China's Poverty Reduction Compared to Persistent Poverty and Inequality in the US
China successfully reduced the number of people living on under $3 a day (in 2021 dollars) from 943 million in 1990, representing 83% of its population, to zero by 2019. In contrast, the United States today still has over 4 million people, about 1.25% of its population, living on under $3 a day — more than three times the number from 35 years ago.
Despite the US having a per-capita output six times higher than China’s, more Americans live in extreme poverty. Within the US, the share of middle-income earners declined from approximately 52.5% in 1980 to 42.5% in 2023, while income shares of the top 90th percentile rose relative to the middle. The bottom 10% of Americans receive about 1.8% of the national income, a level comparable to that of poor Bolivians; by comparison, Nigeria's bottom 10% take 3%, China 3.1%, and Bangladesh 3.7%.
Recent economic policies also highlight disparities. According to estimates from the Yale Budget Lab, tariffs introduced during the Trump administration and legislation such as the Big Beautiful Bill Act would reduce household income for all but the richest 20%, with the bottom 10% losing about 7% of their income.
Inequality in the US has been a persistent issue across multiple administrations since Carter, with only Clinton's presidency and Trump’s first term seeing brief improvements for the poorer half of the population, largely due to COVID-era subsidies.
The article underscores the contrast with China, where an undemocratic government enacted policies that meaningfully reduced poverty. This comparison prompts reflection on policy choices in the US regarding wealth distribution and poverty reduction.
