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There are states like New Jersey, Maryland and Connecticut, which have the highest median incomes in the nation, and are generally more expensive to live in than most other states. But then, there are states like Mississippi, West Virginia and Arkansas, which have the lowest median incomes in the nation, and are generally cheaper to live in than most other states. Why does this phenomenon occur?
My theory is that it has to do mainly with the laws of supply and demand. For example, Maryland has much more limited space, better schools, better healthcare services and more amenities than Mississippi. Since most people would rather have good schools good healthcare and other amenities, a place like Maryland is a lot more expensive than Mississippi, which is lacking in these things. So, what happens is, people demand housing and jobs in Maryland, which drives prices up, and therefore drives salaries up. On the other hand, Mississippi has no shortage of space and less mass appeal (to most people), so supply exceeds demand, and therefore, goods and housing are cheaper.
Is my theory correct? Flawed? I mean, what is the core reason as to why the median household income in MD is around $70K, but in MS it's only around $40K?!
I live in Putnam county NY where trailers are bought for 200,000 in recent years while in Buffalo NY 3 bed room houses were going for 30,000 in recent years.
Of course my county is the 11th highest income county in the U.S. Was the fastest growing county in NY for a while. Which increases the prices & demand.
While Buffalo has lost a lot of jobs & lost a lot of people who have left to go else where as more people were leaving than coming in.
They had low housing demand & thus had to often sell at rock bottom prices for houses.
If a place has more income then there is more demand to move there to get that higher income & with that comes an increase demand for expenses & housing.
Higher taxes also contributes some. Especially to the rent prices & store prices as if they have higher taxes to pay then they have to raise their rents or store prices to pay those higher taxes.
Because high income states have higher incomes they feel they can afford to have higher taxes & more programs but that increases the prices too.
Yes many high income states are more populated which raises prices as there are housing shortages more often.
There are states like New Jersey, Maryland and Connecticut, which have the highest median incomes in the nation, and are generally more expensive to live in than most other states. But then, there are states like Mississippi, West Virginia and Arkansas, which have the lowest median incomes in the nation, and are generally cheaper to live in than most other states. Why does this phenomenon occur?
My theory is that it has to do mainly with the laws of supply and demand. For example, Maryland has much more limited space, better schools, better healthcare services and more amenities than Mississippi. Since most people would rather have good schools good healthcare and other amenities, a place like Maryland is a lot more expensive than Mississippi, which is lacking in these things. So, what happens is, people demand housing and jobs in Maryland, which drives prices up, and therefore drives salaries up. On the other hand, Mississippi has no shortage of space and less mass appeal (to most people), so supply exceeds demand, and therefore, goods and housing are cheaper.
Is my theory correct? Flawed? I mean, what is the core reason as to why the median household income in MD is around $70K, but in MS it's only around $40K?!
Your analysis would be correct, my good man.
Simply put, more people want to live in Midtown Manhattan as opposed to Buttcrack, Mississippi, so things would cost more and less in those cities, respectively.
Conversely, you don't need as much money to get by in Buttcrack as you would in Midtown, so you would need to earn less income and more income, respectively.
Simply put, more people want to live in Midtown Manhattan as opposed to Buttcrack, Mississippi, so things would cost more and less in those cities, respectively.
Conversely, you don't need as much money to get by in Buttcrack as you would in Midtown, so you would need to earn less income and more income, respectively.
LOL @ Buttcrack Mississippi.
In all seriousness Manhattan probably has way more poverty than Mississippi.
I mean yeah technically maybe not.
When you adjust for the much higher expenses than Manhattan is certainly far worse with poverty.
Also you have more job opportunity.
If you work in Mcdonalds in Manhattan or Mcdonalds in Buttcrack Mississippi then your money will go so much further in Buttcrack Mississippi.
Plus it is only a rich majority who see Manhattan as more desirable.
Some people see the beautiful land scapes, clean crisp air, peace, quiet, rural charm, hospitality, friendly nature & cheap prices of rural areas to be much better.
Simply put, more people want to live in Midtown Manhattan as opposed to Buttcrack, Mississippi, so things would cost more and less in those cities, respectively.
Conversely, you don't need as much money to get by in Buttcrack as you would in Midtown, so you would need to earn less income and more income, respectively.
Sums up the answer to the question with a comical value in place.
Simply put, more people want to live in Midtown Manhattan as opposed to Buttcrack, Mississippi, so things would cost more and less in those cities, respectively.
Conversely, you don't need as much money to get by in Buttcrack as you would in Midtown, so you would need to earn less income and more income, respectively.
It's gotta be better than Buttcrack, Mississippi though.
And what part of Manhattan do you visit?
I have visited all of Manhattan pretty much LOL.
I live in Putnam county so I have been to Manhattan many times.
I loved Manhattan more as a kid actually. The excitement & all.
Now sometimes when I am in Manhattan it just feels dirty & my friend also said it when we were down there how it is dirty.
It really does have a lot of dirt to it. Most of the city does.
I mean Little Italy & Greenwich village are very pleasant & clean.
Even Mid town has a dirty feel to it. Just all of the fumes of the buses, homeless people & you see garbage piled out to be taken out.
(Of course I mean it is so densly populated)
Still it feels dirty to me but of course exciting too.
I live in Putnam county so I have been to Manhattan many times.
I loved Manhattan more as a kid actually. The excitement & all.
Now sometimes when I am in Manhattan it just feels dirty & my friend also said it when we were down there how it is dirty.
It really does have a lot of dirt to it. Most of the city does.
I mean Little Italy & Greenwich village are very pleasant & clean.
Even Mid town has a dirty feel to it. Just all of the fumes of the buses, homeless people & you see garbage piled out to be taken out.
(Of course I mean it is so densly populated)
Still it feels dirty to me but of course exciting too.
Ah, I see. To me, I don't even realize all the garbage and stuff unless I'm in like Chinatown lol. The excitement and overwhelming amounts of things to do just gets me every time. Gotta love it.
Glad you enjoy it though!
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