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.

    • Alcoholicorn@mander.xyz
      1·
      6 hours ago

      Your numbers do not match reality, I’ve lived in both places. Idk, maybe they’re making bad assumptions like that americans have cheaper food options than reality. Come over here and see, subway fares are 14 cents, meals 1-8 USD, rent is <500 outside Shanghai snd Beijing, you can get an x-ray and doctors consult for like 6 bucks.

      Compare that to a 250/mo car payment, 8-20 USD meals, and then rent and healthcare, and its clear your model is flawed or has bad numbers.

      • 52fighters@lemmy.sdf.orgEnglish
        1·
        4 hours ago

        These are not my numbers. They come both from the IMF and the World Bank. Chinese GDP per capita PPP is only $29k. By the same measure, the US is $60k. You don’t have to believe it. Yes, China is cheap, but low prices produce low incomes to those selling their goods and services.