– 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

Mississippi has a lot of poverty, but don’t think Mississippi is people living in shacks with no heat and eating scraps.

Poverty in Mississippi is earning $8/hr and living in crappy living accommodations but still having the American infrastructure. Your water is probably clean. Your kids can go to school. And there is still a safety net possibly available.

Edit: So y’all can understand; shack can mean a lot of different things. When I wrote that, I meant some closet sized enclosure that’s falling apart. There are definitely run down houses that may not be inhabited.

And the reason I wrote there is a safety net possibly available is because the leadership of Mississippi makes it difficult for poor Mississippians to get the assistance they need.