70% OF THE U$ ECONOMY RELIES ON WORKERS CONSUMPTION
By Dr. Tim Sandle
DIGITAL JOURNAL
March 25, 2025
Even New Yorkers lucky enough to live in rent-stabilized apartments -- approximately one million units and two million tenants, according to city data -- are not immune to the growing housing crisis in their city. — © AFP
U.S. household debt surged to $18.04 trillion in late 2024, with credit card balances reaching an all-time high of $1.21 trillion. Alongside, nearly 80 percent of US citizens are making splurge purchases last month, despite only 42 percent feeling they could afford them.
The distribution of poor spending decisions and economic woes from the spluttering US capitalist model varies state to state. This is evident from the company Socially Powerful’s research, which reveals the states with the most responsible spenders. Furthermore, the data highlighted how residents’ habits reflect a growing trend of impulsive spending and the challenges of maintaining financial responsibility.
The company created a points-based index system which analysed each state based on several metrics. The data for this analysis was gathered from a variety of reputable sources across multiple domains which can be found on the dataset, including ICSC, UpgradedPoints, WalletHub, Equifax, Bankrate, Raisin, and Wikipedia.
For this analysis, the firm focused on identifying states with the least responsible spenders based on these key variables: Average Bank Card Balance (2024), Total Interest Expense (2024), Average Credit Score (2024), Most Stressed States (2024), % People Making More Purchases Online (2024), Monthly Amazon Spending (2023), Number of Marketplaces per State (2023) – The number of marketplaces in each state was normalized by the state’s population size to allow for comparisons across states of different population sizes. This was calculated as the number of marketplaces per 10,000 people.
From this analysis, the top ten most financially responsible states were determined as:South Dakota
North Dakota
Kansas
Indiana
Minnesota
Idaho
Pennsylvania
West Virginia
Missouri
Iowa
As to what this top ten is based on, the following criteria were used:
• Debt Burden (Total Interest Expense & Credit Card Balance): States with higher credit card balances and interest expenses were assigned higher scores, as these indicate higher financial irresponsibility.
• Stress Levels: States with higher stress scores were considered more financially stressed, which could contribute to irresponsible spending behaviour. A higher stress score led to a higher score in the model.
• Online Spending Behaviour: States with a higher percentage of people making more online purchases were assigned a higher score, as increased online shopping (particularly on platforms like Amazon) often correlates with impulsive or excessive spending habits.
• Marketplace Density (Normalized Number of Marketplaces per 10,000 population): States with higher marketplace density were assigned a higher score, as they may have more opportunities for excessive or impulse buying. Higher marketplace density about population size indicates a higher opportunity for consumption, and thus a higher score.
• Other metrics were collected : Such as Median Household Income, Average Retirement Savings, and Average Bank Account Savings but were excluded from the final scoring model. While valuable for understanding financial health, they were deemed less relevant for assessing consumer spending responsibility.
As indicated above, South Dakota has the most responsible spenders with one of the lowest stress levels. South Dakota’s 914,488 residents maintain average retirement savings of $449,628, 13 percent higher than Montana’s ($390,768), and a median household income of $71,810, surpassing Kansas by 2 percent ($70,333).
With a stress score of 31.94/100, among the lowest in the nation, residents demonstrate strong debt management, reflected in total interest expense of $847 and an average credit score of 722. Retail opportunities are limited, with 1.25 marketplaces per 10,000 residents, yet monthly Amazon spending remains steady at $92.01.
North Dakota ranks second with just 1.24 shops per 10,000 residents While the average bank card balance of $5,618 is 4.5 percent higher than South Dakota’s ($5,375), the total interest expense is only $855, reflecting manageable debt levels. Residents boast the highest median household income in this group at $76,525, alongside retirement savings of $319,609. Retail options are sparse, with just 1.24 marketplaces per 10,000 residents, and e-commerce spending matches its neighbour at $92.01 per month, with a credit score of 720 and stress score of 35.35/100 highlighting financial stability.
Kansas ranks third. The state’s median household income of $70,333 is 12% higher than the neighbouring state of Oklahoma ($62,138), alongside residents boasting average retirement savings of $452,703. Kansas has strong retail density, offering 2.61 marketplaces per 10,000 residents, more than double Montana’s, and has a total interest expense of $889 and an average credit score of 712, the lowest among these states.
Montana rounds off the top ten with a score of 6.34/10. The state has an average bank card balance of $5,728, 14% lower than Virginia ($6,647), alongside a total interest expense of $968. The state has retirement savings of $390,768, and a median household income of $70,804 – 23% higher than Mississippi’s $54,203. Retail access is limited, with only 1.17 marketplaces per 10,000 residents, but e-commerce spending aligns with neighbouring states at $92.01 per month.
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