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The latest national ranking shows that due to high prices, taxes and utility costs, the purchasing power for every 100 yuan in California is only 90 yuan, making it the least cost-effective state in the country. Southern and Midwestern states are clearly more valuable.
Yahoo News reported,California It has become a “place where the money flies”.
A latest national ranking revealed that in the “Golden State”, notorious for its high prices, $100 can buy only $90 worth of goods and services, giving the state the ignominious title of having the lowest currency purchasing power in the United States.
According to the latest analysis report released by personal finance website WalletHub, California ranks last among the 50 states of the United States. The study took an in-depth look at how hard-earned money in the United States affects Americans’ purchasing power depending on where they live.
As California residents watch their paychecks deplete due to unaffordable housing prices, groceries and daily expenses, residents of other states are apparently making better uses of their money.
In Arkansas and Mississippi, where real purchasing power is the highest, 100 yuan is worth 115 yuan. Compared with California, the difference is a surprising 25 yuan, and that doesn’t include tax cuts.
California has the highest state income tax rate in the United States, with a top-tier state income tax rate of more than 13%, a gasoline tax of more than 60 cents per gallon, as well as extremely high local sales taxes and expensive water and electric utility bills. The real value of Californians’ wages is lost well before they reach the checkout counter.
Arkansas and Mississippi are followed in the purchasing power ranking by Oklahoma and Iowa respectively (both 114 yuan), followed byalabama louisiana andSouth Dakota (Both are 113 yuan).
California’s performance in the low $90s means residents’ purchasing power is a full 10% lower than the national benchmark. By comparison, even neighboring states provide some relief: in Nevada, $100 maintains the purchasing power of exactly $100; In Arizona, the equivalent is $99, and in Oregon, it is $97.
Across the United States, only Hawaii’s dismal figures rival California’s, where $100 is worth only $91. New Jersey is second at $92, and New York and Washington are tied at $93.
The data highlight a widening economic divide between the country’s expensive coastal states and more affordable communities in the South and Midwest, where daily spending is a significantly smaller share of household budgets.
WalletHub expressed this dilemma clearly in a social media post accompanied by a colorful map of the country: “The $100 in your hand may be worth more than you think, but it may also be gone before you can say ‘checkout’.” Unfortunately for California residents, the reality is the latter.
Summary FAQ
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The report cited WalletHub analysis as saying that California ranked last among the 50 states in the United States. 100 yuan can only buy 90 yuan’s worth of goods and services, which means the purchasing power is 10% lower than the national benchmark.
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Arkansas and Mississippi are tied for best, with the same $100 purchase worth $115; Oklahoma and Iowa were close behind at $114.
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California faces high housing prices, groceries, and daily expenses, as well as a state income tax of more than 13% at the top level, a gas tax of more than 60 cents per gallon, and high local sales taxes and utility bills, which have significantly depressed the real value of wages.
