Do You Know Our Richest & Poorest States??

2015-09-29T03:20:04-04:00

Our richest & poorest states based on income may surprise you

Response by SSgt David Tedrow made Sep 29 at 2015 4:38 AM

2015-09-29T04:38:34-04:00

http://www.usatoday.com/story/money/personalfinance/2015/09/26/24-7-wall-st-richest-poorest-states/72685684/

Video: America's richest (and poorest) states

The Magnolia State has the lowest median income — $39,680. The highest? That's the Old Line State, at $73,971.

Response by SGT Jerrold Pesz made Sep 29 at 2015 12:29 PM

2015-09-29T12:29:26-04:00

Ranking states by income is somewhat misleading. You have to also factor in cost of living. I have lived in several states and there is a huge difference. Where income is high so is cost of living. On paper I took a pretty good hit on income when I moved to TN but I actually saw an increase in effective income.

Response by MAJ Private RallyPoint Member made Sep 29 at 2015 4:12 PM

2015-09-29T16:12:21-04:00

There are three different measurements, highest state income, highest income per person, or highest effective purchasing power. Each has vastly different results, the effective purchasing power is the best result for measuring personal income as it adjust the state economy number of people and the cost of living in that state.

California has the highest state income, (larger than most countries) but a very large population so they are 10th when you look at income per person.
Maryland is the highest median household income. (mostly the areas surrounding DC.)

But when you look at the real purchasing power DC has a hundred dollar purchasing power of $84.60 so things are 15.4% more expensive there than the national average. Tennessee is the best with a purchasing power rate of $110.25 so when you see the deep south states on the poor list it's not that they are poor but their money goes further.

Another interesting point is the Gini Coefficient which rates income disparity, DC is the highest, and with New England and California rating in the most income inequality.