New Hampshire

New Hampshire is a small U.S. state in northern New England. It is located east of Vermont, north of Massachusetts, south of Quebec, Canada, and west of Maine and the North Atlantic Ocean. The state ranks 46th of the 50 states in land area (23,249 km2) and 41st in population (around 1.3 million by a 2003 U.S. Census Bureau estimate). It is the site of the New Hampshire primary, the first primary in the U.S. presidential elections, and has probably the most famous of all state mottos: "Live free or die," quoted from Revolutionary War hero John Stark's response to a letter honoring him for the Battle of Bennington.

Economy

The Bureau of Economic Analysis estimates that New Hampshire's total state product in 2003 was $49 billion. Per capita personal income in 2003 was $35,140, 7th in the nation. Its agricultural outputs are dairy products, nursery stock, cattle, apples, and eggs. Its industrial outputs are machinery, electric equipment, rubber and plastic products, and tourism.

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New Hampshire experienced a significant shift in its economic base during the last century. Historically, the base was composed of the traditional New England manufactures of textiles, shoe-making, and small machining shops drawing upon low wage labor from nearby small farms and from Quebec. Today, these sectors contribute only 2% for textiles, 2% for leather goods, and 9% for machining of the state's total manufacturing dollar value (Source: U.S. Economic Census for 1997, Manufacturing, New Hampshire). These traditional sectors experienced their sharp decline during the Twentieth Century due to increasingly obsolete plants and increasingly cheaper wages available in the US South.

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The current New Hampshire economy is largely driven by fiscal policy. The state has no personal income tax and advocates a frugal budget, thereby attracting commuters, light industry, specialty horticulture, and service firms from other jurisdictions with high tax policies, notably from neighboring Massachusetts. This is a viable fiscal policy for a small, high-income state with limited social service demands, but it has not been one hundred percent successful, and pockets of depressed manufacturing activity still remain. Additionally, New Hampshire's lack of a broad-based tax system (aside from the controversial state-wide property tax which former Governor Benson cut nearly in half in two years) has resulted in the state's local communities having some of the nation's highest property taxes, yet overall NH remains ranked 49th in combined average state and local tax burden, due to its lack of income or sales taxes.

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