American Prosperity is Greater Than Most of Us Realize

September 08, 2023

by Lipton Matthews Mises.org

Traveling was once a luxury for the rich, but today even working-class people enjoy vacations. In America, people have gotten so wealthy that planning summer vacations is a priority for many families. Living standards have improved so tremendously that elite amenities are now commonplace. Nearly 90 percent of American homes rely on air-conditioning, and 92 percent of households have access to at least one vehicle.

Relative to the globe, most Americans are high-income people. People who are considered poor in America would be rich in developing countries. Compared to other rich countries in Europe, America is also doing remarkably well. A 2019 study published by the think tank Just Facts shows that after accounting for all income, philanthropy, and noncash welfare benefits, the bottom 20 percent of Americans have a higher level of material consumption than all citizens in most rich countries. From 1990 to 2015, consumption per capita in America increased by 65 percent, whereas Europe registered a paltry growth of 35 percent.