Economics

Which Is The Richest State In The US And Why?

Based on median household income, Maryland is the richest state in the US.

Maryland is identified as the richest US state by median household income. The state borders Washington D.C., Delaware, Virginia, Pennsylvania, and West Virginia. Maryland has its capital as Annapolis while its largest city is Baltimore. The proposed reasons for Maryland’s wealth have ranged from its location near the country’s capital to its diversified economy. The state's counties of Howard and Montgomery are ranked as the second and eleventh richest counties in the US.

Economy Of The Richest State In The US

In 2013, Maryland had the most millionaires per capita in the US. The state's manufacturing sector is highly diversified such that no single sub-sector accounts for more than 20% of the total. Chemicals, electronics, and computer equipment are some of the products produced in Maryland. Several medical and educational institutions have set up shops and institutes in Maryland including John Hopkins University. The mountainous regions to the west of the state have coal deposits which support the mining industry. The Baltimore port is ranked as the eighth largest US port, and primarily handles a variety of raw materials and bulk products including fertilizers, iron ore, motor vehicles, and sugar. Maryland also prides in a large food-production industry including fishing, dairy farming and the production of peas, watermelons, tomatoes, and cucumbers. Over 400 biotechnology firms operate in Maryland as well as the defense contractor Emergent Biosolutions. The state's attractions including the natural attractions in western Maryland and the beaches of the Eastern shore support a thriving tourism industry.

Education And Employment In The Richest State In The US

Maryland's prosperity has been linked to the high education levels in its residents. Over 38% of the adults, for example, possess a college degree. In 2015, Maryland had an unemployment rate of 5.2% which is among the lowest in the nation. The state is not short on employers too in both the public and private sectors. 25% of the state's laborforce is engaged in white collar administration or technical positions. Parts of Maryland are included in the Washington Metro Area which has many opportunities for federal jobs. Fort Meade hosts the headquarters of several government agencies including the United States Cyber Command and the Central Security Service, all of which require staff. These agencies need highly educated workforce who are paid salaries above the average.

Standards Of Living In America's Richest State

Maryland has a poverty rate of less than 10%, one of the lowest of any US state. In 2014, the state’s median household income was $73,971, which was the highest in the US. About 9% of the state’s households had an income of $200,000 or more in the same year. The high median incomes in Maryland and its low poverty rates demonstrate that the state’s income distribution is one of the most equitable in the US.

What Makes Maryland The Wealthiest US State?

Maryland derives many benefits from being close to the federal government sitting in Washington D.C. It is home to numerous satellite government headquarters which provide employment and contribute to its economy. A significant number of the employees in the government agencies are top earners.

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