IMO, The US has crumbling infrastructure, corrupt government, dangerous cities, and a lot of homelessness, among so many other problems. Hell, millions of people in the US don’t even have power right now.
What’s the difference?
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1.2. and 3. worlds are terms from the cold war.
Languages evolve over time, all dictionaries now have OPs use of the word as the first definition.
I guess I still go by the original definition. There are other words that offer more detail anyway - kakistocracy, gerontocracy, corporatocracy, kleptocracy, etc.