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- cross-posted to:
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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.
Share of national wealth is not affluence. It is a measure that gets distorted when a country has a disproportionate number of billionaires relative to their own population and to other countries.
If you adjust for purchasing power, the median individual in China is only $29k. By the same measure, the US is $60k.
I guess their point is if you exclude the upper half, China has managed to fare better.
Basically if we torture the numbers either side can get them to say whatever that side wants, by cherry picking criteria or excluding certain portions of the population.
Which is frankly a fantastic outcome for China, where in the past there was no way to make the numbers even close, now things are close enough as to each side being able to point out a way of measuring which makes them look better.