these concerns have not come to fruition.

About 10 months into Mamdani's tenure, Anthony Chen ( Anthony Chan ), former chief economist at JPMorgan Chase, stated that financial giants have realized that politics does not necessarily lead to substantial policy changes. Chen said this is also the message they took with them as they left this week, because many people understand that any new members of Congress in Washington who align with democratic socialist policies will be in the minority.

Chen said, "Many people I know used to be very firm in their opposition to his campaign, but now they send their children to his free daycare center." This refers to Mamdani's collaboration with the state government to expand a free program for 2-year-old children in New York City.

Chen said, "I originally thought that if this mayor came to power, the world would be doomed." He also served as an economist at Barclays and the Federal Reserve of New York. "Now, however, you send your child to his free daycare center."

But DSA has even greater ambitions for 2028. As its political influence, organizational infrastructure, and financial support continue to grow, this movement is seeking to expand its influence across the country, and one of its most important allies, Ocasio-Cortez, is also considering running for the White House.

Romer said, "This infrastructure already exists, and it will have a significant impact on potential left-wing presidential candidates. This is really a moment of either success or failure. We truly must deliver results."