State GDP per capita (user search)
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  State GDP per capita (search mode)
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Author Topic: State GDP per capita  (Read 1301 times)
Storebought
YaBB God
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Posts: 4,326
« on: February 23, 2020, 01:25:54 PM »

Normally, GDP is a function of population -- the higher the population of a state, the higher its GDP. That's true for both developed and developing economies. The most recent state GDP data strike me, though. Consider the largest states:

List of states by population

List of states by GDP

By Population
1 California    39,512,223    
2 Texas    28,995,881    
3 Florida    21,477,737    
4 New York    19,453,561    
5 Pennsylvania    12,801,989    
6 Illinois    12,671,821

By State GDP (in millions of dollars)
1 California 3,155,224    
2 Texas    1,896,063    
3 New York 1,740,745    
4 Florida    1,100,721    
5 Illinois    901,572
6 Pennsylvania    817,216

CA has a GDP 158 billion higher than TX and FL combined. This, despite TX and FL having a population 10.96 million greater than CA.

TX has a GDP 155 billion higher than NY, but has a population 9.5 million higher.

IL, a state that has been losing population almost the entire decade 2010-2020, still handily outproduces PA.

Even allowing for differences in productivity and economic concentration (FL has a particularly large low productivity service-oriented economy), these results are stark.
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Storebought
YaBB God
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Posts: 4,326
« Reply #1 on: February 23, 2020, 01:36:58 PM »

I can make a few explanations why this is the case:

(1) FL punches well below its weight as a retiree-focused state. AZ does as well.

(2) NY is the financial clearing house of the entire US and that distorts its GDP. There is a theory that nation-states with peak GDP per capita are tax havens (Luxembourg, Ireland) if not otherwise oil states (Norway, Qatar).

(3) Chicago is a wealthier city than Philadelphia. IL has higher value added manufacturing than other Rust Belt like of OH and MI despite its population loss.

It also illustrates why CA will never build more houses and why NY will never lower the rent -- it will not suffer economic consequences for doing so.
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Storebought
YaBB God
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Posts: 4,326
« Reply #2 on: February 23, 2020, 06:54:02 PM »
« Edited: February 23, 2020, 08:06:23 PM by Storebought »

Thank you contributors! I don't have the patience to tab correctly
US GDP per capita (50 states + DC ex PR and Territories) in bold:

Table of GDP per capita
District of Columbia
 New York
 Massachusetts
 Connecticut
 California
 Washington
 Delaware
 Alaska
 North Dakota
 New Jersey
 Maryland
 Illinois
 Hawaii
 Wyoming
 Colorado
 Minnesota
 Nebraska
 US
 New Hampshire
 Texas
 Virginia
 Pennsylvania
 Iowa
 South Dakota
 Rhode Island
 Ohio
 Oregon
 Wisconsin
 Kansas
 Utah
 Georgia
 Nevada
 Louisiana
 North Carolina
 Indiana
 Vermont
 Tennessee
 Michigan
 Missouri
 Oklahoma
 Florida
 Arizona
 Maine
 New Mexico
 Montana
 Kentucky
 South Carolina
 Alabama
 Idaho
 Arkansas
 West Virginia
 Mississippi
 U.S. Virgin Islands
 Guam
 Puerto Rico
 Northern Mariana Islands
 American Samoa

208284
89482
86206
80655
79854
79288
77806
75771
74936
73066
71189
71148
68978
68440
68131
67929
66140
65631
65567
65391
65274
63835
62077
60692
60322
60008
59993
59910
59789
59205
58377
57991
56972
56322
56316
56047
55944
54469
54467
52124
51249
50635
50517
49765
49093
48255
48111
47346
45602
44410
43674
40152
36744
35355
31666
28862
11394
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Storebought
YaBB God
*****
Posts: 4,326
« Reply #3 on: February 25, 2020, 06:29:41 PM »
« Edited: February 25, 2020, 06:36:56 PM by Storebought »

Quote
A lot of what buoys these GDP estimates are big financial services, legal, technology and entertainment industries anchored in New York City, Chicago, Los Angeles and Silicon Valley.  Very little of this GDP in these cities is being represented in the form of salaries/rents; its valuation is from transactions, inventories, patents and intellectual property rights.

That's a curious comment: "If we ignore the service sectors that generate the most towards GDP in service-oriented economies, then these places would have a low GDP." Should we also ignore the oil and gas contributions of the oil and gas producing states as well, since oil and gas, like finance, is well-known to contribute to GDP "tampering" like I mentioned above?

Besides, it's not like TX lacks multiple huge cities itself. That should be reflected in the economic output of the state (which is why this thread is about GDP, not about personal incomes).
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