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$100 Isn't Really Worth $100 Anymore

How far is your money getting you? A new study reveals the real value of $100 in each state.

The Bureau of Economic Analysis has been gathering data for two years, studying high-price states versus low-price states. The recently published data shows how much $100 will buy you in each state.

Low-price states, where $100 is most valuable, include Ohio, South Dakota, Mississippi and Arkansas. The relative value in each state is $111.61, $114.16, $115.21 and $114.29, respectively.

High-price states, where $100 is worth the least, are New York ($86.73), California ($89.05), Hawaii ($86.06) and New Jersey ($87.34). The cost of living is incredibly high in places like California and New York, so it's not surprising to see how little $100 is worth.

Labor economists have identified a compensating differential in certain states. Places with high costs, like the District of Columbia, offer higher pay to make up for the low purchasing power of the dollar. However, some states have high incomes without the high living costs, like North Dakota.

It puts a different perspective on which states are actually rich and which are poor. The implications of this study can reach as far as minimum wage, tax brackets and other public policies. Of course, with different price levels across the country, they will change from state to state.

Image via Tax Foundation

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