China’s remarkable poverty-reduction campaign lifted hundreds of millions of people out of extreme deprivation between 1990 and 2019. By the end of that period, the number of Chinese living on less than $3 a day had fallen from 943 million to zero.
In the U.S., the opposite has occurred. Today, more than 4 million Americans survive on less than $3 a day—one of the highest levels of extreme poverty in the developed world.
Despite record productivity and technological breakthroughs, America’s gains have accumulated at the top. The country’s middle-income share has steadily declined, while lower-income earners have fallen further behind.
The poorest Americans now collect only 1.8% of national income. Comparable groups in China, Nigeria, and Bangladesh receive more. This reflects decades of widening inequality.
Policy decisions—including significant cuts to healthcare, nutrition assistance, and social programs—have deepened the crisis. Recent tariffs have also raised costs for working families while sparing the wealthiest.