China has brought millions out of poverty. The US has not – by choice
Despite the United States enjoying significant economic growth and technological advancements, income inequality remains a staggering issue that highlights systemic flaws within the American economic framework. While other nations, notably China, have made remarkable strides in poverty reduction—bringing the number of people living on less than $3 a day down to zero by 2019—America has seen a worrying trend in the opposite direction. According to the World Bank, over 4 million Americans, or approximately 1.25% of the population, struggle to survive on less than $3 a day, a figure that has more than tripled over the past 35 years. This stark contrast raises serious questions about the effectiveness of the U.S. economic model and its ability to provide equitable prosperity for all citizens.
The narrative of the U.S. as an economic powerhouse is often supported by impressive productivity statistics, with American workers producing more goods per hour than their European counterparts. Furthermore, the rise of artificial intelligence is expected to propel the U.S. economy even further ahead. However, this productivity boom has not translated into widespread financial security for the average American. Instead, the gains from increased productivity have disproportionately benefited the wealthiest individuals and corporations, exacerbating the divide between the rich and the poor. This systemic income inequality is not merely a byproduct of economic growth; it is embedded in the very structure of the U.S. economy, where policies and practices often favor capital over labor, leaving many Americans behind in the race for prosperity.
The implications of this growing inequality are profound, affecting not only economic stability but also social cohesion and political dynamics. As the wealth gap widens, the potential for social unrest increases, with marginalized communities feeling the brunt of economic neglect. The U.S. must confront these disparities head-on, reevaluating its economic policies to ensure that the benefits of growth are shared more equitably. Without significant reform, the promise of the American Dream may remain out of reach for millions, undermining the very foundation of a society that prides itself on opportunity and fairness.
Despite the US’s economic success, income inequality remains breathtaking. But this is no glitch – it’s the system
The Chinese did rather well in the age of globalization. In 1990, 943 million people there lived on less than $3 a day measured in 2021 dollars – 83% of the population, according to the World Bank. By 2019, the
number was brought down to zero
. Unfortunately, the United States was
not as successful
. More than 4 million Americans – 1.25% of the population – must make ends meet with less than $3 a day, more than three times as many as 35 years ago.
The data is not super consistent with the narrative of the US’s inexorable success. Sure, American productivity has zoomed ahead of that of its European peers. Only a handful of countries manage to produce more stuff per hour of work. And artificial intelligence now promises to put the United States that much further ahead.
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