China apologists often repeat the Communist Party’s line about the so-called “Chinese Economic Miracle,” claiming that Beijing has “lifted 800 million people out of poverty” as proof that its system is superior to the American one. What they ignore is that it was the Communist Party that first drove some 700 million people into poverty, and it was only the partial adoption of American-style capitalism that allowed them to climb out.
Another oft-cited statistic is that since 2000, average income in China has grown by about 700 percent, compared with only 92 percent in the United States. But the American starting point was far higher. In 1900, average annual income in the U.S. was about $450, while in China it was just $15.
By 2000, the U.S. figure had risen to $41,989, compared with only $959 in China. Today, U.S. average income is $80,610, while China’s stands at just $13,300.
China’s middle class is often estimated at 500 million people, larger than the entire U.S. population. But the definition is misleading. The Chinese government counts anyone earning as little as $7,250 a year as “middle class.” By comparison, in 2024 the average annual disposable income in the United States was about $52,000, or $4,333 per month.
China’s own National Development and Reform Commission reports that 900 million Chinese citizens had a monthly disposable income under $282, and 600 million lived on less than $143.
To qualify for public benefits in the U.S., a single-person household typically must earn $2,510 or less per month before taxes to be eligible for SNAP (food stamps). In fiscal year 2025, the average benefit per person is expected to be $187 per month, or $6.16 per day. This means that nearly all Chinese households would qualify for U.S. food assistance, and that the average food stamp allowance in America is greater than the total disposable income of most Chinese citizens.
Unlike the former Soviet Union, China provides its citizens with very limited socialized benefits. Public schools charge fees, retirement benefits are meager, and healthcare is far from free. Families must shoulder most of the costs themselves, often leaving China’s so-called middle class with less disposable income than U.S. welfare recipients.
Hellbound and Down 