The United States of America is inarguably the richest country in the world. It is one of the most well-off places accounting for almost 29.4% of the total global wealth that is roughly $105.99 trillion according to Credit Suisse’s Global Wealth Databook.
China comes second in the list acquiring 17.7% of the global wealth. As America is the richest place in the world it has more economic growth than anyplace else in the world, therefore, comprising more millionaires than anywhere else on the planet. The sole reason why the median income by the state is higher than anywhere else.
40% of the world’s millionaires reside in America due to the limitless newer possibilities to expand wealth it provides to its residents along with economic prosperity and secure placement of the wealth. No wonder every year more and more people are inclined towards migrating to the United States of America.
The drawback is that this wealth is not distributed proportionally in all corners of America. The income disparity is evident from the growing inflation in the country as the economic inequality increases across the states. More than 10 percent of Americans live below the poverty line in America.
The median income of an average American citizen is $65,904 which is way below the highest median income ranking country- Switzerland; which is a whopping $227,891.
The median income is always a good way to determine if the people of that country are enjoying all the perks of economic stability or not?? A nation needs to have a higher median income to state that the citizens are enjoying the wealth distribution and other perks attached to it.
What is the median income by the state in America?
A state’s Gross Domestic Product (GDP) determines the median income of its adult population. It is not necessary to reflect the true status of the households and adults in a state but it roughly gives an average equation median income.
The median income gives a real value to both sides of the wealth spectrum. The median income is an accurate mathematical assessment of what an average American earns through a particular term by calculating his/her average income.
Median income – affected by gender and race
Racism and gender inequality severely impacts the median income, especially in America.
This is one of the most significant factors which has contributed to determining the earning per race across America. The difference is astonishing and stark. According to reports, white Americans have the highest median income of about $98,174 in comparison to their Asian, Black, and Latin counterparts whose median income was $76,057, $46,073, and $56,113 respectively.
Gender biases are also observed as a prominent gap in the income of males and females. According to the institute for women’s policy research, women’s income was $45,097 compared to the $55,291 made by the men in the same tenure.
Household median income
The U.S Census Bureau has provided a way to compare median income by the state that is by calculating the household median income. This is a measure to calculate the gross income of a household consisting of people who are 15 years or older living in a house. This is the most widely used way to calculate median income in America.
It is divided into 2 main domains;
Median family income
Median per capita income
According to the U.S Census Bureau, the richest state by median is Columbia followed by Maryland, Massachusetts, and New Jersey whereas the states which are ruling the other side of the spectrum being the poorest states by median are Mississippi, West Virginia, and Arkansas.
