Monday, January 2, 2017

Comparing Purchasing Power by State

What a dollar buys in Omaha is more than what a dollar buys in New York. And what a Euro buys in Athens isn't the same as what $1.08 (currency exchanged) buys in Omaha either. Thus the adjustment of Purchasing Power Parity. PPP adjusts for these factors and really tries to compare apples to apples, or at least what it takes to buy an apple somewhere.

With that in mind here is a select table of GDP per capita on a PPP basis for 2014.

North Dakota                             $72,719
Wyoming                                     69,993
Massachusetts                              67,515
California                                     58 901
Texas                                            58,748
Ohio                                              49,049
Missouri                                        45,721
Sweden                                          45,183
West Virginia                                40,003
United Kingdom                            39,762
France                                            38,847
Mississippi                                     34,784
South Korea                                   34,355
Greece                                            25,877
Mexico                                           17,107
China                                              13,206

One of the obvious takeaways is that even the poorest of the United States (Mississippi) is almost as wealthy as Sweden, and considerably more so than Mexico or China (which Donald Trump says are "beating us").


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