The US Lags Behind China in Reducing Poverty, Not Because of Economic Forces, but Policy Choices
When it comes to tackling poverty, no country has been more successful than China. In 1990, an astonishing 943 million people lived on less than $3 a day - a staggering 83% of the population. By 2019, that number had plummeted to zero. Meanwhile, in the United States, over 4 million Americans struggle to make ends meet with less than $3 a day, a whopping 1.25% of the population.
The data paints a stark picture of a country where productivity has soared, yet poverty rates remain stubbornly high. American workers now produce more goods and services per hour of work than their European counterparts, but this success has not trickled down to those at the bottom of the income ladder. In fact, the US's economic output is six times that of China, yet it seems inexplicable that there are more poor Americans than Chinese.
One major factor contributing to this disparity is the distribution of wealth in America. The middle class has seen its share of income decline dramatically over the past few decades. In 1980, the income of the middle class accounted for around 52.5% of the top 90th percentile's earnings, but by 2023, that number had slipped to just 42.5%. Meanwhile, the rich have been getting richer, with their incomes growing more than twice as fast as those of the poor.
The result is a poverty rate in America that is rivalled only by developing countries like Nigeria and Bangladesh. Americans in the poorest 10th percentile now draw in around 1.8% of the nation's income, compared to 3% in China, 3.1% in Bolivia, and 3.7% in Bangladesh.
The problem isn't just a result of economic forces - it's also down to policy choices. The US has been slow to address its growing inequality, with many politicians more interested in appealing to market forces than taking action to help the poor. The Trump administration's latest initiatives, including massive tariffs and cuts to social welfare programs, are a prime example of this approach.
The impact of these policies will be felt disproportionately by those at the bottom of the income ladder. The latest estimate from the Budget Lab at Yale suggests that the tariffs and big beautiful bill will trim household incomes for all except the richest fifth of American families. For the rest, it's a 7% cut to take-home pay.
The root cause of America's indifference towards its poor is not just a recent phenomenon - it's been a feature of Democratic and Republican governments over the past 50 years. Since Jimmy Carter left office, the income of the rich has grown more than that of the poor in every administration except one (Bill Clinton) when subsidies raised incomes across the poorer half of the population.
In contrast to China's authoritarian government, which may have its drawbacks, America's lack of progress on poverty is a stark reminder that economic success is not just about growth rates and productivity - it's also about how that success is shared. Until the US addresses its growing inequality, it will struggle to truly lift millions out of poverty.
When it comes to tackling poverty, no country has been more successful than China. In 1990, an astonishing 943 million people lived on less than $3 a day - a staggering 83% of the population. By 2019, that number had plummeted to zero. Meanwhile, in the United States, over 4 million Americans struggle to make ends meet with less than $3 a day, a whopping 1.25% of the population.
The data paints a stark picture of a country where productivity has soared, yet poverty rates remain stubbornly high. American workers now produce more goods and services per hour of work than their European counterparts, but this success has not trickled down to those at the bottom of the income ladder. In fact, the US's economic output is six times that of China, yet it seems inexplicable that there are more poor Americans than Chinese.
One major factor contributing to this disparity is the distribution of wealth in America. The middle class has seen its share of income decline dramatically over the past few decades. In 1980, the income of the middle class accounted for around 52.5% of the top 90th percentile's earnings, but by 2023, that number had slipped to just 42.5%. Meanwhile, the rich have been getting richer, with their incomes growing more than twice as fast as those of the poor.
The result is a poverty rate in America that is rivalled only by developing countries like Nigeria and Bangladesh. Americans in the poorest 10th percentile now draw in around 1.8% of the nation's income, compared to 3% in China, 3.1% in Bolivia, and 3.7% in Bangladesh.
The problem isn't just a result of economic forces - it's also down to policy choices. The US has been slow to address its growing inequality, with many politicians more interested in appealing to market forces than taking action to help the poor. The Trump administration's latest initiatives, including massive tariffs and cuts to social welfare programs, are a prime example of this approach.
The impact of these policies will be felt disproportionately by those at the bottom of the income ladder. The latest estimate from the Budget Lab at Yale suggests that the tariffs and big beautiful bill will trim household incomes for all except the richest fifth of American families. For the rest, it's a 7% cut to take-home pay.
The root cause of America's indifference towards its poor is not just a recent phenomenon - it's been a feature of Democratic and Republican governments over the past 50 years. Since Jimmy Carter left office, the income of the rich has grown more than that of the poor in every administration except one (Bill Clinton) when subsidies raised incomes across the poorer half of the population.
In contrast to China's authoritarian government, which may have its drawbacks, America's lack of progress on poverty is a stark reminder that economic success is not just about growth rates and productivity - it's also about how that success is shared. Until the US addresses its growing inequality, it will struggle to truly lift millions out of poverty.
The US is seriously lagging behind China in tackling poverty. I mean, 4 million Americans struggling to make ends meet with less than $3 a day? That's just not right 
. It's all about policy choices, imo. America needs to rethink its approach to income distribution and social welfare programs. Those massive tariffs and cuts to social welfare programs are not doing the poor any favors 
. We need to prioritize people over profits and make sure everyone gets a fair shot at the American dream 
. It's time for the US government to step up its game and address growing inequality 
.
the fact that 4 million americans are strugglin' with less than $3 a day is straight up crazy 
and yep policy choices for sure, all those tax cuts and deregulation benefits mostly trickle down to the rich fam 
meanwhile the middle class is like "screw us" 
gotta make some serious changes in washington 
. Like, they've gone from 83% of the population living below $3 a day to ZERO 
. I think it's 'cause of how wealth is distributed - middle class incomes have been declining for decades, while the rich are getting richer 
. The US has been slow to address income inequality, and it's affecting people at the bottom of the income ladder hard 
. It's not just about economic forces, it's also 'bout how we choose to share our success 
. It's like we're not even playing by the same rules as everyone else. And it's not just about tariffs and welfare programs - it's a systemic issue that requires a fundamental shift in our approach.
.
like what is up with america????? 
it's all about policy choices man... the us is just not prioritizin poverty reduction enough 
the thing that gets me is how much wealth has been concentrated among the rich, it's like they're just getting richer while everyone else is stuck in poverty