– Mississippi has similar GDP per capita ($53061) than Germany ($54291) and the UK ($51075), so why are people in Mississippi so much poorer with a much lower living standard?

Question

I was surprised to learn that poor states like Mississippi have about the same gdp per capita as rich developed countries. How can this be true? Why is there such a different standard of living?

In: Economics

Answer 1

A huge factor is existing wealth

The same income goes dramatically further when you aren’t paying rent and don’t have a car payment

Yes the average production in ms is high, but it just goes to rent