One of the first things that happen when we become adults is that one can spend money with the speed of light. What we also realize is that the value of money depends on many factors, the most important one - where we live. It's obvious that there are huge differences between the value of (for example) 100 American dollars in different countries compared to the costs of living, but there are naturally differences even inside of the USA. Let's see the comparison and findings for the real value of $100 in each US state made by The Bureau of Economic Analysis.
The Tax Foundation Map
Here we can see entire map of the USA and the estimated value of $100. For example, the sum is worth a lot less in New York and California. But what does this actually mean?
Example of California and Nebraska
People in Nebraska and California earn more or less the same money per capita but comparing this to the costs of everyday life in these regions, it turns out that people in Nebraska earn "more" because they can buy more with their incomes.
According to the Map, Washington, D.C. Is the Most Expensive
The relative value of $100 is $84.67.
It's Closely Followed by New York
High costs of everyday life (food, rent, bills) lower the value of $100 to its relative value of $86.43.
Where the relative value is $86.43.
On the Other Hand, States Where You Can Buy the Most with $100 Are - Mississippi
With the estimated value of $115.34 .
Where it is $114.29.
If We Compare Mississippi and Washington, D.C. In Amounts of Money One Earns Per Year after Taxes
We come to pretty obvious differences - if you earn $50,000 in Mississippi, you should earn $68,000 in District of Columbia - in order to have same life standard.
A Relation Between Prices and Income
It is quite normal that incomes in places (especially cities) with high costs of everyday life will be higher. Or the other way around, if you live in a place where the rent, food or just anything costs more than in some neighboring state, you will most probably have a higher salary for the same job.
But in North Dakota
Incomes are high, but prices are not. This relation can be an indicator of which states are rich indeed and which are not.
So, What Do You Think Is the Best Place to Live in the USA?