Why are Americans so much richer than us? (2024)

I’m in Mayfair, in my expensive menswear, in a queue with other youngish men in creative-ish careers, who are all in their expensive menswear. It’s January, and I’m queueing for the first UK live show of How Long Gone. How Long Gone is a podcast hosted by Jason Stewart and Chris Black, two Americans in their early forties. “Dumb content for smart people,” is how they accurately describe the premise. I don’t watch reality TV or Marvel movies. Instead, I listen to Black and Stewart review $22 smoothies while I lie in the bath. Other topics, as itemised in each episode’s accompanying description, have included “big salads”; “goat consummé”; “Chris realises he’s staying at a Republican hotel”; “dessert plating through the decades”; “Daniel Day-Lewis spotted in a new look”; and “exactly how much dogsitting costs”.

The pair self-identify as “bi-coastal elites”, and their show is full of in-jokes and references to their arty, media-flavoured social circle (Black used to manage a band, and now does creative consulting for fashion brands; Stewart is a DJ and occasional food writer). Though some of the guests are big celebrities, like Charli XCX and Matty Healy, more often they’re semi-famous journalists or chefs. Listening to How Long Gone is like eavesdropping on the best table at a restaurant you barely got a booking for.

Black and Stewart launched the podcast in 2020; more than 560 episodes later, they’re signed with a talent agency, reach half a million listeners a month, and do shows as far afield as Australia. The UK date earlier this year was hosted by Matches Fashion at its central London townhouse. Alexa Chung was the special guest, and afterwards, everyone drank free champagne and martinis while trying to talk to the two hosts without seeming weird. Because the thing about listening extensively to a podcast, particularly one centred on people’s personal life, is that you develop what’s been termed a “parasocial” relationship: you know all about them, but they don’t know anything about you. It leads to the deeply odd experience of introducing yourself to someone who feels the furthest thing from a stranger.

And in the case of How Long Gone, it turns the abstract numerology of GDP charts into tangible reality. By now, the facts of Britain’s relative poverty are like a catechism: we are the poorest country in northwestern Europe, and, at purchasing power parity, 20 per cent poorer than America. Take away London, and we’re poorer than every single US state. Londoners themselves have roughly 20 per cent less purchasing power than New Yorkers. Black and Stewart live lives that creative types in the UK could never afford. Extensive portions of How Long Gone are given over to the finer points of non-economy air travel, or the merits of Los Angeles salad bars where you’d be lucky to get change from $50. Even the writers they have on seem to be, if not outright affluent, at least materially comfortable.

Of course, America has long been mythologised over here as a land of riches: of Dallas’s aristocratic oil men; of diamond-drenched rappers; of endless sunny suburbs that host sitcoms like Modern Family. We also know, consciously or not, that it’s all art—it’s for show. But listening to real people describe their real lives—people who do similar things to you but live so much better—is almost uncanny. Those who watch Americans talk about their shopping habits or everyday routines on TikTok will get a similar feeling.

When the musician Caroline Polachek appeared on How Long Gone, she talked about living in London for a period, and how she felt more alien there than she did in other European capitals—speaking a foreign country’s language means you can better understand how you differ from its people. And while Black and Stewart style themselves as Anglophiles, listening about their visits to London gives the impression of rich GIs rolling into town in 1942. Stewart went to the River Café but didn’t rate it. Black went to Selfridges “and got high as hell on the vibes”, then took his first ever public bus (“A-plus”, so well done TfL) to Broadway Market, which sells “fire sandwiches”. For a break from “weird food with sauce on it”, he also had a quick solo lunch at Ottolenghi Marylebone.

Maybe this sounds a bit sour. There are plenty of rich people in London, after all. But they tend to be bankers or oligarchs’ kids. Their wealth can be batted away with cultural superiority. Being rich andcool is far more unnerving, for Brits generally have to choose one or the other. So when I’m in the bath, listening to How Long Gone, and hearing about fancy grocery shops and exclusive parties, I’m also thinking about Britain—and why we put up with being so broke.

Why are Americans so much richer than us? (2024)

FAQs

Why is the United States of America so rich? ›

The American economy is fueled by high productivity, well developed transportation infrastructure, and extensive natural resources. Americans have the sixth highest average household and employee income among OECD member states.

What makes an American rich? ›

U.S. net worth percentiles provide clearer picture

According to Schwab's Modern Wealth Survey, Americans said last year that it takes an average net worth of $2.2 million to qualify a person as being wealthy. (Net worth is the sum of your assets minus your liabilities.)

