You’d think that $100 has the same value everywhere. But, it isn’t always so. The Tax Foundation has recently created a wonderful infographic that shows just how much the value of $100 differs across the states in the United States, in terms of purchasing power. And the results are baffling, to say the least!
It is a well-known fact that different places in the country have completely different costs of living. Compared to South Dakota or Alabama, for instance, people residing in places like California and New York have to spend more for the same basic standard of living. Using data collected by the Bureau of Economic Analysis, the team at the Tax Foundation has listed what they are calling the “real value” of $100 across the nation’s 50 states.
The infographic, which provides a detailed overview of prices as of 2014, reveals that $100 in states such as Mississippi and Arkansas is actually worth approximately $114 to $115. The other end of the spectrum has places like Washington D.C. and Hawaii, where $100 is equivalent to only around $84 to $85. While people in these areas are often provided higher salaries to meet the higher cost of living, it doesn’t always seem to be the case. Alan Cole of the Tax Foundation explained:
Some states, like North Dakota, have high incomes without high prices.
Apart from Mississippi and Arkansas, the cheapest states include Kentucky and South Dakota, while New Jersey, California and New York belong to the same league as Hawaii and Washington D.C.