#1
#1 out of 1
world17h ago
A new way to measure poverty shows the US falling behind Europe
- A new measure, called 'average poverty,' tracks the time needed to earn $1 in international dollars, highlighting US inequality.
- In 2025, the US takes 63 minutes to earn $1, about twice the time of Germany, France, and the UK.
- The metric uses purchasing power parity to compare how much goods a dollar buys in different countries.
- The US shows higher average poverty due to greater income inequality, outpacing income growth.
- Europe generally shows declines in average poverty as inequality remains more stable.
- Global poverty, by this metric, has declined 55% since 1990.
- Mississippi, the US's poorest state, had a 2024 GDP per capita near Germany's level.
- Sterck argues that inequality growth, not just income growth, drives changes in average poverty.
- The study situates the measure within SSRN research and The Conversation for context.
- The article notes that policy discussions should consider distributional aspects of income, not just levels.
- The measure uses a broad definition of poverty, not limited to hours worked or employment status.
Vote 0