It doesn’t take a rocket scientist or even a hot dog vendor to figure out this report is poppycock;

The low cost of living boosts South Dakota’s per capita personal income for 2009 from $38,374, ranked 26th, to $45,900. Sioux Falls’ RPR is 88.6 with an adjusted per capita personal income of $45,100.

Per capita. What a bullshit way of determining wealth and income in South Dakota. We all know the separation of the rich and poor in this state is huge;

Nesiba (ECON PROF, Augie) said the study would have been better if it used median incomes rather than per capita income.

I think the per capita average inflates the overall perceived welfare of South Dakota,” because a small number of people with high incomes can skew the data.

He added that while it’s clear that South Dakota has a lower cost of living, the study doesn’t show the full picture. He cited the number of people using housing assistance or food stamps and the fact that the state has a high number of working moms, for instance.

“I think all of those things are motivated by the fact that we have low wages,” he said.

I would love to see the numbers. Who is making 45 grand a year, who makes below that and who makes above that? Is cost of living in SD low? Sure. Wanna know why? Because business knows if they would charge more for their services they would have no customers.

 

10 Thoughts on “Huge gap between rich & poor in SD skews report

  1. Ol' Timer on May 31, 2011 at 6:08 am said:

    That is such bullshit, it even smells when the wind blows 50 mph. South Dakota has 5 of the top 7 poorest counties in the US. Except in SD we call them reservations, not counties, which of course means we don’t give a shit. Here is proof of that, Noem get an appointment to a committee that is charge of Native Affairs and never campaigned on a Indian reservation.

    You take welfare out of this state and we rank real close to the bottom. Farm “Welfare” Subsidy has made poor people rich and in the last few years, it has made some of them very rich. With a lot of uneducated farmers making more money per year then heart surgeons.

    I have a relative who has worked the system to average subsidy payments of $76,000 a year for farming. He is gotten to be a land hog just to get the government money. And why not, the land is taxed at what 1.96% of assessed value. Land in our area is selling for $3500 an acre and getting taxed at $600 to $700 an acre. My small business is a building 22 X 48′ and taxed at $800 a year. My 70′ by 135′ lot with a $90,000 house is taxed at $1500.

    You want to know who is against income tax? The rich and the farmers, or probably about 35% of SD population. If money could not buy bull shit, South Dakota would have had income tax years ago. But money buys advertising and good advertising will instill fear in the poor. If it wouldn’t, Thune would not have beaten out Daschle, one of the most powerful politician in the US.

    South Dakota and SDSU say they can not afford the extension office anymore. Codington County has roads underwater, bridges that are unsafe, their employees are about $4 an hour below other government employees in the area. But last Tuesday they decided to do a engineering study to see if they should build a million dollar office to house some of the displaced extension office workers from Brookings, who has already said there is no guarantee they will move here.

    As long as we keep saying that ag is the number #1 business in SD, it will not ever change. Again money buys good advertising, which buys fear in the poor and votes for the rich.

  2. Pathloss on May 31, 2011 at 9:10 am said:

    There’s the rich and the rest of US. Some of US are low wage waiters with a keen perception of how twisted, greedy, and corrupt the rich and politicians have become. Some of US are poor because they believed they could spend $50,000 they couldn’t afford to restore democracy in Sioux Falls.

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  4. anominous on May 31, 2011 at 10:18 am said:

    All jobs here pay $45,000. Didn’t you read the article?

  5. l3wis on May 31, 2011 at 10:48 am said:

    Sign me up.

  6. l3wis on May 31, 2011 at 10:51 am said:

    Ol’ Timer – One more thing that isn’t being taxed; Advertising.

  7. Poly43 on May 31, 2011 at 12:26 pm said:

    Who is making 45 grand a year, who makes below that and who makes above that?

    There are 134,240 jobs in Sioux Falls. 100,680 of those jobs make less than $42,369 a year. The MEDIAN income per capita job is $29,500 in Sioux Falls. Of the 392,890 jobs in the state, the MEDIAN income is $27,700. That’s why young people are lining up in droves to go to work here.

  8. Pathloss on May 31, 2011 at 2:22 pm said:

    Ahem, all full time city workers make more than $45K. It’s more like $100K considering the lucrative benefits. A third of them live outside the city and don’t pay property taxes here. City jobs would be more productive and can be contracted cheaper. Contractors would pay sales tax and live here. Stop hiring and solve this problem through attrition. Also, initiate something new, ‘competitive bidding’ and not ‘usual (mayor skim) bidding’.

  9. rufusx on May 31, 2011 at 4:48 pm said:

    Pathloss – will you please stop standing on your head? the argument here is that a few people making $250K + skews the data in the “average per capita” figure and you solutin (it seems) is that we need MORE people to make LESS – and THAT will make it all better????

    How many people making $20K does it take to equal one person making $250K?? Answer – 12.5.

    What is the “average” percapita income of those 12.5 people? Answer – 20K.

    Throw in the one person making $250K – NOW what’s the average per capita incpome of those 13.5 people? Answer – $37.75K.

    Of those 13.5 people – how many are making at least that much? Answer – 1.

    How much of that $37.75 are the other 12.5 below that? Answer – they earn 52.3% of the “average” (about HALF).

    So, then what is YOUR solution to the disparity? Cut the $250K guys’ income.

    What’s a better solution? Raise the $20K folks’ income.

  10. l3wis on June 1, 2011 at 4:47 am said:

    Ruf – I would have to agree. This kind of crap is going on across the nation, only the brave souls in Wisconsin had enough gumption to stand up to the insanity.

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