So here’s the bottom line. If you’re a poor person in America, your income is as high as the incomes of your counterparts in Scandinavia.
But you have a much better chance of out-earning your foreign counterparts if you begin the climb the economic ladder. Yes, that means more “inequality,” but that’s why the term is meaningless. By the standards of any normal and rational person, the US system is producing better outcomes.
People here often erroneously believe only wealthy people are better off in the USA than Europe (persistent media misrepresentation perhaps?), but data such as the graph above shows it is not the case. Also, manufactured goods are more expensive in Europe and Australia than the USA (which you really notice when you move from the US to Australia).