Geopolitical factors clearly influence economies and with them, individual currencies fluctuate. This phenomenon is behind the current public unease with neoliberalism (defined as the transfer of economic control from public to private entities) and the rise of influence of multinational corporations. Critics would suggest that whilst the state has a vested interest in the well-being of the citizens it represents, this linkage is broken when control passes to businesses whose only interest is profit.
The US economy is the largest in the world yet a sizeable proportion of its population live in poverty. Partially, the success of Donald Trump stemmed from an appeal to the demographic that believed that the “American Dream” had passed them by and that somehow, a billionaire businessman would take their needs to heart. This constituency would have included many of the most financially disadvantaged Americans for whom the neoliberal experiment has plainly failed.
It is suggested that the US has now reduced the proportion of its citizens living in poverty back to pre-Global Financial Crisis levels. Median household incomes rose by 3.2% last year to $59000, but this measure is deceptive: a median value ranks (household) income from low to high and selects the middle point on the range. A better picture would be given from income percentiles. Currently, the US census estimates that 12.7% of Americans live below the poverty line (roughly 41 million people) and therefore unable to meet basic needs. This is assessed as $24500 for a family of four.
This data comes against a backdrop of one of the most sustained (albeit low-key) economic expansions in US history where unemployment officially stands at its lowest point since 2001. In contrast, the fortunes of the top 5% of families in income terms in the USA was up by 5.5% since 2015 at an average figure of $375000; almost 30 times higher than that of the poorest fifth (20%) of American families which rose by 2.6% to a paltry $12943 (again, this average is a median value). Estimates suggest that America comprises approximately 126 million households.