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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.
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*Scholar based in UK
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