The US economy is one of the largest economy in the world. The country’s entrepreneurial culture and a financial system that promotes entrepreneurial activities with world class amenities and research universities has helped the country to become a superpower among the very few superpower nations in the world.
The US Census Bureau keeps a record of a nationwide population survey and found that there was a rise in the number of lower and upper middle class people while there was a fall in the middle class where their annual income was estimated to be between $42000 to $125000.
However, the growth of a state’s GDP depends on the annual income per person. Here are the richest states in America based on the average household GDP in the year 2018.
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10. Washington DC- $64,129
Washington being the highest apple producing state in America produces 64% of the nation’s overall apples and 20% of the state’s agricultural receipts. It’s also famous for its wholesale trade of automobiles, spare parts, computers and has several major retailers Starbucks, REI and Amazon.com which provide jobs to thousands of people in the state. Washington has no corporate nor income tax but has one of the highest rent and wages in the United States. Washington’s income grew at a rate of 3.7% in 2016 which is over twice.
9. California- $64,500
With an overall economy of $2.6 trillion, California is ranked as the 6th largest economy behind United Kingdom. Since the country’s financial crisis in 2008, California has greatly developed the country’s economy and provided clean energy, protection for undocumented immigrants and government accountability. California also has one of the largest research based universities in the world called Caltech where hundreds of people from all over the world pursue their career in research and technology contributing to the overall development of the state. California is also home to Hollywood which is the largest international film industry in the world and contribute to the overall GDP of the state.
8. Virginia- $66,262
Virginia has the highest number of independent cities in the country and the wealthiest jurisdictions based on median income. It is also considered one of the best states for establishing a business with a population of hard working people that contribute for the development of the state and improve the quality of life. About 4.6% of Virginia’s workforce is employed by the federal government.
7. New Hampshire- $70,303
New Hampshire earns most of its economic wealth from leasing, real estate and finance that accounts for 24.2% of the state’s GDP. It is home to one of the largest manufacturing companies like SMTH (Smart Manufacturing/ High Technology) which is also the most important sector of the state’s economy. New Hampshire also depends on its natural resources that attract thousands of tourists every year from all over the world and is also a major hub for biomedical research, all of which contributes to the average GDP in a household in New Hampshire.
6. Massachusetts- $70,628
Massachusetts witnessed a rise in GDP by 4 percent that compared to the national 2.6 percent over the same period. People’s wages were estimated to an increase of 24 percent annually that raised the average household GDP in 2018. Finance, insurance and leasing are the major operations that take place in this state and professional business is its second largest operation, which makes it one of the richest states in America.
5. Connecticut- $71,346
Information is the largest contributor to the GDP growth of Connecticut followed by professional business services. Although, recently Connecticut has suffered some withdraws from important public services due to major companies leaving the state and causing a corporate migration crisis. This was due to the state’s heavy tax systems that caused major companies like Aetna and GE to flee. But due to its small population and high earning families, it makes its way to the top 5 in the richest American states.
4. New Jersey- $72,222
New Jersey is considered one of the richest off-shore tax shelter in the country that earned about $122.8 trillion in the past year according to Boston Consulting Group’s wealth report in 2012. It’s one of the most tourist intensive states in the country with its glittering capital city of St. Helier and beaches surrounded by yachts. New Jersey has financial services lined with almost every bank in the world.
3. Alaska- $73,355
Alaska is a state that’s rich in natural resources like timber and oil that largely contributes to as the source of primary fuel in major industries and in households. Alaska also has a permanent fund scheme that pays a certain amount to its residents every year. Alaska also produces family businesses and the unemployment rate in this state is very low. Thus, being the third richest American state. Alaska is the largest state with the second smallest population with about 742,000.
2. Hawaii- $73,486
Hawaii majorly lies on tourism to boost its economy. With thousands of tourists visiting every year, it’s glittering city and beautiful beaches makes it one of the biggest attractions of America. The hotel industry is one of the biggest businesses in the state. With exotic food and ambient quality of life, the state of Hawaii is also quite pricey to live in. Hawaii also faces a major job increase in the private sector in 2018 that provided employment to thousands of residents and increased the overall GDP of the state.
1. Maryland/ District of Columbia- $75,847
Maryland is considered the richest state per household income with people having over $1 million in investible assets. Maryland has a poverty rate of less than 10% and is the lower than any state in the country. Due to its prosperous quality of life and high levels of education among residents, it is estimated that more that 38% of its residents have legal college degrees and is also home to some of the nation’s highest paying government occupations. With so many amenities and government aid, Maryland makes its way to the richest state in America.
America is considered as a land where dreams come true. It does effectively stand up to its reputation as a superpower among all the other nations where states work individually providing the best facilities to its people. With newer and better ways of developing the country and providing financial aid to a maximum number of people, the rate of which the overall GDP per household will continue to rise over the years to come.