– 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

Everyone here is going completely in the wrong direction, incoming inequality is not a major factor in why Mississippi is poorer than Germany of the UK. The question OP asked is leading people in the wrong direction because it works on the assumption that GDP per capita translates to personal incomes. It does not.

Mississippi has a median income of $28,732. Germany has a median income of $53,666 and the UK has a medium income of $45,819.

Mississippi is poorer because the people there make WAY less money. Why that’s the case is a much bigger (but different) topic.