Fifty Different Economies
Within the United States are 50 states with often wildly diverse industries, employment pictures, income levels, education levels, living standards, and tax and budgetary policies. Also, each member of Congress represents his or her state’s interests, which often makes consensus and even progress on national economic policy difficult.
Meanwhile, each state sets economic policies of its own. The states lack the economic and policy-making power of the federal government and, of course, they have no monetary policy. However, each state sets its own income, property, and sales taxes and a huge range of fees, all of which have economic consequences, especially during a downturn.
In fact, most of the economic power of the ...