New Jersey is one of the states of the United States. Laying within the extensive metropolitan areas of New York City is the most populous state of the United States and is also the second richest state. The state is consistently ranked as one of the highest median incomes. A general perception is that the richer state would have the most developed economy.
Let’s see if this holds true for a new jersey or not. The location of this state at the center of the Northeast Megalopolis is beneficial for the economy fueling its swift growth through the suburban boom of the 1950s.
Economy Of New Jersey
The introduction of the new factories in the cities of Elizabeth, Paterson, and Trenton helped to bring the industrial revolution in the 19th century. In2006, the bureau of the Economic Analysis estimated that the total state product was of the value of $434 billion. However, in January 2010, the unemployment rate of this state was 9.9%. the per capita income of this state is estimated as the third highest with $51,358. The state also has the highest number of households that are a millionaire.
When it comes to fiscal policy, we see that the state has seven tax brackets that range from 1.4 to 8.97% which determine the income tax rates. The general prevailing sales tax rate that is applicable is 7%. This tax rate applies to all the retails unless they are not given exemptions by the law. Generally, the exemptions are allotted to the food items, medicines, and clothing. The shoppers are generally charged a tax rate of 3.5% tax rate. The communities of Elizabeth and Jersey city are charged a lesser tax rate The economy of New Jersey is famous for the pharmaceutical industry, chemical development, and telecommunications and tourism. The state is also a center of attraction for tourists which further adds to the economy of the state. The state is also famous for its agricultural products. Some of the famous agricultural products include blueberries, cranberries, spinach, peaches, bell peppers, and lettuce.
New Jersey is also famous for its strong scientific economy. The industry is flourishing due to the availability of the large pool of skilled labor which supports the development of the industry in the state. Shipping is also the strong industry over here because of the strategic location of the state and has the busiest port over here. Many of the headquarters of the business is also located in this state because of the strategic location. The state frequently faces the deficits which affect the standard of living of the people over here. It has the highest tax burden.
The highest cost of living over here further increases the tax liability. Although the incomes are higher over here which puts them in a higher income tax bracket it makes their life vulnerable to paying the minimum taxes. From this discussion, we can see the economy is flourishing and therefore it is proved that the state having more richer people has a developed economy.