The same $100 can buy you comparatively more in a low-price state than a high-price state, which shows the true cost of living.
The Tax Foundation released a map showing the relative value of $100 by state compared with the national average using the Bureau of Economic Analysis data.
A recent report by the US Bureau of Economic Analysis found that the value of $100 differs significantly from state to state. Past year at this time, Scott says a barrel of oil was about $100. In contrast, $100 is effectively worth the least in the District of Columbia ($84.96) Hawaii ($86.06) New York ($86.73) New Jersey ($87.34) and California ($89.05.). Florida’s rank is $101.21.
He said state taxes and regulations and access to transportation were also weighed in the rankings.
Price differences throughout the USA are considerable.
Mississippi now has the highest relative value for $100 in the country, with Arkansas, South Dakota, Alabama and West Virginia following closely behind.
States along the Gulf Coast or the Mississippi River are typically cheaper places to live, since it’s easier to ship goods there. Places with high costs of living pay higher salaries for the same jobs. Purchasing power is high in the state because finite resources are more easily available and cost less money. The higher pay is offered in order to make up for the low purchasing power.
All income to price point ratios are not created equal.
“For example, Nebraskans and Californians earn approximately the same amount in dollars per capita, but after adjusting for regional price parity, Nebraskan incomes can buy more”. “Adjusting incomes for price level can substantially change our perceptions of which states are truly poor or rich”.
How far can you stretch a dollar in Louisiana?