The 10 Most Financially Happiest States

Economist Arthur Okun formulated "Okun's Law" and created the Misery Index as a means to measure the worsening of inflation by adding the unemployment rate to the inflation rate. The index is based on the assumption that both a higher rate of unemployment and a worsening of inflation create economic and social costs for a country.

The creation of the Misery Index is often wrongly accredited to Chicago economist Robert Barro, due to the formulation of what is called the Barro Misery Index.  Created by Barro in the 1970s, which additionally includes the Gross Domestic Product and bank rate to the original Misery Index.

Mainstreet.com took an optimistic point-of-view and decided to work on the other end of the scale by taking into account household income, debt, employment and foreclosures to come up with the Happiness Index.

10. Wisconsin

The State of Wisconsin is located in the Northern Central area of the United States is ranked as the tenth happiest state. Wisconsin borders two great lakes and four other states: Illinois, Iowa, Michigan and Minnesota.

The main sources of Wisconsin's economy is currently manufacturing, agriculture, and health care—where it once was driven by farming, mining, and lumbering.

They spend 28% of their annual income on non-mortgage debt and 1 in every 949 mortgages end in foreclosure, while their unemployment rate is 8%.

We can thank Wisconsinites Les Paul, inventor of the electric guitar first produced by Gibson in 1952, industrial designer Frank Lloyd Wright for his great architecture and William Sylvester Harley for the legendary Harley Davidson Motorcycle.

9. West Virginia

Ranked as the ninth happiest state is West Virginia—located in the Appalachian, one of the oldest mountain ranges in the world. West Virginia is bordered by five states: Virginia, Kentucky, Ohio, Pennsylvania and Maryland.

Coal is West Virginia's main resource and is second in the nation as a top coal-producer. Not surprisingly, coal-fired plants generate nearly all electricity for the entire state. Farming is also practiced; however, on a limited basis because of the mountainous terrain making it extremely difficult.

West Virginia's unemployment rate is 6% and they spend 37% of their annual income on non-mortgage debt with 1 in every 11,928 mortgages ending in foreclosure.

Pearl Buck, author best known for her novel "The Good Earth," comedic actor Don Knotts and Chuck Yeager, the first pilot to fly faster than the speed of sound are just a few famous West Virginians.

8. South Dakota

South Dakota is named after the Lakota and Dakota Sioux American Indian tribes and is ranked as the eighth happiest state according to the index. It is surrounded by six states: North Dakota, Minnesota, Iowa, Nebraska, Wyoming and Montana.

The service industries of retail, finance, and health care are the largest economic contributors in South Dakota. Other important contributors are government spending with Ellsworth Air Force Base, agriculture and tourism.

The current rate of unemployment in there is 5% and they spend 38% of their annual income on non-mortgage debt with 1 in every 9,160 mortgages ending in foreclosure.

We can thank South Dakotan and American Physicist Ernest Lawrence, best known for his invention of the cyclotron, a device to accelerate nuclear particles and used in the discovery of the trans-uranium elements.

7. Wyoming

Coming in as the seventh happiest state is Wyoming, located in the Northwestern region of the United States where it is mostly dominated by the mountain ranges and range-lands of the Rocky Mountain West. The six states that encompass Wyoming are Montana, South Dakota, Nebraska, Colorado, Utah and Idaho.

Wyoming’s economy is supported by coal (the largest coal-producer of the U.S.), natural gas, coal-bed methane, crude oil, uranium, and trona.

The unemployment rate in Wyoming is 4% and they spend 37% of their annual income on non-mortgage debt with 1 in every 2,920 mortgages ending in foreclosure.

Famous Wyomingites include actor Harrison Ford, abstract artist Jackson Pollock, and children's book author Patricia MacLachlan.

6. Oklahoma

Oklahoma, the sixth happiest state is located in the South Central region of the United States. The name is derived from the Choctaw words okla and humma, meaning "red people," and is bordered by Kansas, Missouri, Arkansas, New Mexico and Colorado.

The economy is based in the sectors of aviation, energy (one of the nations top-producers of oil and natural gas), transportation equipment, food processing, electronics, and telecommunications. Oklahoma is home to six Fortune 500 companies and one additional Fortune 1000 company. Rated as one of the most business-friendly states with one of the lowest tax burdens.

The current rate of unemployment in Oklahoma is 6% and they spend 32% of their annual income on non-mortgage debt with 1 in every 1,668 mortgages ending in foreclosure.

