Exam I Test Review Wealthiest or best states Connecticut New Jersey and Massachusetts Worst states Mississippi West Virginia and Arkansas Murder New Hampshire has the least Louisiana has the most o High murder rates in state across the entire bottom of the country Unemployment rates Lowest Hawaii Utah Idaho Nebraska and Virginia less than 3 Highest Michigan Educating Children population of school age High Texas Mississippi Georgia and Iowa Low Hawaii West Virginia Maine Florida and Vermont Quality of Life Best New Hampshire New Jersey Minnesota and Utah Worst Alabama Arkansas S Caroline Louisiana and Mississippi Texas ranked 22nd and 27th Business Climate Best Virginia Utah N Caroline Georgia Colorado Idaho Worst Arkansas Rhode Island West Virginia Mississippi Maine and Louisiana Texas ranked 1st and 9th Utah is the only state ranked high for both quality of life and business climate Arkansas Mississippi and Louisiana are ranked lowest for both quality of life and business climate National laws are passed by Congress o Reflect nationwide preferences values and morals Nationwide standard no matter where you live the same law applies Term limits have been enacted by 22 of the 23 states allowing citizens to pass laws o Typically 8 years U S Term Limits v Thorton 1995 Court declared state restrictions on who could run for Congress were unconstitutional Supreme Court ruled that setting a national speed limit exceeded the powers granted to Congress by the Constitution In the U S taxes provide the largest share of government revenues o Revenues available to a state legislature depend on its public s ability to pay taxes and can best be judged by the wealth of a state State s wealth is best measured by the wealth of its residents and their ability to pay higher taxes Southern states tend to have lower costs of living Personal Income v Personal Income Adjusted for the Cost of Living graph TX MO OK are above the diagonal line o Meaning lower than average costs of living Adjusted income is greater than nominal income CT NJ and Maine are below the diagonal line o Meaning higher than average costs of living Adjusted income is less than nominal income Southern most interior Western states were in the lowest personal income category Wealth Differences among the states There is not a simple relationship between tax rates and revenues per capita Wealthier states will receive more revenues per capita with lower tax rates than those of poorer states Wealthy states are mainly industrial states Poorer states lack large metropolitan areas o E g Boston Chicago Denver or LA that have high paying occupations You can also determine the wealth of a state by looking at the percentage of the population living in poverty High poverty in the South o Only the South and Southwest have states that are both low in income and high in poverty High poverty Low per capital personal income rate Mountain West and Great Plains states do not have high percentages of their publics living in poverty despite their low per capital personal income Low per capital personal income rate Low poverty rate Education Legislators see improving education as a way to make their state more competitive in attracting businesses with high paying jobs Businesses with a choice will go to states with better educated residents because they ll be able to fill positions more readily An educated population is generally a component of best in business measures 20th century measure of a state s education was the percentage of residents with at least a high school diploma South stands out as poorly educated o High school education map does not correspond well with the per capita income map Utah and Montana high education levels low per capita incomes o College education does correspond well with per capita income map of population with at least Bachelor s degree TX ranks middle Regression line provides the best fit for scatter plot elements Correlation coefficient gives us information about the direction and goodness of fit of the estimated regression line Percentage with Bachelor s Degrees and Per Capita Income o Range 1 0 to 1 0 CT and W Virginia o Strong positive 1 0 CT W Virginia Wyoming and Vermont o Strong positive 64 All states Bachelor s degree o Strong positive 76 TX is above regression line o CT W Virginia Wyoming above regression line o Vermont below regression line predicts lower per capita income with Metropolitan or Urban Living The first industrialized states are still the most metropolitan Least metropolitan traditional belt running in the South o Exceptions TX FL rural Midwestern states and northern Mountain West and Plains states Metropolitan Population and Per Capita Income scatter plot o Regression line positive Higher percent metropolitan higher per capita incomes 44 strong positive Murders and abortions are more common in heavily metropolitan areas o Strong positive relationship b t larger metro populations and murder abortion Percentage Metropolitan and Abortion Strong positive 67 Percentage Metropolitan and Murder Positive 35 Mississippi and AR have high murder rates low metropolitan Massachusetts and CT have low murder rates high metropolitan State Taxes and Expenditures Per Capita Income and State and Local Taxes o Strong positive o NY is an outlier people from other states pay payroll tax if they work in NY State taxes are the largest single source of state revenues 41 in 2004 No relationship between per capita income and per capita nontax income Strong positive per capita income and per capita total revenue Strong positive per capital total revenue and local nontax revenue and total revenue o Wyoming and Alaska are outliers Benefitted from natural resources petroleum coal in acquiring funds from the federal government Strong positive total per capita state revenues and total per capita state expenditures o Alaska tops all states o AR MO and OK have lowest South Strong positive per capita state and local revenue and expenditure o Shows that states with higher revenues can afford higher expenditures Alaska NY WY Massachusetts CA and CT o Suggests that they can provide a broad range of services Low AR MO OK Minorities With the exception of IL NY and NJ there are few minorities across the U S 8 10 states for percentage of African Americans are Southern states Age Groups High elderly rates FL W Virginia PA and Maine o Legislators in Northeast and Great Plains face particular policies such as medical programs for seniors
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