Eight of the poorest states are in the South, an area dependent on agriculture. The South used to have many textile and clothing manufacturers that were located near cotton fields. Foreign countries could make the products more cheaply, despite being further away from the raw materials. As a result, China and India took these higher-paying jobs. The comparison between the richest and poorest states is striking. In 2018, the richest state was Maryland. Its median household income was $83,242. In West Virginia, the poorest state, it was $44,097. Both are significantly different from each other and the national average of $61,937. Despite their discrepancy, both averages are within the middle-class. The Pew Research Center defines middle-class income as being between 67% and 200% of the nation’s median household income. As a result, households making less than $41,498 are low income, while those earning more than $123,874 are high income.
Top 10 Richest States
Here are the top 10 richest states based on U.S. Census data from 2018. The number reported is for median household income. The wealthier states also have better education scores. If you want to live in these states, you’re better off making more than the median. The cost of living is also higher in these states.
10 Poorest States
Most of the nation’s poorest states are in the South. They struggle because they have historically been reliant on agriculture, especially cotton and tobacco. Demand has fallen as consumers have turned to synthetics. Tobacco use has fallen due to declines in smoking rates. The South doesn’t have a lot of manufacturing. This industry creates more jobs than farming or real estate. Manufacturing jobs are some of the highest-paid jobs in America. In Depth: Median Income per Person | Average Net Worth
