A comprehensive index from the World Economic Forum finds that for such a rich country, America isn't doing all that well at creating prosperity.
The United States is one of the richest countries in the world. It is also one of the most unequal. As a report released today shows, the U.S. ranks 23 out of 30 developed nations in a measure known as the “inclusive development index,” which factors in data on income, health, poverty, and sustainability.
The index comes from the World Economic Forum, whose annual summit is taking place in Davos this week. It is a rather comprehensive measure of inequality, and the fact that the U.S. ranks so poorly is a sign of the country’s dramatic wealth concentration.Of all the factors in the index, the U.S. performed worst in what the WEF calls the inclusion category, which measures the distribution of income and wealth, and the level of poverty. Additionally, the country received particularly low marks in the areas of social protection—defined as efficiency of public goods and services and robustness of social safety nets—and employment and labor compensation. The U.S. joins Brazil, Ireland, Japan, Mexico, Nigeria, and South Africa as countries with inclusive-development rankings that fall below their GDP per capita rankings, a sign that their economic growth is not being shared, the report says. The U.S. had the largest gap between the two measures.