Trade policy, specifically tariffs that increase consumer prices, is highlighted as one of the political choices that disproportionately harm lower-income American households. These decisions contribute to the widening inequality gap in the US.
The compounding effect of such policies, alongside favorable tax legislation for the wealthy and cuts to safety nets, has led to a crisis where over four million Americans live in extreme poverty, surviving on less than $3 a day.
This US trend stands in stark opposition to China’s historic success in moving nearly a billion people out of extreme poverty. The US’s policy choices have created an income distribution where the poorest 10% receive less of the national income than their counterparts in Nigeria, China, or Bangladesh.