Special Report
The Best and Worst State Economies, According to New Prosperity Index
Published:
Measuring a society’s level of prosperity is not only about gauging economic factors like gross domestic product or median household income, but also about other aspects that impact the quality of life for the average citizen. A society can be affluent and stable and still be a place where too many of its people struggle to access health care, a quality education, public services, health-affirming natural environments, or well-maintained infrastructure.
In a large country like the United States, the level of prosperity varies considerably among the 50 states relative to each other. One state can do well in some metrics, such as the ease of doing business, and poorly in another, such as public safety. (Also see, these are the states where inflation is causing the most stress.)
To identify the most and least prosperous states, 24/7 Wall St. reviewed the 2022 American Dream Prosperity Index, a collaboration between London-based think-tank Legatum Institute and the Milken Center for Advancing the American Dream. States are ranked by their index scores out of 100, from most to least prosperous. The report also provided the scores for the three broad categories considered: inclusivity, economics, and personal empowerment. The full report methodology can be found here.
This index compares U.S. states based on 11 pillars that make up a safe and stable capitalist society. These pillars include quality of governance and infrastructure, the ease of doing business, environmental protection, and other quality-of-life factors. These pillars are then grouped into the three broader categories.
A state can rank high in one of these broad categories and low in another, which would bring down its overall ranking.
For example, Texas ranks very high in economic openness — a category that includes infrastructure, fiscal sustainability, and competitiveness — but it ranks near the bottom in inclusiveness, pulled down by poor public safety and quality of governance. Despite its economic clout, influence on national policies, and geographic/demographic size, Texas ranks only 38th in prosperity.
States that rank among the top 10 most prosperous include Massachusetts, Minnesota, Utah, Colorado, Washington, and Connecticut. California, the country’s most populated state, ranks 28th. Near the bottom are Oklahoma, West Virginia, Nevada, Alabama, New Mexico, and Mississippi.
Notably, none of the 10 most populous states make it to the top 10 list of most prosperous. New York ranks 13th, the highest among these states, while Florida ranks 29th and Georgia ranks 35th. Among the states with the smallest populations, New Hampshire and Vermont are among the 10 most prosperous. Of course, there are many ways to look at the issue. Compare the American Dream Prosperity Index to 24/7 Wall St.’s best and worst states to live in 2022.
Here are the most and least prosperous U.S. states.
1. Massachusetts
> Overall prosperity score (out of 100): 67.42
> Empowered people score (out of 100): 73.49 — the best
> Inclusive societies score (out of 100): 67.17 — 2nd best
> Open economies score (out of 100): 61.58 — the best
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2. Connecticut
> Overall prosperity score (out of 100): 66.81
> Empowered people score (out of 100): 72.20 — 2nd best
> Inclusive societies score (out of 100): 67.17 — 2nd best
> Open economies score (out of 100): 61.07 — 4th best
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3. Minnesota
> Overall prosperity score (out of 100): 65.12
> Empowered people score (out of 100): 69.39 — 6th best
> Inclusive societies score (out of 100): 65.20 — 6th best
> Open economies score (out of 100): 60.76 — 7th best
4. New Hampshire
> Overall prosperity score (out of 100): 64.20
> Empowered people score (out of 100): 70.70 — 3rd best
> Inclusive societies score (out of 100): 64.10 — 9th best
> Open economies score (out of 100): 57.81 — 17th best
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5. Utah
> Overall prosperity score (out of 100): 64.09
> Empowered people score (out of 100): 65.24 — 12th best
> Inclusive societies score (out of 100): 66.46 — 5th best
> Open economies score (out of 100): 60.58 — 9th best
6. Vermont
> Overall prosperity score (out of 100): 63.39
> Empowered people score (out of 100): 69.77 — 4th best
> Inclusive societies score (out of 100): 70.38 — the best
> Open economies score (out of 100): 50.03 — 13th worst
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7. New Jersey
> Overall prosperity score (out of 100): 63.27
> Empowered people score (out of 100): 69.43 — 5th best
> Inclusive societies score (out of 100): 61.24 — 14th best
> Open economies score (out of 100): 59.13 — 11th best
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8. Wisconsin
> Overall prosperity score (out of 100): 62.44
> Empowered people score (out of 100): 63.18 — 16th best
> Inclusive societies score (out of 100): 65.02 — 7th best
> Open economies score (out of 100): 59.11 — 12th best
9. Washington
> Overall prosperity score (out of 100): 62.32
> Empowered people score (out of 100): 66.50 — 8th best
> Inclusive societies score (out of 100): 61.17 — 15th best
> Open economies score (out of 100): 59.28 — 10th best
