The United States slows its growth in 2022 1:14 (CNN Spanish) — Amid unrelenting inflation and a slowing economy, many Americans may be wondering if the state they live in is the most convenient for your finances. The answer involves evaluating multiple variables, including income. Here’s a count of the states with the highest personal income per capita, according to data from the Commerce Department. The city of Washington (District of Columbia) is, by far, where citizens receive a higher annual income per capita, according to statistics compiled by the Office of Economic Analysis of the Department of Commerce. In 2021, the figure rose to US$96,873, well above the national figure of US$63,444. This measurement (obtained by dividing state income by population) not only includes wages, but also includes homeowner income, dividends, interest, rent, and government benefits, to provide a comprehensive comparison of well-being in the different states. The states that top the list also recorded a higher per capita income than the national. Here you can see what they are. Massachusetts Annual per capita income of $82,475 Connecticut Annual per capita income of $82,082 New York Annual per capita income of $76,415 California Annual per capita income of $76,386 New Jersey Annual per capita income of $74,805 New Hampshire Income Annual per capita income of $72,003 Washington (state) Annual per capita income of $71,889 Maryland Annual per capita income of $69,266 Colorado Annual per capita income of $69,016 Alaska Annual per capita income of $67,138 At the other extreme from the table are Mississippi, which has the lowest annual income per capita, West Virginia, Alabama and New Mexico. At the state level, personal income increased by 7.4% in 2021, after having registered a rise of 6.6% in 2020, according to official statistics. The state where personal income increased the most was in Idaho (9.6%) and the one in which it increased the least was Vermont (4.5%). How does it affect the payment of taxes? Another key indicator to understand the situation in the different states is the income once the payment of taxes is deducted, which is the money that people will actually have to spend and save. If we take this variable into account, according to the Bureau of Economic Analysis, the first three places continue to be occupied by the city of Washington, Massachusetts and Connecticut. However, New York falls in the table to seventh place among the states (eighth if we take into account the city of Washington). In third place at the state level is California, followed by New Jersey and New Hampshire. Higher income vs. higher minimum wage This list shows that there are some correlations between places where the minimum wage is higher and those where per capita income is higher. This is the case, for example, of the city of Washington (District of Columbia), which heads both lists. Massachusetts, which is the highest ranked state for income, is second for minimum wage. You can check the rest of the positions here. Income in the framework of an economic slowdown The United States economy slowed in the first quarter of 2022, according to data from the same office published at the end of April. The country’s gross domestic product (GDP) ––the broadest measure of economic activity–– contracted at an annualized rate of 1.4% between January and March, in a sharp reversal of the strong growth it registered the previous year. Although a single quarter does not mark a trend, it does represent a warning signal about how the recovery is going: two consecutive quarters of declining growth meet the commonly used definition of a recession. This quarter’s results contrast with the 6.9% growth rate recorded in the last quarter of last year. Furthermore, this is the worst performance since the pandemic recession in the second quarter of 2020. Economists had forecast a 1.1% annualized growth rate, according to Refinitiv. The work factor Another key factor in this account is the labor market. The most recent statistics show that the market has almost fully recovered from the pandemic: in 2020 it lost a total of 22 million jobs and in April, with the jobs that were added, it was 1.2 million below the pre-pandemic level. With information from Anneken Tappe.
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