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> If you look at real purchasing power, California ranks #37 That's not PPP. It's a measure created by the Tax Foundation think tank and published by AEI, both
by pcwalton 8y ago
> If you look at real purchasing power, California ranks #37
That's not PPP. It's a measure created by the Tax Foundation think tank and published by AEI, both of which obviously have an ideological agenda. Their results seem questionable to me: New York is in the bottom half, and Oregon and Hawaii are below impoverished Mississippi.
I'd prefer to use numbers from the US Bureau of Economic Analysis. Here [1] is a table of results pretty much straight from there. (You can find the simple methodology if you scroll down.) According to that data, California's per-capita income rank actually goes up when you take cost of living into account.
[1]: https://www.usatoday.com/story/money/economy/2018/05/10/cost-of-living-value-of-dollar-in-every-state/34567549/ https://www.usatoday.com/story/money/economy/2018/05/10/cost...
- rayiner 8y agoThe Tax Foundation article uses Bureau of Economic Analysis data as well. The difference is that the Tax Foundation article also accounts for taxes. (Hence my digression on why Californians' lower purchasing power is not, unlike in Europe, offset by robust public services.) Note that your reference has California at #25 for personal income, and #21 adjusted for cost of living. That seems odd...