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10. Colorado
> Overall prosperity score (out of 100): 62.07
> Empowered people score (out of 100): 67.13 — 7th best
> Inclusive societies score (out of 100): 58.47 — 20th best
> Open economies score (out of 100): 60.60 — 8th best
11. Nebraska
> Overall prosperity score (out of 100): 60.88
> Empowered people score (out of 100): 61.73 — 19th best
> Inclusive societies score (out of 100): 62.99 — 10th best
> Open economies score (out of 100): 57.90 — 16th best
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12. Iowa
> Overall prosperity score (out of 100): 60.84
> Empowered people score (out of 100): 62.02 — 18th best
> Inclusive societies score (out of 100): 64.23 — 8th best
> Open economies score (out of 100): 56.27 — 24th best
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13. New York
> Overall prosperity score (out of 100): 60.80
> Empowered people score (out of 100): 66.04 — 9th best
> Inclusive societies score (out of 100): 55.54 — 22nd worst
> Open economies score (out of 100): 60.83 — 6th best
14. North Dakota
> Overall prosperity score (out of 100): 60.11
> Empowered people score (out of 100): 59.13 — 23rd worst
> Inclusive societies score (out of 100): 59.74 — 17th best
> Open economies score (out of 100): 61.45 — 2nd best
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15. Maryland
> Overall prosperity score (out of 100): 60.04
> Empowered people score (out of 100): 65.96 — 10th best
> Inclusive societies score (out of 100): 58.15 — 22nd best
> Open economies score (out of 100): 56.01 — 25th worst
16. Virginia
> Overall prosperity score (out of 100): 60.01
> Empowered people score (out of 100): 64.82 — 13th best
> Inclusive societies score (out of 100): 59.99 — 16th best
> Open economies score (out of 100): 55.23 — 23rd worst
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17. Maine
> Overall prosperity score (out of 100): 59.24
> Empowered people score (out of 100): 63.89 — 15th best
> Inclusive societies score (out of 100): 66.98 — 4th best
> Open economies score (out of 100): 46.85 — 7th worst
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18. Delaware
> Overall prosperity score (out of 100): 58.76
> Empowered people score (out of 100): 59.79 — 24th best
> Inclusive societies score (out of 100): 55.24 — 20th worst
> Open economies score (out of 100): 61.26 — 3rd best
19. Rhode Island
> Overall prosperity score (out of 100): 58.32
> Empowered people score (out of 100): 65.82 — 11th best
> Inclusive societies score (out of 100): 62.02 — 12th best
> Open economies score (out of 100): 47.12 — 8th worst
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20. Oregon
> Overall prosperity score (out of 100): 58.26
> Empowered people score (out of 100): 60.82 — 21st best
> Inclusive societies score (out of 100): 59.39 — 18th best
> Open economies score (out of 100): 54.56 — 21st worst
21. Idaho
> Overall prosperity score (out of 100): 58.19
> Empowered people score (out of 100): 59.10 — 22nd worst
> Inclusive societies score (out of 100): 61.86 — 13th best
> Open economies score (out of 100): 53.62 — 19th worst
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22. Pennsylvania
> Overall prosperity score (out of 100): 57.68
> Empowered people score (out of 100): 61.46 — 20th best
> Inclusive societies score (out of 100): 52.91 — 17th worst
> Open economies score (out of 100): 58.68 — 14th best
23. Illinois
> Overall prosperity score (out of 100): 57.57
> Empowered people score (out of 100): 60.23 — 23rd best
> Inclusive societies score (out of 100): 55.91 — 25th worst
> Open economies score (out of 100): 56.56 — 23rd best
24. South Dakota
> Overall prosperity score (out of 100): 57.20
> Empowered people score (out of 100): 60.46 — 22nd best
> Inclusive societies score (out of 100): 56.52 — 25th best
> Open economies score (out of 100): 54.63 — 22nd worst
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25. North Carolina
> Overall prosperity score (out of 100): 57.16
> Empowered people score (out of 100): 59.58 — 25th best
> Inclusive societies score (out of 100): 53.62 — 18th worst
> Open economies score (out of 100): 58.29 — 15th best
26. Wyoming
> Overall prosperity score (out of 100): 57.04
> Empowered people score (out of 100): 57.13 — 21st worst
> Inclusive societies score (out of 100): 57.99 — 23rd best
> Open economies score (out of 100): 56.00 — 24th worst
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27. California
> Overall prosperity score (out of 100): 56.22
> Empowered people score (out of 100): 62.17 — 17th best
> Inclusive societies score (out of 100): 52.28 — 15th worst
> Open economies score (out of 100): 54.22 — 20th worst
28. Michigan
> Overall prosperity score (out of 100): 56.20
> Empowered people score (out of 100): 59.14 — 24th worst
> Inclusive societies score (out of 100): 58.26 — 21st best
> Open economies score (out of 100): 51.21 — 16th worst
29. Florida
> Overall prosperity score (out of 100): 56.06
> Empowered people score (out of 100): 59.16 — 25th worst
> Inclusive societies score (out of 100): 51.24 — 13th worst
> Open economies score (out of 100): 57.77 — 18th best
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29. Hawaii
> Overall prosperity score (out of 100): 56.06
