Wednesday, August 27, 2014

The Relative Value of $100: A Countrywide, and Statewide, Comparative Look

The Tax Foundation recently recently released a map showing the relative value of $100 in each state of the US. Because average prices for similar goods are much higher in California or New York than in Mississippi or South Dakota, the same amount of dollars will buy you comparatively less in the high-price states, or comparatively more in low-price states. Using data from the Bureau of Economic Analysis they adjusted the value of $100 to reflect how prices are different in each state.

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 As you can see, $100 nationally is only worth about $86 worth of purchasing power in New York State.

They also did a similar map for the MSAs (think urban areas) in the country. Herkimer and Oneida Counties combined compose the Utica Rome MSA. The Utica Rome MSA actually has a purchasing power of $107.53 for that same $100 mentioned above. This would suggest that the cost of living is much lower here than for the rest of NY State.