How Rich the U.S. Is Compared to the Rest of the World, Visualized
The U.S. is often called the richest country in the world. But how rich is it, really? A new infographic from How Much, spotted by Digg, explores the average household income across the 36 countries in the Organization for Economic Co-operation and Development (OECD). As you can see in the graphic below, the U.S. is, on average, quite rich compared to most other countries.
The infographic explores finances on two different levels. The size of each bubble corresponds to household wealth: in other words, assets minus debts. That means it takes into account savings, stocks, and other financial assets as well as loans. (It doesn't include property holdings due to a lack of data, so it doesn't encompass the big boost of wealth that comes from say, owning a penthouse overlooking Central Park in New York City.) As you can see, the U.S.'s bubble is a pretty big outlier. On average, U.S. families have a net worth of $176,100, compared to just $128,400 in the second-wealthiest country on the map, Switzerland.
The colors of the bubbles correspond to "household net adjusted disposable income," as the OECD refers to it, which has to do with the money you bring in each year rather than what you own. That takes into account salary, income from things like stock dividends and rental properties, and government benefits (like Social Security, unemployment, food stamps, or housing subsidies). It also takes into account what each household pays in taxes, providing a snapshot of the take-home pay people actually have available to spend, rather than their pre-tax salary.
The U.S. has relatively high salaries, at $44,000 a year (the top of the scale) in disposable income. Only Switzerland, Luxembourg, and Norway have disposable income levels greater than $35,000. Mexico falls at the bottom of the scale, with average adjusted disposable incomes of less than $15,000. Most of Western Europe falls within the $25,100 to $30,000 range, while income in Eastern Europe, Israel, South Korea, and New Zealand is a little lower.
There could be a lot going on behind this data, though. The U.S. has an increasingly stratified economic system, so while the averages seem fairly high, that's probably because the few billionaires among us are skewing the numbers. The U.S. also doesn't have the social safety net offered by governments in much of the rest of the world, meaning that while we have relatively high salaries and pay lower taxes in some cases, we have to pay for things like healthcare and retirement on our own.
Read more about the OECD numbers here.