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.
This is not to congratulate China for its authoritarian government, for its repression of minorities or for the iron fist it deploys against any form of dissent. But it merits pondering how this undemocratic government could successfully slash its poverty rate when the richest and oldest democracy in the world wouldn’t.
The truth is somewhere in the middle. GDP per capita is not really a good measure of quality of life on its own.
Historically the USA has brought a lot of people (most?) out of poverty by the world standard. Recent policy seems to be heading in the opposite direction. Quality of life has been declining for a long time, IMO mostly with our sense of community, the completely broken healthcare system, media consolidation, absurd levels of car dependency, high cost of having children, and a whole bunch of other location-specific factors (like cost of living in metro areas)
I think immigrant desire for relocation speaks volumes of where the greatest opportunity exists. The migration patterns vastly favor the US as being the place for the greater hope for the global poor, as evidenced by their footprints.
The US isn’t even in the top 10 most desirable counties for migrants (as a proportion of their population).