Despite the US’s economic success, income inequality remains breathtaking. But this is no glitch – it’s the system

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.

  • AmericanEconomicThinkTank@lemmy.world
    3·
    12 hours ago

    True, I do have a habit of getting overly enthusiastic in my use a metaphor, lmao and humor as I see.

    Compared to what life was like pre-80’s? Yes absolutely things have improved, but even if improvement of conditions exist for those into the billion, that doesn’t exclude the relative conditions on the ground.

    Unemployment is growing in younger demographics at rates near the peak of what the US experienced in 33. If you compare overall, sustain unemployment year to year is worse. Continuing lack in stability in land value has changed what was a bedrock backing for generational social mobility into a risky hedge for many.

    As you well know, and have said, just going off of say strength of the ren for pure purchasing power or daily wages is misleading. Compare the shifts in collegiate achievements, the chosen international schools that the middle class are sending their kids to get their degrees. Look towards the shifts in lower class, especially in the cities, towards day labor over even extended work contracts or proper salary. Look towards the accessibility of central heating, plumbing, electricity. See the treatment of the lower half a billion of Chinese society when they need to access healthcare, when they need the law. What is their commute like?