Skip to main content

Considered Mecca of capitalism, US' 11.5% people live in poverty, 21% adults are illiterate

By Bhabani Shankar Nayak* 
The United States of America (USA) is often considered as the "Mecca of Capitalism." Its powerful military-industrial complex, supported by a defence budget of $841.4 billion, makes it one of the world’s most formidable military powers. The U.S. also leads one of the most powerful imperialist alliances, the North Atlantic Treaty Organization (NATO). Thanks to American people and their ingenuity in shaping scientific and technological advancements, putting the U.S. in a leading position among the world's nations. However, despite its economic power and scientific and technological progress, the benefits of this growth do not fully reach the average Americans. Capitalist development in the U.S. has come with widespread poverty. Even after centuries of unchallenged capitalist dominance, the U.S. and its system have failed to provide many citizens with the basic necessities for a dignified life.
According to the United States Census Bureau, 36.8 million people in the U.S. lived in poverty in 2023, representing nearly 11.5 percent of the American population. The child poverty rate increased by 1.3 percentage points to 13.7 percent in 2023. Poverty rates are particularly high among ethnic minorities, young adults, rural populations, and the elderly. Social security programs currently keep approximately 27.3 million Americans out of poverty, without which these individuals would fall below the poverty line. The Organisation for Economic Cooperation and Development (OECD) reports that the U.S. has the highest poverty rate among 26 developed countries. Similarly, data from the United Nations Children’s Fund (UNICEF) indicates that the U.S. ranks just behind Mexico in child poverty, placing it at the highest level among the world’s 35 wealthiest nations. Additionally, the Current Population Survey Annual Social and Economic Supplement (CPS ASEC), conducted by the U.S. Census Bureau, reveals a widening income gap in the U.S., with racial and gender income disparities continuing to challenge the perceived success of American capitalism. Poverty breeds all forms of impoverishment among American population in terms of their access to education, health, nutritionally adequate food and employment.
The U.S. is home to Ivy League institutions, yet these prestigious, schools, colleges and universities remain largely inaccessible to low-income individuals and their children. Therefore, the U.S. ranks 36th in the world literacy index. According to 2024 data, 21 percent of American adults are illiterate, and nearly 54 percent have literacy skills below a sixth-grade level, with 20 percent below a fifth-grade level. Data from the National Center for Education Statistics (NCES) paints a gloomy picture of literacy in the U.S. The literacy rates among African American and Hispanic students are 20 percent lower than those of other ethnic groups and considerably lower than those of white Americans. Additionally, over 25.2 percent of American young adults lack a high school diploma. Illiteracy is not a personal choice for many Americans; rather, it reflects systemic issues imposed by a capitalist framework that often restricts access to education. Poverty limits educational opportunities for many citizens, and the profit-driven approach to education has made it increasingly inaccessible to low-income Americans.
The U.S. Department of Agriculture’s report, ‘Household Food Security in the United States’ in 2023, published in September 2024, reveals that 13.5 percent of American households are food insecure—a significant increase compared to 2022. The report also indicates that 5.1 percent of U.S. households experienced very low food security, while 8.9 percent of households with children faced very low food security in 2023. In 2021, 34 million people in the U.S. were food insecure; by 2022, this number rose to 44 million. There is a 30 percent increase in the food-insecure population and a 45 percent rise in child food insecurity. Hunger has become a daily reality that challenges American capitalism, which often generates prosperity for the wealthy but leaves many struggling with basic needs.
Despite economic growth and development in the U.S., 4.1 percent of the population remains unemployed. According to the U.S. Bureau of Labor Statistics, nearly 7 million Americans are currently unemployed. However, employment data can be misleading, as it includes individuals working in informal sectors, such as coffee shops or other low-wage jobs, where conditions are often precarious and subject to "hire-and-fire" practices. The unemployment rate among American youth was 9.2 percent as of September 2024, and employment in the manufacturing sector continues to decline. This employment landscape raises questions about the ability of capitalism to generate sustainable, quality jobs for the wider population.
The World Population Review report reveals that, as of 2024, over half a million people in the U.S. are experiencing homelessness. In New York, homelessness levels have reached those last seen during the Great Depression of the 1930s. The U.S. Department of Housing and Urban Development (HUD) reported that in January 2023, 653,104 Americans were experiencing homelessness—a 12.1 percent increase from 2022. These widespread deprivations stem from an inflated real estate market driven by credit-based capitalism. Mortgage products have enabled banks to capture a substantial share of Americans' incomes through interest payments, making housing increasingly unaffordable for many.
Poverty, illiteracy, unemployment, and homelessness create conditions that lead to lower life expectancy and higher mortality rates among poor, vulnerable, and ethnic minority groups in the U.S. The US Centers for Disease Control and Prevention (CDC) reports that in 2020, the mortality rate for African American infants was 10.4 per 1,000 live births—more than double the rate for white infants, which was 4.4 per 1,000. Similarly, The Journal of the American Medical Association noted a significant disparity in life expectancy, with the richest 1 percent of men in the U.S. living 14.6 years longer than the poorest 1 percent, and the gap for women being 10.1 years.
The trap of poverty, illiteracy, hunger, and homelessness is neither accidental nor a choice made by the American people. This deprivation is a product of the American capitalist system, which has failed to deliver on its promises. There is no illusion here—American capitalism has fallen short of achieving its "American Dream" of widespread prosperity. Slogans like "There is no alternative to capitalism," "Capitalism is the only option," and "Capitalism offers peace and prosperity" are often invoked to reinforce capitalist narratives and dismiss any alternative systems. Such rhetoric has worked to establish capitalism as the dominant system, embedded in the everyday lives of people and shaping the fate of the planet. However, this dominance has led to widespread challenges, depriving many Americans of basic needs such as food, shelter, healthcare, education, and employment. In this way, the failures of American capitalism reveal themselves daily in the lives of the American people. Therefore, capitalism as a failed system can never be an alternative. It can never provide much needed peace and prosperity for a dignified human life. 
---
*Scholar based in UK 

