Bang For Your Buck? Mapping Where A Dollar Goes Furthest In America

Go to any large, high-density city like New York or San Francisco, and you’ll notice a difference in costs immediately.

The price you pay for groceries, dinner at the restaurant, filling up your tank, or even your daily coffee goes up substantially. With high-paying jobs, booming economies, limited space, and soaring levels of density, cities can be expensive.

DOLLAR DISPARITY

While this effect on costs is most evident in cities, Visual Capitalist"s Jeff Desjardins notes that it’s actually present throughout the country.

What you can buy for your paycheck varies wildly depending on where you are, greatly impacting purchasing power and the cost of living. Sometimes even a short one-hour drive can make a difference in some cases.

Today’s two maps come from TaxFoundation.org, and they look at regional differences in purchasing power, based on information from the Bureau of Economic Analysis.

BANG FOR BUCK, BY STATE

The following map shows the buying power of $100 by state.

If the number is below, such as $90, it means money buys less than the federal average. If a state’s number is higher, such as $110, that means each dollar goes further, giving residents more purchasing power.

Generally speaking, dollars go furthest in states in the Southeast and Midwest parts of the country. Go to places like Arkansas or South Dakota, and you’ll see higher purchasing power.

Here are the five states that have the most buying power:

And here are the five with the least buying power:

BANG FOR BUCK, BY COUNTY

The state map does not tell the whole story, however.

The reality is that density makes a big difference for buying power, and large metropolitan areas tend to be more expensive. The following chart breaks it down based on county, creating a much more interesting contrast.

The above rendition makes it clear that the Bay Area, New York City, and Washington D.C. are the places where the relative value of a dollar is lowest.

Meanwhile, it also shows that metropolitan areas in some parts of the country are not too bad for the cost of living. Cities like Atlanta ($104.10), Nashville ($106.50), Phoenix ($102.90), Milwaukee ($104.50), Kansas City ($106.70), Jacksonville ($104.40), and New Orleans ($104.60) buck the trend, being cheaper than the American average.

Here’s another look – this time with an interactive map that allows you to hover over individual metro areas:

Stagflation Shock: ISM Shows Input Costs Soaring At Fastest Since 2011

Input cost inflation is soaring at its highest since September 2014 according to Markit"s US Manufacturing PMI survey (which surged in January to 55.0 - slightly less than the 55.1 prelim print - the highest since March 2015). New orders accelerated but employment slipped and despite the surge in costs, factory gate charges increased only modestly. Despite disappointing "hard" data from durable goods, ISM survey data confirms the bounce (highest since 2014) but Prices Paid spiked to its highest since 2011 (and export orders dropped).

Hard vs Soft data... ISM CEO Holcomb summed it all up perfectly: ISM GAIN DRIVEN BY HOPES, EXPECTATIONS UNDER TRUMP

Prices Paid are soaring... (and export orders dropping)

ISM notes that...

• Commodities Down in Price: None.


• Commodities in Short Supply: None.

So, to be clear, everything is up in price, but there is no shortage of anything.

New Orders were stagnant...

And the full breakdown...

Almost every ISM respondent is exuberant...

• 
  

  “Demand very steady to start the year.” (Chemical Products)

  
  


• 
  

  “January revenue target slightly lower following a big December shipment month.” (Computer & Electronic Products)

  
  


• 
  

  “Strong start to the new year. Production is increasing and we are adding capacity.” (Plastics & Rubber Products)

  
  


• 
  

  “Business looks stronger moving into the first quarter of 2017.” (Primary Metals)

  
  


• 
  

  “Economic outlook remains stable and no current effects of geopolitical changes appear to be penetrating market conditions.” (Food, Beverage & Tobacco Products)

  
  


• 
  

  “Sales bookings are exceeding expectations. We are starting to see supply shortages in hot rolled steel due to the curtailment of imports.” (Machinery)

  
  


• 
  

  “Year starting on pace with Q4 2016.” (Transportation Equipment)

  
  


• 
  

  “Business conditions are good, demand is generally increasing.” (Miscellaneous Manufacturing)

  
  


• 
  

  “Conditions and outlook remain positive. Raw material prices are stable resulting in stable margins. Asset utilization remains high.” (Petroleum & Coal Products)

  
  


• 
  

  “Steady demand from automotive.” (Fabricated Metal Products)

  
  

Commenting on the final PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:

“The US manufacturing sector has started 2017 with strong momentum. Despite exports being subdued by the strong dollar, order books are growing at the fastest pace for over two years on the back of improved domestic demand.

“With optimism about the year ahead at the highest since last March, the outlook has also brightened.

“Production is consequently growing at the strongest rate for almost two years and inventories are rising at a rate not seen for nearly a decade as firms respond to higher demand, suggesting the goods-producing sector will make a decent contribution to first quarter GDP.

“With input costs also rising at the steepest rate for over two years, and hiring sustained at an encouragingly solid pace as firms expand capacity, all of the survey indicators point to the Fed hiking interest rates again soon.”