Michigan Is the 10th Poorest State In America
With inflation continuing to rise and with no relief in sight, everyone is starting to feel like they are broke. Realistically, most of these people aren't broke but the goalposts of being middle class have moved once again. There has always been a pretty significant disparity between the economic classes, but the gaps have started to grow larger which is making many citizens concerned that they may never escape their current conditions without sacrificing their lifestyle.
One of the main factors that is looked at when establishing the wealth of someone is their yearly income, while some may be barely scraping by as 5-figure earners, others are 6,7,8+ figure earners that have no real worries in the world. Some states seem to fair better than others with salaries but their taxes, cost of living, and other expenses normally balance out. With that being said, looking at income per capita gives you an idea of how poor or rich a state truly is, and Michigan is in the bottom 10 in the country.
In 1999 Michigan was ranked as the 16th best state for annual income based on per capita but now that number has dropped all the way down to 39th as we are nearing the worst of the worst. We aren't quite down to the Mississippi ranks, who is at the bottom of the list, but some believe if we don't make changes soon that will be the case for the good ole mitten state.
The Facts About Michigan Income Per Capita
The researchers analyzed the state’s per capita income from 1999 a peak year for Michigan through 2022, defining income as a combination of earnings, passive income from investments and transfer payments, such as Social Security. Grimes found that national net earnings increased by a little over $9,000 per capita but in Michigan, the increase was about $2,500.
Looking ahead, the report said, if personal income per capita grows in each state at the same rate over the next 23 years as it did between 1999 and 2022, Michigan would end up as the 48th poorest state, above only Alabama and Mississippi. So, what does Michigan need to do to avoid this?
What Michigan Can Do To Fix This
Glazer said Michigan must make two significant changes to reverse its decline. The first is encouraging more high school graduates to pursue a bachelor’s degree or higher, since high-growth, high-wage jobs are based on knowledge- (versus production) based skills. Second, Michigan should more aggressively market vibrant places namely, its cities that are already attractive to young, more educated workers so the state can increase its share of higher-wage jobs.
The Income Needed to Afford Rent in Each Michigan County
Gallery Credit: Kristen Matthews
Ranking 531 Michigan School Districts: Spending v Income
Gallery Credit: Scott Clow
All the States with A State Income Tax
Gallery Credit: Toni Gee, TSM