The mean (average) household income is a misleading statistic because it is heavily skewed by extreme values from wealthy individuals, making states like Connecticut, Massachusetts, and New Jersey appear to have mean incomes of $130,000 or more when in reality, the median income is 25-50% lower; to understand the true economic situation of a state, one should look at the median income rather than the mean, as the median represents the middle value and is not distorted by outliers.
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Deep Dive
The $130,000 Lie Hidden in Your State's Data
Added:The $130,000 lie 0.10 0.05 A map of the US flashes. Connecticut, Massachusetts, and New Jersey light up in neon green. Text on screen $130,000 plus. If you want to make a state look incredibly rich on paper, you use one specific math trick. 0.05 0.12 A giant bar chart showing average income. The bar shoots up into the sky.
Look at Connecticut, Massachusetts, and New Jersey. Their mean household income is a massive $130,000.
0.012 0.20 The camera aggressively zooms out to show three giant cartoon billionaires standing on top of the bar pulling it up with ropes. But that number is a complete mathematical lie and it's designed to hide the real economy. 0.20 0.32 A split screen. Left side mean, sky high. Right side, median drops down 50% lower. Text [music] the gatekeeper of reverse thinking. If you want to see the real state, don't look at the average, look at the median. 0.32 0.45 The neon green map changes to a deep heat map showing high income inequality.
Percentages flash +25% +50% [music] In almost every single US state, the average income artificially beats the median by 25 to 50%. [music] Why? 0.45 0.53 A digital scale tilts wildly to one side as a few massive mega wealthy dollar signs drop onto it. Because a handful of multi-millionaires distort the data pulling the statistical average up for everyone else.
53 1 The host points directly at the camera. Text check your [music] state.
Your state isn't actually richer, it's just more unequal. Hit follow to see the real numbers behind your state.
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