Are Americans richer on average? ›

Americans' average net worth by age

The most recent report includes data collected mainly in 2022. Between 2019 and 2022, the median net worth of U.S. households surged 37% to $192,900, according to the report. The mean, or average, net worth increased 23% to $1,063,700.

Why do people in us make so much money? ›

The United States has a stable economy, where property rights are protected, inflation is relatively low, and courts are mostly honest. Money you make may be taxed but it is unlikely to be stolen or extorted. It is fairly easy to raise money in the US, although perhaps more people should have access to capital.

What is America's main source of income? ›

Sources of Federal Revenue

So far in FY 2024, individual income taxes have accounted for 52% of total revenue while Social Security and Medicare taxes made up another 34%. Government revenue also comes from payments to federal agencies like the U.S. Department of the Interior. Have you visited a national park recently?

Are Americans richer than Europeans? ›

Adjusted for the cost of living, US GDP per capita is around 28% higher compared with the euro area, according to the World Bank; meanwhile, average annual wages are also superior in the US and labor taxes are comparatively low, according to the Organization for Economic Cooperation and Development.

Why do the US have so many millionaires? ›

America's leadership in wealth creation is spilling over into spending and investing. A report from UBS and Art Basel finds that the U.S. is the leader in global art sales, accounting for 42% of sales by value. The U.S. also leads the world in sales of the highest-priced works.

What salary in US is considered rich? ›

Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year.

What is the wealthiest country in the world? ›

Profiles of Prosperity: Seven of the Richest Countries in the World***
  • Monaco. In terms of sheer GDP per capita, Monaco's value of $234,317 USD for the year 2021 stands far above that of any other country. ...
  • Liechtenstein. ...
  • Luxembourg. ...
  • Ireland. ...
  • Switzerland. ...
  • Norway. ...
  • United States of America. ...
  • The 10 Richest Countries by Total GDP.

Are Americans suffering financially? ›

More than a quarter of US adults are struggling financially. While 72% of Americans reported “living comfortably” or “doing okay,” according to December 2023 data from the Federal Reserve. The remaining 28% were either “just getting by” (19%) or “finding it difficult to get by” (9%).

How many Americans live paycheck to paycheck? ›

How Many Americans Are Living Paycheck to Paycheck? A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. In other words, more than three-quarters of Americans struggle to save or invest after paying for their monthly expenses.

How much of net worth should be in house at age 65? ›

Therefore, you should consider the role of home equity and mortgage payments in your real estate allocation. According to some experts, the optimal range for home equity is between 20% and 50% of your net worth.

Why is the USA so wealthy? ›

The US government has been stable overall. For a long time. There hasn't been any significant corruption or infighting that typically constrains GDP. The US greatly benefited from the industrial revolution, abundant resources, the westward expansion.

Which race makes the most money in America? ›

Asian Americans, with a population of around 1.8 crore, are the highest-earning ethnic group in the USA. The median household income for Asian-Americans stands at $87,243. However, Indians are the leading ethnic group among Asian-Americans.

What pays the most in USA? ›

Top 10 Highest Paying Jobs in USA (Inc Salaries)
  1. Chief Executive Officer. The company's Chief Executive Officer (CEO) is responsible for guiding the company towards success and growth. ...
  2. Physician/ Doctor. ...
  3. Psychiatrist. ...
  4. Airline Pilot. ...
  5. Oral and Maxillofacial Surgeon. ...
  6. Orthodontist. ...
  7. Lawyer. ...
  8. Architectural and Engineering Manager.

How did the United States get so much money? ›

America is the world's largest national economy and leading global trader. The process of opening world markets and expanding trade, initiated in the United States in 1934 and consistently pursued since the end of the Second World War, has played an important role in the development of American prosperity.

Why is USA so successful? ›

Demographically, America is the only nation that is simultaneously big, young, and highly educated. The U.S. workforce is the third largest, second youngest, most educated in years of schooling, and most productive among the major powers—and it is the only major workforce that will grow throughout this century.

How did the US become so powerful? ›

In sum, America's transformation into a world power resulted from a variety of factors. Some of the most important include: American Imperialism during the late 19th century, increased involvement in global affairs, the booming of American industry, and the general economic strength of the American economy.

What is the greatest source of wealth in the United States? ›

It follows, then, that equity income, including capital gains, provided the main source—83%—of total lifetime income for the wealthiest 0.1%. In contrast, households in the bottom 90% of the wealth distribution earned 80% to 90% of their lifetime income from labor services.

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