The US has struggled with poverty despite being one of the wealthiest countries. In 1990, 83% of China’s population lived on less than $3 a day, but by 2019, it had dropped to zero. In contrast, over 4 million Americans (1.25% of the population) struggle to make ends meet with less than $3 a day. The US’s economic output is six times that of China, yet more poor people live in China.
The story of US inequality is well-known, but it’s getting worse. In 2023, the poor share of the nation’s income had slipped further to developing-world levels. Americans in the poorest 10th percentile draw about 1.8% of the nation’s income, similar to poor Bolivians and Bangladeshis.
The US’s dismal performance at sharing wealth is not due to market forces alone. Globalization and technology have contributed to reduced labor costs and exacerbated inequalities among the working class. The Trump administration’s latest initiatives, including tariffs and a bill that would cut health coverage and nutrition assistance programs, will disproportionately affect the poor.
This is not a new issue; US indifference towards its poor has been a feature of both Democratic and Republican governments over the last 50 years. Despite Trump’s rhetoric about representing the common American worker, he has exacerbated US capitalism’s problems. China’s authoritarian government successfully slashed its poverty rate, while the richest democracy in the world struggles to address its own inequality issues.
Source: https://www.theguardian.com/us-news/2025/nov/23/china-us-poverty-income-inequality