Minnesota vs. United States Comparative Trends Report: Total Personal Income, 1958-2022 Briefing Report Outline: Page 1 of 11 Introduction  Minnesota: 2022 TPI = $393,569,020K 2022 Percent of U.S. = 1.80% U.S.: 2022 TPI = $21,820,248,000K The annual total personal incomes (TPI) estimates compiled by the Bureau of Economic Analysis, (BEA) are among the most comprehensive, consistent, comparable and timely measures of economic activity available statewide and at the national levels. Personal income estimates are also the best available local level indicator of general purchasing power, and are therefore central to tracking and comparing state patterns of economic growth and change. The following graphs highlight trends in the pattern of growth and change in the total personal income of Minnesota. The data used are those compiled by the Regional Income and Product Divisions of the Bureau of Economic Analysis, U.S. Department of Commerce. The 2017 constant dollar (real) estimates of total personal income reported in the tables and portrayed graphically below are determined using the Implicit Price Deflator for Personal Consumption. Data Definition: Personal Income is the income that is received by all persons from all sources. It is calculated as the sum of wage and salary disbursements, supplements to wages and salaries, proprietors' income with inventory valuation and capital consumption adjustments, rental income of persons with capital consumption adjustment, personal dividend income, personal interest income, and personal current transfer receipts, less contributions for government social insurance. The personal income of an area is the income that is received by, or on behalf of, all the individuals who live in the area; therefore, the estimates of personal income are presented by the place of residence of the income recipients. Page 2 of 11 Minnesota Total Personal Income, 1959-2022 Current vs. Constant Dollars (Millions)  Figure 1. Figure 1 depicts Minnesota's annual total personal income over 1959-2022 in current and constant (2017) dollars. Constant dollar measurements remove the effects of inflation. They allow for comparison of changes in the real purchasing power of Minnesota over time. When measured in current dollars, Minnesota's total personal income increased 5,494.70%, from $7,035M in 1959 to $393,569M in 2022. When measured in constant 2017 dollars to adjust for inflation, it advanced 637.17%, from $46,008M in 1959 to $339,158M in 2022. Page 3 of 11 Real Total Personal Income Indices (1958=100): 1958-2022  Figure 2. Figure 2 portrays Minnesota's real total personal income growth in a broader context by offering direct comparisons across time with the United States. The growth indices shown here express each region's real total personal income in 1958 as a base figure of 100, and the real total personal incomes in later years as a percentage of the 1958 base figure. This method allows for more direct comparison of differences in real total personal income growth between regions that may differ vastly in size. Minnesota's overall real total personal income growth was 654.46% over 1958-2022 outpaced the United States' increase of 653.14%. Page 4 of 11 Total Personal Income as a Percent of the United States Total: 1958-2022  Figure 3. Another interesting and insightful way of highlighting the total personal income growth of Minnesota is to trace its individual percentage contributions to the United States' total total personal income over time, as shown in Figure 3. A rising share means a region's total personal income grew faster, or declined less, than the United States' total personal income, while a declining share shows it grew more slowly. In 1958, Minnesota's total personal income totaled 1.80% of the United States' total personal income, while in 2022 it totaled 1.80% thereby yielding a +0.00% share-shift.
Page 5 of 11 Minnesota Real Total Personal Income: Annual Percent Change, 1959-2022  Figure 4. Figure 4 shows the short-run pattern of Minnesota's real total personal income growth by tracking the year-to-year percent change over 1959-2022. The average annual percent change for the entire 64-year period is also illustrated on this chart to provide a benchmark for gauging periods of relative high--and relative low--growth against the backdrop of the long-term average. On average, Minnesota's real total personal income grew at an annual rate of 3.24% over 1959-2022. The state recorded its highest growth in 1973 (11.24%) and recorded its lowest growth in 2009 (-3.81%). In 2022, Minnesota's real total personal income declined by -3.17% Page 6 of 11 Minnesota Real Total Personal Income: Annual Percent Change and Decade Averages Over 1959-2022  Figure 5. Over the past six decades some states have experienced extreme swings in growth, and often such swings have tended to coincide with the decades themselves. Figure 5 again traces the annual percent change in Minnesota's real total personal income since 1959, but this time they are overlayed with average growth rates for the decade of the 1960s, 1970s, 1980s, 1990s, 2000s, 2010s, and 2020-2022. During the 1960s, Minnesota's annual real total personal income growth rate averaged 5.19%. It averaged 3.56% during the 1970s, 2.97% in the 1980s, 3.62% during the 1990s, 1.77% during the 2000s, 2.72% in the 2010s, 2.25% thus far this decade (2020-2022). Page 7 of 11 Real Total Personal Income Growth: Average Annual Percent Change by Decade  Figure 6. Figure 6 compares the decade average growth rates for Minnesota noted in the previous graph with the corresponding decade averages for the nation. Relative to nationwide real total personal income growth trends, Minnesota surpassed the nation throughout the 1960s (5.19% vs. 4.82%), outgained the nation in the 1970s (3.56% vs. 3.50%), lagged the nation in the 1980s (2.97% vs. 3.16%), registered above the nation during the 1990s (3.62% vs. 3.27%), trailed the nation throughout the 2000s (1.77% vs. 2.06%), led the nation in the 2010s (2.72% vs. 2.72%), and exceeded the nation over 2020-2022 (2.25% vs. 2.10%).
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