A few famous Oklahomans are Sylvan Goldman, inventor of the first shopping cart, Carlton Cole Magee, inventor of the parking meter and Sam Walton, founder of Wal-Mart.

5. Louisiana

The coastal State of Louisiana is ranked as the fifth happiest state in the nation and is bordered by Texas, Arkansas, Mississippi and the Gulf of Mexico.

The diverse economy of Louisiana is supported by energy (petroleum and natural gas), seafood (the world's largest supplier of crawfish), agriculture (cotton, soybeans, cattle, sugarcane, poultry and eggs, dairy products, and rice), industry (chemical products, petroleum and coal products, food processing and transportation equipment and paper products). Tourism plays a very important role in the economy and more recently the industry of cinematic film is engaging its site in several cities there.

The unemployment rate in Louisiana is 6% and they spend 33% of their annual income on non-mortgage debt with 1 in every 3,833 mortgages ending in foreclosure.

Famous Louisianians include Michael DeBakey, inventor of the first artificial heart, fashion designer Geoffrey Beene, singer Fats Domino, novelist Truman Capote and noted penny-pincher Darlene Marie.

4. Hawaii

The State of Hawaii is actually a collection of islands located in the Pacific Ocean and is currently ranked the forth happiest state in the United States, according the Happiness Index.

The history of Hawaii's economy was once supported by industries, whaling, agriculture (sugar cane and pineapple), military, tourism and education. However, new efforts are underway in an attempt to diversify the economy. Current supporting sectors of Hawaii's economy include food processing and apparel, food exports including coffee, macadamia nuts, pineapple, livestock, and sugarcane.

The current rate of unemployment in Hawaii is 7% and they spend 25% of their annual income on non-mortgage debt with 1 in every 1,504 mortgages ending in foreclosure.

We can thank Hawaiians Henry Ginaca, inventor of a mechanism automating peeling and coring of pineapples and Kenneth J. Onion, award-winning knife inventor. He also devised a helicopter mechanism while serving as a Marine that was adopted for use by the military.

3. Kansas

The Midwestern State of Kansas is located in the Central region of the United States and is ranked as the third happiest state according to the index. Kansas is bordered by Colorado, Nebraska, Missouri and Oklahoma.

The economy is based in the sectors of agricultural (cattle, sheep, wheat, sorghum, soybeans, cotton, hogs, corn, and salt), industry (aerospace, transportation equipment, commercial and private aircraft, food processing, publishing, chemical products, machinery, apparel, petroleum and mining) and energy, which has steadily declined since the 1990s.

Kansas' current rate of unemployment is 6% and they spend 29% of their annual income on non-mortgage debt with 1 in every 1,834 mortgages ending in foreclosure.

We can thank famous Kansans Walter Chrysler, founder of the Chrysler Corporation in 1925, Omar Knedlik, inventor of the first frozen carbonated drink machine in 1961 to serve the drink we have come to know as ICEE.

2. Iowa

Often referred to as the 'food capital of the world" is the State of Iowa, securing themselves with the second happiest state position. Iowa is surrounded by Nebraska, South Dakota, Minnesota, Wisconsin, Illinois and Missouri.

The economy is based in the supporting sectors of manufacturing (food processing, heavy machinery, and agricultural chemicals), agriculture (hogs, corn, soybeans, oats, cattle, eggs, and dairy products), energy (the nation's largest producer of ethanol) and also has a strong financial and insurance sector.

The current rate of unemployment in Iowa is 5% and they spend 29% of their annual income on non-mortgage debt with 1 in every 1,964 mortgages ending in foreclosure.

A few famous Iowans include Clifford Berry, co-inventor the first electronic computer, Jesse Hiatt responsible for the Delicious apple and George Nissen, inventor of the trampoline.

1. Nebraska

Located on the Great Plains of the Midwestern Region of the United States and coming in as the happiest state in the nation is Nebraska.

Nebraska's diverse economy is largely influenced by the agriculture sector (beef, pork, corn and soybeans); however, is also supported by freight transport (rail and truck), manufacturing, telecommunications, information technology, and insurance.

The current rate of unemployment in Nebraska is 4% and they spend 29% of their annual income on non-mortgage debt with 1 in every 25,187 mortgages ending in foreclosure.

We can thank Nebraskans Edwin Perkins, inventor of Kool-Aid, Joyce Hall, responsible for Hallmark Cards, and Grace Abbott, social reformer that helped to write the Social Security Act.