In the third quarter of 2020, real GDP increased in all 50 states and the District of Columbia. According to the Bureau of Economic Analysis, the United States’ overall real GDP expanded at a rate of 33.4 percent each year. The annual growth rate of real GDP in each state ranged from 19.2 percent in D.C. to 52.2 percent in Nevada. In the second quarter of 2020, real GDP decreased significantly in all 50 states and D.C., ranging from -20.4 percent in D.C. to -42.2 percent in Hawaii and Nevada.
The considerable increases in GDP from Q2 to Q3 indicate ongoing attempts to reopen enterprises and resume economic activity that had been halted due to the COVID-19 outbreak. Healthcare and social assistance, durable goods manufacturing, and lodging and food services were the biggest contributors to the increase in real GDP at the national level. Healthcare and social aid grew at a rate of 75.1 percent nationwide, and was the largest contributor in 26 states.
California ($3,120,386), Texas ($1,772,132), New York ($1,705,127), Florida ($1,111,614), Illinois ($875,671), Pennsylvania ($788,500), Ohio ($683,460), Washington ($632,013), Georgia ($627,667), and New Jersey ($625,659) are the ten states with the highest GDPs (in millions of dollars). California, Texas, New York, and Florida are the four states that contribute more than $1 trillion to the US GDP. With a GDP of $3,120,386,000,000, California has the highest GDP of any state, accounting for nearly 14.7 percent of the country’s overall GDP. With $1,772,132,000,000 in GDP, Texas is in second place, accounting for 8.4% of the country’s total.
What is the United States’ current GDP in 2021?
In addition to updated fourth-quarter projections, today’s announcement includes revised third-quarter 2021 wages and salaries, personal taxes, and government social insurance contributions, all based on new data from the Bureau of Labor Statistics Quarterly Census of Employment and Wages program. Wages and wages climbed by $306.8 billion in the third quarter, up $27.7 billion from the previous estimate. With the addition of this new statistics, real gross domestic income is now anticipated to have climbed 6.4 percent in the third quarter, a 0.6 percentage point gain over the prior estimate.
GDP for 2021
In 2021, real GDP climbed by 5.7 percent, unchanged from the previous estimate (from the 2020 annual level to the 2021 annual level), compared to a 3.4 percent fall in 2020. (table 1). In 2021, all major components of real GDP increased, led by PCE, nonresidential fixed investment, exports, residential fixed investment, and private inventory investment. Imports have risen (table 2).
PCE increased as both products and services increased in value. “Other” nondurable items (including games and toys as well as medications), apparel and footwear, and recreational goods and automobiles were the major contributors within goods. Food services and accommodations, as well as health care, were the most significant contributors to services. Increases in equipment (dominated by information processing equipment) and intellectual property items (driven by software as well as research and development) partially offset a reduction in structures in nonresidential fixed investment (widespread across most categories). The rise in exports was due to an increase in products (mostly non-automotive capital goods), which was somewhat offset by a drop in services (led by travel as well as royalties and license fees). The increase in residential fixed investment was primarily due to the development of new single-family homes. An increase in wholesale commerce led to an increase in private inventory investment (mainly in durable goods industries).
In 2021, current-dollar GDP climbed by 10.1 percent (revised), or $2.10 trillion, to $23.00 trillion, compared to 2.2 percent, or $478.9 billion, in 2020. (tables 1 and 3).
In 2021, the price index for gross domestic purchases climbed 3.9 percent, which was unchanged from the previous forecast, compared to 1.2 percent in 2020. (table 4). Similarly, the PCE price index grew 3.9 percent, which was unchanged from the previous estimate, compared to a 1.2 percent gain. With food and energy prices excluded, the PCE price index grew 3.3 percent, unchanged from the previous estimate, compared to 1.4 percent.
Real GDP grew 5.6 (revised) percent from the fourth quarter of 2020 to the fourth quarter of 2021 (table 6), compared to a fall of 2.3 percent from the fourth quarter of 2019 to the fourth quarter of 2020.
From the fourth quarter of 2020 to the fourth quarter of 2021, the price index for gross domestic purchases climbed 5.6 percent (revised), compared to 1.4 percent from the fourth quarter of 2019 to the fourth quarter of 2020. The PCE price index grew 5.5 percent, unchanged from the previous estimate, versus a 1.2 percent increase. The PCE price index grew 4.6 percent excluding food and energy, which was unchanged from the previous estimate, compared to 1.4 percent.
