The gap in hourly compensation costs for manufacturing production workers between the United States and the average for 28 foreign economies has widened, reflecting the U.S. dollar's appreciation against many foreign currencies. The average cost level for foreign economies is 16 percent lower than U.S. costs, when weighted by their importance in trade with the United States. States in the US have considerable power and authority. They control local taxes, both corporate and individual. Corporations are incorporated under the law of each state and are subject to various regulations and filings by that state.
States vary considerably in their activities.
Many states have set up development agencies to encourage new companies to locate within their borders. These agencies are the source of very useful information. The outlook for 2000 is for continued moderate growth, low inflation, and a low level of unemployment. Long-term problems include rapidly rising medical costs of an aging population, sizable trade deficits, and stagnation of family income in the lower economic groups. Please read our disclaimer .