(AKA the “Important Part of New England” State)
The most patriotic of New England states is Massachusetts. Famous for their tea parties and awful accents, this state is one of the most important to the country. We would gladly give up some other states if we had to in order to keep Massachusetts. No it isn’t because of their colonial history, but from what has emerged since then.
Massachusetts is most well known for the metropolis of Boston. Boston is an intellectual powerhouse. You’ve got some of the most prestigious universities in the world surrounding the town. Here are just a few you might have heard of: Harvard, MIT, Boston University, Boston College, & Northeastern University. Among this group you have some of the best business, law, and medical schools in the world. Thanks to the Harvard Business School, Boston is a hub for financial activity. Many companies mutual funds are located there, including the corporate headquarters of Fidelity Investments. The very lucrative business of venture capital (investing in start ups like Twitter, Google, or Facebook) is also very big in Boston.
Outside of the finance sector, the greater Boston area is also the home of a number of well known American companies. Around here you’ll find the corporate headquarters of Gillette (now owned by Proctor and Gamble), Reebok, New Balance, Sun Microsystems, IBM, Teradyne, Dunkin Donuts, consulting companies: Boston Consulting Group and Bain & Company, and National Amusements, Inc. National Amusements sounds like the parent company of Six Flags or something, but you would know the company better by the companies they own. Two such companies are CBS, and Viacom. Viacom operates MTV, BET, Paramount Pictures, and DreamWorks. Thank Harvard once again for their strong contributions to the medical field in the area, including biotechnology. Though mostly based in New Jersey, the pharmaceutical industry has many regional centers in Boston.
As you can see Boston has a fairly diverse economy. But we aren’t done. Boston is a hotbed for tourism as well. With a number of convention centers, rich history, and big sports teams (Celtics, Red Sox, Patriots) people travel from all over the region, and country to visit the city and soak it in. Our last stop in Boston is the port. Made famous by the Boston Tea Party, the Boston Port is a major hub for fishing and international shipping.
But is Massachusetts only as good as Boston? The answer is no. The state is small, but as you head inland from Boston there is still plenty going on. Much of the rest of the state is rural. Of the 6,100 farms, about a third make only a few thousand dollars each year. This would mean their owners are only farming as a side business, and work full time elsewhere. The most popular farm products are tobacco, animal products, nuts, and fruits – especially berries. Massachusetts is the second largest farmer of cranberries, after Wisconsin. In the 1930s three cranberry farmers wanted to market their crops better, and formed a cooperative . This co-op is known as Ocean Spray. Together with distributors like Pepsi, they sell juices and food products, like Craisens. Ocean Spray is responsible for many innovations over the years, including the introduction of the first juice box!
All this economic activity adds up to make Massachusetts worth a lot more than its size would suggest. Next to Connecticut, Massachusetts has the highest per capita income in the country. Their income tax is flat at 5.3% and there is a 5% sales tax on most items. They’ve also got some fascinating taxes (yes it’s apparently possible to have fascinating taxes). The sales tax does not apply to clothing, food and periodicals. For clothing though, you are taxed at the 5% rate for each dollar you spend over $175 (not sure if that is in one trip or per item). My favorite tax though is the short-term capital gains tax. This 12% tax is a tax on income made from investments held for less than a year. Think of day traders. In many other states this is a much cheaper tax.
With a rich history, strong intellectual capital, and a diverse economy, Massachusetts has set themselves up to be the state to beat in the northeast. I guess that’s why they are the “Important Part of New England” state.
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice. |
Pingback: Welcome to the Carnival of Personal Finance | Mighty Bargain Hunter
Pingback: Welcome to the Carnival of Personal Finance @ Finance Help Ideas