The United States economy is demonstrating robust growth, significantly outpacing other developed nations, according to an analysis citing data from The Financial Times. This performance challenges narratives suggesting the American economic system is a failure.
Workers in the U.S. with low literacy skills earn approximately $30 per hour, a figure comparable to the average worker in Great Britain, who earns around $20 per hour. Furthermore, two-thirds of low-literacy workers in the U.S. are employed, compared to fewer than half in the UK.
Wage Disparities Across Sectors
Beyond low-literacy workers, broader wage comparisons reveal significant advantages for Americans. Factory workers in the U.S. earn 60% more than their UK counterparts, even after adjusting for the cost of living. Electricians and plumbers see a 90% wage premium in the U.S., and retail workers earn double what they would in the UK.
This economic outperformance is not limited to specific sectors. The analysis indicates that the U.S. has been widening its economic lead over peer countries, including Canada, the UK, and European Union members, over the past 15 years.
Critiques and Relative Poverty Metrics
The commentary addresses criticisms, such as those from Sen. Bernie Sanders, regarding child poverty rates. A figure of 21.1% for child poverty in the U.S., cited from the Organization for Economic Cooperation and Development (OECD), has been characterized as misleading by critics. This OECD metric measures income relative to a country's median income, indicating relative standing rather than absolute material deprivation.
If all incomes, including those of the poor, were to double in the U.S., the OECD measure would show the same poverty rate because the median income would also rise. The U.S. Census Bureau's official figure for child poverty stands at 14.3%, a rate that has seen a substantial decline since the late 1950s.
Economic Performance vs. Inequality
Critics argue that the OECD metric primarily reflects income inequality, which is presented as an obsession for some political factions, rather than a direct indicator of economic performance. While the U.S. has high levels of wealth concentration, a significant portion of the American population experiences higher living standards compared to their counterparts in other Western nations.
The analysis suggests that critiques of the U.S. economic system, while valid in pointing out specific issues like the high costs of housing, education, and healthcare, should acknowledge the overall strength of the American economy. The argument is made that a system that consistently delivers such high living standards should be preserved rather than dismantled based on what is described as misleading data.