> Empowered people score (out of 100): 64.79 — 14th best
> Inclusive societies score (out of 100): 62.73 — 11th best
> Open economies score (out of 100): 40.66 — the worst
31. Kansas
> Overall prosperity score (out of 100): 56.03
> Empowered people score (out of 100): 56.98 — 20th worst
> Inclusive societies score (out of 100): 53.75 — 19th worst
> Open economies score (out of 100): 57.34 — 20th best
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32. Indiana
> Overall prosperity score (out of 100): 55.93
> Empowered people score (out of 100): 53.06 — 11th worst
> Inclusive societies score (out of 100): 57.39 — 24th best
> Open economies score (out of 100): 57.35 — 19th best
33. Ohio
> Overall prosperity score (out of 100): 55.84
> Empowered people score (out of 100): 54.52 — 14th worst
> Inclusive societies score (out of 100): 55.69 — 24th worst
> Open economies score (out of 100): 57.31 — 21st best
34. Montana
> Overall prosperity score (out of 100): 55.19
> Empowered people score (out of 100): 56.91 — 19th worst
> Inclusive societies score (out of 100): 59.06 — 19th best
> Open economies score (out of 100): 49.60 — 12th worst
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35. Georgia
> Overall prosperity score (out of 100): 55.03
> Empowered people score (out of 100): 56.20 — 17th worst
> Inclusive societies score (out of 100): 49.92 — 10th worst
> Open economies score (out of 100): 58.96 — 13th best
36. Missouri
> Overall prosperity score (out of 100): 54.02
> Empowered people score (out of 100): 55.97 — 16th worst
> Inclusive societies score (out of 100): 49.30 — 9th worst
> Open economies score (out of 100): 56.80 — 22nd best
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37. Texas
> Overall prosperity score (out of 100): 53.65
> Empowered people score (out of 100): 53.45 — 13th worst
> Inclusive societies score (out of 100): 46.54 — 5th worst
> Open economies score (out of 100): 60.96 — 5th best
38. Tennessee
> Overall prosperity score (out of 100): 53.51
> Empowered people score (out of 100): 52.49 — 10th worst
> Inclusive societies score (out of 100): 51.79 — 14th worst
> Open economies score (out of 100): 56.26 — 25th best
39. Arizona
> Overall prosperity score (out of 100): 52.57
> Empowered people score (out of 100): 56.52 — 18th worst
> Inclusive societies score (out of 100): 51.09 — 12th worst
> Open economies score (out of 100): 50.10 — 14th worst
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40. Alaska
> Overall prosperity score (out of 100): 52.30
> Empowered people score (out of 100): 55.41 — 15th worst
> Inclusive societies score (out of 100): 55.63 — 23rd worst
> Open economies score (out of 100): 45.87 — 5th worst
41. South Carolina
> Overall prosperity score (out of 100): 50.71
> Empowered people score (out of 100): 51.39 — 9th worst
> Inclusive societies score (out of 100): 47.36 — 7th worst
> Open economies score (out of 100): 53.37 — 18th worst
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42. Kentucky
> Overall prosperity score (out of 100): 50.19
> Empowered people score (out of 100): 49.41 — 8th worst
> Inclusive societies score (out of 100): 52.45 — 16th worst
> Open economies score (out of 100): 48.72 — 10th worst
43. Oklahoma
> Overall prosperity score (out of 100): 49.28
> Empowered people score (out of 100): 47.04 — 5th worst
> Inclusive societies score (out of 100): 50.17 — 11th worst
> Open economies score (out of 100): 50.65 — 15th worst
44. Alabama
> Overall prosperity score (out of 100): 48.75
> Empowered people score (out of 100): 47.17 — 6th worst
> Inclusive societies score (out of 100): 46.74 — 6th worst
> Open economies score (out of 100): 52.33 — 17th worst
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45. Nevada
> Overall prosperity score (out of 100): 48.25
> Empowered people score (out of 100): 53.38 — 12th worst
> Inclusive societies score (out of 100): 43.44 — 2nd worst
> Open economies score (out of 100): 47.94 — 9th worst
46. New Mexico
> Overall prosperity score (out of 100): 47.77
> Empowered people score (out of 100): 48.45 — 7th worst
> Inclusive societies score (out of 100): 48.79 — 8th worst
> Open economies score (out of 100): 46.08 — 6th worst
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47. West Virginia
> Overall prosperity score (out of 100): 47.11
> Empowered people score (out of 100): 42.66 — the worst
> Inclusive societies score (out of 100): 55.39 — 21st worst
> Open economies score (out of 100): 43.29 — 4th worst
48. Louisiana
> Overall prosperity score (out of 100): 45.02
> Empowered people score (out of 100): 43.07 — 2nd worst
> Inclusive societies score (out of 100): 42.44 — the worst
> Open economies score (out of 100): 49.55 — 11th worst
49. Arkansas
> Overall prosperity score (out of 100): 43.98
> Empowered people score (out of 100): 44.91 — 4th worst
> Inclusive societies score (out of 100): 45.44 — 3rd worst
> Open economies score (out of 100): 41.59 — 3rd worst
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50. Mississippi
> Overall prosperity score (out of 100): 43.54
> Empowered people score (out of 100): 43.27 — 3rd worst
> Inclusive societies score (out of 100): 46.04 — 4th worst
> Open economies score (out of 100): 41.30 — 2nd worst
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