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.
Continue reading...Why This Matters
A stark contrast emerges between the US and China's poverty reduction efforts, highlighting a pressing issue of income inequality in the US. Despite the country's economic success, millions of Americans struggle to make ends meet, raising questions about the effectiveness of its economic system. This disparity has significant implications for the nation's social and economic future.
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Context
The World Bank's data reveals a striking trend: China's poverty rate plummeted from 83% in 1990 to zero in 2019, while the US saw a significant increase in poverty, with over 4 million Americans living on less than $3 a day. Media outlets have highlighted this disparity, with The Guardian and other publications emphasizing the need for a reevaluation of the US's economic policies. The contrast between the two nations' approaches to poverty reduction has sparked a broader discussion on the role of government intervention in addressing income inequality.
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