23 Things they don't tell you about Capitalism

Proponents of free-market economics often describe the US as having the highest standard of living in the world, considering income per capita as well as the strength of the national currency. However, Chang suggests that this outlook is overly simplistic, since the US lags behind other countries in income equality, healthcare, crime, work-life balance, and other key areas. As of 2007, seven countries had higher income per capita, and the strength of the dollar is mainly due to the supply of cheap labor through immigration.

Admittedly, when converting to an imaginary international dollar that economists use to compare purchasing power between countries, the average US citizen has the highest purchasing power of any country except for the mini state of Luxembourg. However, Chang reiterates that this is possible only because high income inequality in the US enables it to obtain cheap labor, lowering the price of services but also the standard of the living of the employees who provide those services. Finally, he points out that in terms of per capita income per hour worked, workers in the US fall behind several European nations, which may further detract from the quality of life by reducing leisure time.