China Erases Extreme Poverty While America Lets It Grow

China’s transformation over the last three decades is staggering. In 1990, the World Bank estimated that 943 million Chinese citizens survived on less than $3 a day. By 2019, that number had fallen to zero, marking one of the most dramatic poverty-reduction efforts in history.
In the United States, the story unfolded very differently. More than 4 million Americans now live on less than $3 a day—three times more than 35 years ago. Despite being the wealthiest country on Earth, the U.S. has allowed extreme poverty to grow, not shrink.
Much of America’s economic success is undeniable. Its productivity has outpaced Europe, and new technologies like artificial intelligence promise even greater gains. But these successes have not been shared widely, reflecting choices about how national wealth is distributed.
U.S. income inequality continues to climb. In 1980, middle-income Americans earned over half the income earned by those near the top. By 2023, that share had collapsed to 42.5%. Meanwhile, the poorest Americans receive just 1.8% of total national income—less than the poor in several developing countries.
Policies such as steep tariff hikes, cuts to healthcare subsidies, and reductions in nutrition support have intensified inequality. These decisions demonstrate that America’s widening wealth gap is not an accident of capitalism but a deliberate outcome of political choices.