What state in America will be the wealthiest in 2020?
Using median household income to determine which states are the wealthiest looks very different. Because population has a significant impact on GDP, the states with the highest GDPs tend to be the largest, as shown below. Except for Florida and New York, three of the five richest states’ GDPs correspond to their population ranks. While New York has the third-largest GDP, Florida has the fourth-largest population. For comparison, we’ll also highlight their different median earnings.
California
California, with a GDP of $3,120,386,000, is the most populous state in the country. California has the sixth highest median household income in the country, at $80,440.
Texas
Texas, the country’s second-largest state by population, is also the country’s second-richest state in terms of GDP. The state of Texas has a GDP of $1,772,132,000. The median household income in Texas is $64,034, which is slightly lower than the national average.
New York
With a GDP of $1,705,127,000.0, New York is the third-richest state in the United States. With a median household income of $72,108, New York ranks 15th among all states.
What accounts for Texas’s high GDP?
3 In terms of employment and total energy production, Texas leads the way among states in the energy sector. Energy companies also contribute a disproportionate amount of GDP to overall employment, highlighting the industry’s importance to the Texas economy.
How much debt does America have?
“Parties in power have built up the deficit through increased spending and poorer tax collection, regardless of political affiliation,” says Brian Rehling, head of Global Fixed Income Strategy at Wells Fargo Investment Institute.
While it’s easy to suggest that a specific president or president’s administration led the federal deficit and national debt to move in a given direction, it’s crucial to remember that only Congress has the power to pass legislation that has the greatest impact on both figures.
Here’s how Congress responded during four major presidential administrations, and how their decisions affected the deficit and national debt.
Franklin D. Roosevelt
FDR served as the country’s last four-term president, guiding the country through a series of economic downturns. His administration spanned the Great Depression, and his flagship New Deal economic recovery plan aided America’s rebound from its financial abyss. The expense of World War II, however, contributed nearly $186 billion to the national debt between 1942 and 1945, making it the greatest substantial rise to the national debt. During FDR’s presidency, Congress added $236 billion to the national debt, a rise of 1,048 percent.
Ronald Reagan
Congress passed two major tax cuts during Reagan’s two administrations, the Economic Recovery Tax Act of 1981 and the Tax Reform Act of 1986, both of which reduced government income. Between 1982 and 1990, Congress passed Acts that reduced revenue as a percentage of GDP by 1.7 percent, resulting in a revenue shortfall that contributed to the national debt rising 261 percent ($1.26 trillion) during his presidency, from $924.6 billion to $2.19 trillion.
Barack Obama
The Obama administration oversaw both the Great Recession and the recovery that followed the collapse of the mortgage market throughout his two years in office. The Economic Stimulus Act of 2009, which pumped $831 billion into the economy and helped many Americans avoid foreclosure, was passed by Congress in 2009. When passed by a strong bipartisan vote, congressional tax cuts added extra $858 billion to the national debt. During Obama’s two terms in office, Congress increased the national deficit by 74% and added $8.6 trillion to the national debt.
Donald Trump
Congress approved the Tax Cuts and Jobs Act in 2017, slashing corporate and personal income tax rates, during his single term. The cuts, which were seen as a bonanza for the wealthiest Americans and corporations at the time of their passage, were expected by the Congressional Budget Office to increase the government deficit by $1.9 trillion at the time of their passing.
The federal deficit climbed from $665 billion in 2017 to $3.13 trillion in 2020, despite the Treasury Secretary’s prediction that the tax cuts would reduce it. Some of the rise was due to tax cuts, but the majority of the increase was due to successive Covid relief programs.
The public’s share of the federal debt has risen from $14.6 trillion in 2017 to more than $21 trillion in 2020. The national debt is made up of public debt and intragovernmental debt (amounts owed to federal retirement trust funds such as the Social Security Trust Fund). It refers to the amount of money owed by the United States to external debtors such as American banks and investors, corporations, people, state and municipal governments, the Federal Reserve, and foreign governments and international investors such as Japan and China. The money is borrowed in order to keep the United States running. Treasury banknotes, notes, and bonds are included. Treasury Inflation-Protected Securities (TIPS), US savings bonds, and state and local government series securities are among the other holders of public debt.
