Pennsylvania, the fifth-most populous state, was ranked the 21st richest state in the U.S., according to a recent report by ChamberofCommerce.org, a resource website for small businesses.
The site says that in contrast to other, similar wealth-ranking reports, many of which use minimalistic approaches for ranking wealth (e.g., sorting by median household income), the ChamberofCommerce.org report uses a “holistic approach” that measures several variables to determine the financial standing of a state.
Variables and data used by the site to determine some of the country’s richest states include real per capita personal income (i.e., chained dollars), which is real personal income divided by the midyear population; poverty, meaning the percentage of people in poverty by state using 2- and 3-year averages; state and local general revenue (per capita); spending by state (per capita); as well as how much you need to earn to be in the top 5 percent in every state (minimum amount).
The Keystone State’s real per capita personal income was $51,418; the state’s 3-year poverty rate average was found to be 11.5 percent; per capita state spending in 2017 was $6,273; per capita personal consumption expenditures in 2018 were $44,805; and state revenue per capita was $8,925.
Pennsylvania is the fifth-most populated state, according to the U.S. Census Bureau.
In a profile on Pennsylvania’s economy, U.S. News & World Report noted that the state is known for its industrial and agricultural output.
“Pennsylvania has been one of the nation’s most important industrial centers for coal, steel and railroads, especially before War World II. The state is also famous for its leading mushroom production, which reaches 425 million pounds annually with a value of more than $330 million,” according to U.S. News.
In addition, the state is also recognized as the “Snack Food Capital of the World,” for its specialization in food processing, boasting more than 2,000 companies producing everything from canned fruit and vegetable-specialty products, to chocolate and cocoa, potato chips and pretzels. U.S. News estimates Pennsylvania’s snack, food and confectionery sales total more than $5 billion per year.
Commenting on where the poorest U.S. states are located, the report noted that the least wealthy states in the country were clustered in the South, with eight of the top 10 poorest states, led by Alabama at number 49 and Mississippi at 50.
Conversely, the report says the richest states are in the Northeast, led by Massachusetts at No. 2 and Connecticut taking the top spot as the richest.
First Published: March 8, 2020, 1:00 p.m.