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Wednesday, June 19th, 2024

Breaking down the South’s economic underperformance

Author:     Chandra Childers
Source:     Economic Policy Institute
Publication Date:     June 11, 2024
 Link: Breaking down the South’s economic underperformance
Stephan:  

One would think that the fact that the Red states, particularly those in the old Confederacy, have the worst economic outcomes would be a subject of national discussion.  Some are little more than third-world countries.  Here is a fact-based answer to why this is happening. Part of it is  “a key component of this model is ensuring the absolute minimal levels of regulation on businesses, including a lack of enforcement of labor laws or safety standards for workers.” This reflects what the MAGAt 2025 Project in yesterday’s SR seeks. Is this the United States you want? If not you better vote only for Democrats. In spite of their many flaws the Democrats are the only party committed to preserving democracy and fostering social wellbeing.

Summary: States that have embraced the Southern economic development model are underperforming when compared to regions that did not implement this model.

Key findings

  • The South is the region with the lowest per capita GDP relative to other regions in the United States when D.C. is excluded; Southern states are overrepresented among those with the lowest per capita GDP. 
  • Over the past 40 years, job growth across the South has lagged working-age population growth.  
  • The lower levels of unemployment across the South are misleading; the region’s low labor force participation and prime-age employment-to-population ratio (EPOP) indicate that many Southerners have become discouraged because they are unable to find a job or face serious employment obstacles. 
  • Large and intersecting racial and gender disparities in employment for Southerners reflect inequities and policy failures across the region. 

Why this matters

Far from delivering on their promises of shared abundance and economic prosperity, “business-friendly” policies have impoverished the South. The Southern economic development model is a key feature shaping the region’s economic underperformance. 

How to fix it

Instead of funneling resources to wealthy Southerners and corporations, policymakers should strengthen the social safety net, adequately fund schools, provide affordable access to childcare and transportation, and enforce labor laws or safety standards for workers.  

Full Report

In speeches and promotional materials—often seeking to lure businesses to relocate to the South—policymakers, chambers […]

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