“The national debt is growing at a rate it hasn’t seen in decades,” says James Cassel, chairman and co-founder of Cassel Salpeter, an investment bank. “This is the outcome of the basic principle of spending more money than you earn.” Cassel also points out that while both major political parties have spoken seriously about reducing the national debt at times, discussions and strategies have stopped.
When both sides pose discussing raising the debt ceiling each year, the national debt is more typically utilized as a bargaining chip. The United States would default on its debt obligations if the debt ceiling was not raised. As a result, Congress always votes to raise the debt ceiling (the maximum amount of money the US government may borrow), but only after parties have reached an agreement on other legislation.
How is the GDP of the United States calculated?
Gross domestic product (GDP) equals private consumption + gross private investment + government investment + government spending + (exports Minus imports).
GDP is usually computed using international standards by the country’s official statistical agency. GDP is calculated in the United States by the Bureau of Economic Analysis, which is part of the Commerce Department. The System of National Accounts, compiled in 1993 by the International Monetary Fund (IMF), the European Commission, and the Organization for Economic Cooperation and Development (OECD), is the international standard for estimating GDP.
What is the GDP of London?
London’s GDP from 1998 to 2019 In 2019, London’s gross domestic product was estimated to be over 503 billion British pounds, an increase of almost 20 billion pounds over the previous year.
Which state in the United States is the poorest?
This list of United States states and territories by poverty rate includes the 50 states, the District of Columbia, and the territory of Puerto Rico, as well as the poverty rate of their respective populations. American Samoa, Guam, the Northern Mariana Islands, and the United States Virgin Islands are the four additional inhabited US territories.
The main list’s data comes from the American Community Survey, a five-year survey conducted by the United States Census Bureau from 2016 to 2020. The American Community Survey is a massive annual demographic survey that uses mailed questionnaires, telephone interviews, and field visits from Census Bureau field agents to about 3.5 million households, regardless of legal immigration status.
Overall, 42.31 million Americans lived below the poverty line, according to the Census Bureau (or 13.15 percent of the total population). Mississippi (19.58 percent), Louisiana (18.65 percent), New Mexico (18.55 percent), West Virginia (17.10 percent), Kentucky (16.61 percent), and Arkansas (16.08 percent) had the highest poverty rates, while New Hampshire (7.42 percent), Maryland (9.02 percent), Utah (9.13 percent), Hawaii (9.26 percent), and Minnesota had the lowest poverty rates (9.33 percent ).
What is the poorest state in America?
Mississippi is the poorest state in the United States. Mississippi has the lowest median household income in the US, at $45,792, with a living wage of $46,000. Furthermore, the state has the highest poverty rate of any state, at 19.6 percent. Mississippi also has the country’s highest obesity rate of 40.8 percent and the shortest life expectancy of 74.5 years. With a median household income of $48,850 and a poverty rate of 17.54 percent, West Virginia is the second poorest state in the United States. West Virginia has a poor educational attainment rate, with the second-lowest life expectancy of 74.8 years and the lowest percentage of persons with a Bachelor’s degree or higher.
Louisiana, Arkansas, and New Mexico round out the top five poorest states in the country. Louisiana is the third poorest state in the country. The median household income in Louisiana is $51,073, which is more than the state’s living wage of $48,000. However, it has the country’s second-highest poverty rate of 19.0 percent. Louisiana’s public schools are regarded as some of the worst in the country. Arkansas is the poorest state in the United States. Arkansas has the third-lowest median household income, at $48,952. The state has the fifth-highest poverty rate in the US, at 16.2 percent. Arkansas has the third-highest obesity rate in the country, trailing only West Virginia and Mississippi. New Mexico is the poorest state in the United States. New Mexico has the third-highest poverty rate in the US, with a median household income of $51,945. New Mexico’s public schools, unfortunately, are the poorest in the country, with the highest dropout rates of any state.
What is America’s wealthiest city?
You may not be aware of the tranquil town of Atherton, California, unless you live in or near Silicon Valley. This community of less than 7,500 individuals is nearly equidistant from San Francisco and San Jose and is home to some of America’s wealthiest families. The average household income in the United States is $525,000. Atherton is home to tech titans like Sheryl Sandberg of Facebook and Eric Schmidt of Google. A number of celebrities and athletes, including NBA star Steph Curry of the Golden State Warriors, have residences in the area.