A new economic metric reveals that the United States faces higher average poverty than most Western European nations, despite stronger GDP figures.
Olivier Sterck, Associate Professor of Economics at Oxford, introduced "average poverty"-the average time it takes for someone to earn $1 in international terms. In 2025, that time is 63 minutes in the US, nearly double that of Germany, France, and the UK.
This measurement accounts for income distribution, revealing deeper inequality within the US. Since 1990, average poverty in the US has risen despite steady income growth, driven by increasing inequality. Over the same period, it fell in Germany, France, and the UK.
Sterck’s analysis shows that while all four countries saw similar income growth, only the US experienced a sharp rise in inequality, offsetting economic gains for many citizens.
"In the US, inequality has risen faster than average income," Sterck said. "That’s why average poverty increased-even in a growing economy."
The US ranks among the most economically unequal wealthy nations, with all 50 states seeing rising inequality since 1990, regardless of demographics or politics.