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Congratulations, Mississippi. You’ve Earned It.

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This post Congratulations, Mississippi. You’ve Earned It. appeared first on Daily Reckoning.

Let’s start with a tweet that’s been circulating and making Britons choke on their morning biscuits. It goes something like this: Mississippi’s GDP per capita — America’s poorest state, the one the rest of America makes fun of — is higher than the United Kingdom’s.

Mississippi. The state synonymous with poverty, crawfish, and “bless your heart.” That Mississippi now outproduces the cradle of the Industrial Revolution on a per-person basis.

Congratulations, Mississippi. You’ve officially lapped a G7 country.

Before we get into it, a few caveats. First, I’ve written articles arguing that comparing two different levels of polities using GDP per capita is erroneous… and I even use Mississippi versus Germany as an example why.

Second, the South isn’t rising. It’s already risen. By that, I mean the area from Louisiana up to Arkansas, over to Kentucky and West Virginia, and then down to Florida, is the largest economic region in the United States. That region doesn’t include Texas.

So it should be no surprise that Mississippi is doing well. The shock is that Britain is doing so poorly.

Let’s check the numbers.

The Numbers Don’t Lie (Even If They’re Complicated)

The headline comparison is real. Mississippi’s nominal GDP per capita sits in the low-$50,000s. The UK’s comes in around $45–49k. So on the most basic measure — total economic output divided by heads — the poorest American state edges out Great Britain.

Now, economists will immediately reach for PPP adjustments — purchasing power parity, which corrects for the fact that a pound in London and a dollar in Tupelo don’t buy the same thing. Fair enough. Once you run those numbers, both Mississippi and the UK fall into roughly the same $50–60k range. A statistical draw. Barely.

But here’s where things get genuinely embarrassing for the Mother Country.

The Median Tells the Real Story

GDP per capita is an average. It tells you what the economy produces per person. It says nothing about what typicalpeople actually pocket after taxes, healthcare costs, and the general business of modern life.

So let’s look at median disposable income, which is what the person in the middle of the distribution actually has to spend.

The UK’s Office for National Statistics reports that median household disposable income is about £36,700 for the year ending 2024. Convert that to purchasing power parity dollars and spread it across household members, and the typical Briton is living on roughly $21,000–25,000 a year in real, spendable income.

Mississippi’s median household income is around $56,000–57,000. Adjust upward for the state’s rock-bottom price level — Mississippi is the cheapest state in America to live in, with a regional price parity index of just 84 — and the typical Mississippian has the purchasing power of roughly $35,000–38,000 a year.

That’s a gap of 50–60%. Not in the UK’s favor.

Britain, a country with a nuclear arsenal, a permanent UN Security Council seat, and an insufferable combination of snobbery and imperial hangover, is delivering its median citizen a standard of living meaningfully below that of the people America uses as its go-to punchline for rural poverty.

“But the NHS!” I Hear You Cry

Yes, yes. The caveats are real and worth noting, if only so you can’t accuse this column of cherry-picking.

The UK’s welfare state is genuine. Universal healthcare, subsidized university places, and a denser safety net are things that have real value that doesn’t show up in disposable income figures. What they’re worth and what they deliver is certainly up for debate.

The median Mississippian’s higher cash income gets eaten by healthcare premiums, out-of-pocket medical costs, and the necessity of owning a car. Strip out those private expenditures, and the gap narrows.

British wealth, particularly housing equity and pension rights accumulated over decades, also appears stronger than the income data suggest. The UK is a country where a lot of middle-class security is locked up in bricks and pension funds rather than flowing as monthly take-home pay.

And yes, Mississippi has inequality problems that Mississippi’s averages politely obscure. Plenty of Mississippians are genuinely poor by any measure.

Fine. All of that is true.

But here is what is also true: the median Briton — not the poor, not the rich, the person bang in the middle of the distribution — is living on less disposable purchasing power than the median resident of the state where, as the joke goes, the schools are so bad they make you feel better about everywhere else.

At least, that’s what the Office for National Statistics (ONS) spreadsheet says.

Wrap Up

Britain’s model has quietly traded away cash income for a large state and inflated asset prices. That was a fine bargain when house prices were still accessible, and the NHS wasn’t drowning. It’s a considerably worse deal for anyone born after 1985, locked out of housing, and staring at a crumbling public health system.

Meanwhile, GDP per head has stagnated. Relative to the US, British living standards have been in quiet, polite, and utterly catastrophic decline for the better part of two decades.

The Mississippi comparison is a diagnostic. When a typical citizen of a major G7 economy has less spending power than residents of the state that the rest of America reflexively uses as a synonym for “rock bottom,” something has gone very wrong in Westminster.

Mississippi didn’t win by getting richer. Britain lost by getting poorer.

Someone should probably tell the King.

The post Congratulations, Mississippi. You’ve Earned It. appeared first on Daily Reckoning.

This story originally appeared in the Daily Reckoning . The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.


Source: https://dailyreckoning.com/congratulations-mississippi-youve-earned-it/


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