Material World – Paycheck to paycheck
We’re used to hearing that the overall standard of living in the West is significantly higher than in the countries that make up what used to be known as the ‘Third World’ but are now commonly referred to as the ‘Global South’. For many of these, most sources indicate progress in expanding access to basic necessities such as water, sanitation and health facilities. Yet a recent joint report by the World Health Organization and the United Nations Children’s Fund estimates that approximately 1 in 4 people globally, or close to 2.1 billion, lack access to clean drinking water and that this contributes to roughly 3.5 million deaths per year, nearly 400,000 of these children under five.
More broadly, according to an Oxfam International report from June 2025, 3.7 billion of the world’s population, or around 45 percent, live in conditions of moderate or severe food insecurity with over 700 million living on less than 2.15 dollars per day and 3.4 billion living on less than 5.50 dollars per days. This means that many are unlikely to have the money to eat regularly and so will often skimp on food or skip meals. In addition, the business data website Statista has reported on a United Nations estimate that around 1.1 billion people worldwide, including around 50 percent of the urban population in sub-Saharan Africa and South Asia, are living in slums, described as ‘areas of self-built, unsanitary housing where extreme poverty is rife’.
How does all this compare to the standard of living in what is seen as ‘the richest country in the world’, the USA? We would expect it to be a lot higher overall, and indeed it is. But what are things actually like? Wildly differing figures on living standards, poverty and deprivation are to be found depending on the sources you consult. For example, the CNN Business website recently reported on a Bank of America analysis which estimated that around 1 in 4 (24 percent) of American households are barely getting by – living ‘paycheck to paycheck’, as they put it.
The bank’s statisticians combed through data on millions of customers to track how much they spent on basics such as housing, groceries, childcare and utilities and found it constituted over 95 percent of their income ‘leaving little to nothing left over for the “nice-to-have” things like going out to dinner or taking a vacation, let alone saving’. One of their interviewees who had a degree but was working in a construction business about to shut down is quoted as saying ‘to be 34 and living paycheck to paycheck with no savings, things are pretty crappy right now’.
However, a different survey came up with a quite different result, which was that the proportion of workers living paycheck to paycheck was not 24 percent but 67 percent. This figure emerged from the Financial Wellness in the Workplace Report by the PNC Bank, based on workers aged 21 to 69 working full time at companies with more than 100 employees. It painted a picture of workers struggling to cover everyday expenses, especially with cost of living currently outpacing wage growth. A Newsweek report on this survey quoted Taylor Nelms, vice-president of research and insights at the Financial Health Network, as saying: ‘The percentage of U.S. households that say they spend more or the same as they bring in has been remarkably consistent, hovering around 50 percent over the past several years but right now it’s compounded by high housing costs, insurance premiums, and the return of student loan payments. These are the areas where households feel most squeezed’.
There’s clearly a big difference between these survey results, but whichever figure you take as reliable, it’s clear that many millions of people in the world’s ‘richest country’ are not only not rich but are materially insecure and struggling to keep their heads above water, with some in particularly straightened circumstances. The CNN report highlights some of the typical symptoms of this – people falling behind on their bills, minimum credit card payments being made, an increased percentage of borrowers late on their car loans (referred to as ‘a clear sign of financial distress, especially since car loans are historically the last payments Americans are willing to miss’), and people filing for bankruptcy having incurred large medical debts while ill. Nor does any of this take into account the undoubtedly worse conditions of those who have no employment at all or are homeless or not registered to work. The current estimate of the number of unemployed people is 4.4 percent of the workforce, so 7.6 million people living in even worse circumstances than those ‘just getting by’.
What conclusions can we draw from this? First and foremost that, though wage and salary workers in what is usually considered the most advanced part of the Western world are undoubtedly better off on the whole than their counterparts elsewhere, this does not prevent many of them from suffering poverty and insecurity. And this in a world which, if it were organised rationally (ie, with a system aimed at catering for the needs of all and not the profits of a few), could provide abundantly for all of its 8.3 billion population. Already in fact the world possesses enough productive capacity to eliminate global poverty many times over. Yet this can never happen as long as we have a system – the market system – which ensures vast wealth inequality between the tiny minority of people who own most of the resources and the large majority who own little more than their skills and energies and their ability to sell these for a wage or salary.
It is no kind of aberration, therefore, that the USA has, according to Forbes Magazine, 905 billionaires with a combined wealth of 7.8 trillion dollars and that, according to Federal Reserve data, the top 1 percent of households in the United States hold 30.5 percent of the country’s wealth, while the bottom 50 percent hold 2.5 percent. Rather it is the inevitable consequence of a system (production for profit) that has no mechanism for meeting the basic needs of the whole of humanity and will always fail to do that. This being the case, it is as clear as it can possibly be that the majority of the world’s workers need to take collective and democratic political action to bring that system to an end and replace it by one that will be cooperative, moneyless, wageless and based on free access and production for use.
HKM
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