Study: CT is third richest state in the United States
Connecticut Is the third richest state in the United States, according to a study by WalletHub, a personal finance social network.
Connecticut tied for third place with Maryland.
There also was a tie for first place between the District of Columbia (Washington, D.C.), which was included in the study with the 50 states, and New Jersey.
In some of the sub-categories used for the study, Connecticut ranked fourth in federal taxes paid per capita, fifth in income, and fifth in per capita GDP (gross domestic product).
Of the states with the highest percentage of households earning $200,000 or more, Connecticut ranked third — behind the District of Columbia (first) and New Jersey (second).
Northeast did well, the South didn't
In general, states in the mid-Atlantic states — especially near Washington, D.C., where many federal employees live — and the Northeast did well, while states in the South did poorly.
The bottom ranked states were Mississippi (51st), West Virginia (50th), and Alabama (49th).
Other New England and nearby states to Connecticut were ranked as follows: Massachusetts (5th), New York (12th), New Hampshire (13th), Rhode Island (19th), Vermont (26th), and Maine (42nd).
Top 10 richest states
1. District of Columbia (tie)
1. New Jersey (tie)
9. California (tie)
9. Virginia (tie)
Bottom 10 states in wealth
47. New Mexico
48. South Carolina
50. West Virginia
How the study was conducted
To identify the states with the highest and lowest net worth, WalletHub ranked the 50 states and the District of Columbia based on income, GDP per capita, and federal taxes paid per capita.
Rich vs. poor
The wealth gap in post-recession America can be summarized in one cliché: the rich are getting richer, and the poor are getting poorer. In 2014, Oxfam International — a worldwide aid group — reported that “the wealthiest 1% captured 95% of post-financial crisis growth since 2009.” Within the same period, overall income levels declined for the bottom 90%.
In even deeper trouble is the middle class, whose incomes “have been either stagnant or declining since peaking in 1999,” according to the Center for American Progress. At an income of $51,939 in 2013, the average middle-class household still earns almost $4,500 less than it did pre-recession. In fact, the median household now makes less compared with how much it earned in 1989.
And while there’s no sign of improvement for the poor and middle class any time soon, the United States did report the highest number, 7.1 million, of millionaire households in 2013.
WalletHub promotes itself as a social network and website that will “help you make smarter decisions.”
It was created in 2012 and offers information on loans, bank rates, credit cards, insurance and related topics. Learn more at www.WalletHub.com.