Comments

TRENDING

Loktantra Bachao Abhiyan raises concerns over Jharkhand Adivasis' plight in Assam, BJP policies

By Our Representative  The Loktantra Bachao Abhiyan (Save Democracy Campaign) has issued a pressing call to protect Adivasi rights in Jharkhand, highlighting serious concerns over the treatment of Jharkhandi Adivasis in Assam. During a press conference in Ranchi on November 9, representatives from Assam, Chhattisgarh, and Madhya Pradesh criticized the current approach of BJP-led governments in these states, arguing it has exacerbated Adivasi struggles for rights, land, and cultural preservation.

Promoting love or instilling hate and fear: Why is RSS seeking a meeting with Rahul Gandhi?

By Ram Puniyani*  India's anti-colonial struggle was marked by a diverse range of social movements, one of the most significant being Hindu-Muslim unity and the emergence of a unified Indian identity among people of all religions. The nationalist, anti-colonial movement championed this unity, best embodied by Mahatma Gandhi, who ultimately gave his life for this cause. Gandhi once wrote, “The union that we want is not a patched-up thing but a union of hearts... Swaraj (self-rule) for India must be an impossible dream without an indissoluble union between the Hindus and Muslims of India. It must not be a mere truce... It must be a partnership between equals, each respecting the religion of the other.”

A Marxist intellectual who dwelt into complex areas of the Indian socio-political landscape

By Harsh Thakor*  Professor Manoranjan Mohanty has been a dedicated advocate for human rights over five decades. His work as a scholar and activist has supported revolutionary democratic movements, navigating complex areas of the Indian socio-political landscape. His balanced, non-partisan approach to human rights and social justice has made his books essential resources for advocates of democracy.

Four J&K MLAs visit Wular lake, pledge support to fisher community, environmental conservation

By Shamim Ahmed*   In a historic meeting that highlighted both environmental and social concerns, four Members of the Legislative Assembly (MLAs) visited Wular Lake to meet with the fisherfolk community, signaling a significant step in addressing their longstanding issues. This gathering, organized with the support of dedicated advocates, marks a strengthening of efforts to both safeguard the lake’s ecosystem and support the community’s welfare.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Supreme Court’s dismissal of PIL on Covid vaccine safety is counter to known science and mathematics

By Bhaskaran Raman*  On 14 Oct 2024, the Supreme Court of India dismissed a Public Interest Litigation (PIL) on the side-effects of the Covid vaccine. In 2021, the world saw the rollout of various Covid vaccine candidates. In India, Bharat Biotech’s Covaxin and Serum Institute of India’s Covishield were rolled out. Covishield was nothing but Oxford’s AstraZeneca relabelled in India. The importance of open-minded and scientific probe of Covid vaccine safety In 2020/2021, all Covid vaccines were authorized for emergency use, which meant that the necessary efficacy and safety follow-up was incomplete at that time. The originally approved trials – called randomised controlled trials (RCT) had a “vaccine” group and a “placebo” group for comparison. Such experimental comparison/control is the cornerstone of the scientific method – which even children learn in photosynthesis experiments in class-1. The vaccine trials were scheduled to conclude in late 2022/early 2023. For instance, Covax...

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah  The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

Right-arm fast bowler who helped West Indies shape arguably greatest Test team in cricket history

By Harsh Thakor*  Malcolm Marshall redefined what it meant to be a right-arm fast bowler, challenging the traditional laws of biomechanics with his unique skill. As we remember his 25th death anniversary on November 4th, we reflect on the legacy he left behind after his untimely death from colon cancer. For a significant part of his career, Marshall was considered one of the fastest and most formidable bowlers in the world, helping to shape the West Indies into arguably the greatest Test team in cricket history.

Will Left victory in Sri Lanka deliver economic sovereignty plan, go beyond 'tired' IMF agenda?

By Atul Chandra, Vijay Prashad*  On September 22, 2024, the Sri Lankan election authority announced that Anura Kumara Dissanayake of the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) alliance won the presidential election. Dissanayake, who has been the leader of the left-wing JVP since 2014, defeated 37 other candidates, including the incumbent president Ranil Wickremesinghe of the United National Party (UNP) and his closest challenger Sajith Premadasa of the Samagi Jana Balawegaya. 

Unlike other revolutionaries, Hindutva icon wrote 5 mercy petitions to British masters

By Shamsul Islam*  The Hindutva icon VD Savarkar of the RSS-BJP rulers of India submitted not one, two,or three but five mercy petitions to the British masters! Savarkarites argue: “There are no evidences to prove that Savarkar collaborated with the British for his release from jail. In fact, his appeal for release was a ruse. He was well aware of the political developments outside and wanted to be part of it. So he kept requesting for his release. But the British authorities did not trust him a bit” (YD Phadke, ‘A complex Hero’, "The Indian Expres"s, August 31, 2004)