In Minnesota, democracy really works. A higher percentage of voters go to the polls, the business leaders genuinely care about the community, and the legislature works harder than most to provide for the people's welfare. Behind all of this is an energetic, well-educated citizenry who pay fairly high taxes and receive excellent services in return. If making lots of money and driving a fancy car are your goals, however, Minnesota is not the state for you. Income levels are moderate, and Minnesota is not in the top 10 states in terms of increased income (data from 1980-87). The excellent diversification of the state's economy was exemplified by its survival of the 1982 recession. Minnesota leads the nation in the percentage of young people who graduate from high school; however, demographics indicate some problems on the horizon. Youth poverty in the state has increased dramatically since 1980, and many women are raising children alone without much job skill training. Additionally, minority populations are concentrated in the Minneapolis and St. Paul city limits, and their movement to the wealthy and successful suburbs has been slow. Currently the state does not have a strategy for stemming this increase in poor children. (25 references) (KM)