"The evolution of the Southern economic development strategy"---A report by Chandra Childers and the Economic Policy Institute

The Economic Policy Institute is running a report by Chandra Childers under the heading "The evolution of the Southern economic development strategy" that goes far in explaining how and why the Southern economic model has failed to live up to its promises of creating shared wealth in the South. More than that, the report goes into great detail about why this should matter to people living outside of the South, why and how the Southern model threatens the living and working conditions present in other regions, and where the opportunities for uplift are.

The report is well-researched and heavily footnoted and takes a scholarly and history-driven approach. A summary of the report reads as follows:

The Southern economic development model has failed to create shared prosperity in the region. In fact, this model was deliberately designed to do the opposite—to extract the labor of Black and brown Southerners as cheaply as possible. This report examines the racist roots of the model and provides the necessary context to challenge the enduring racial hierarchy in the South.

The key findings in the report are given as

* From low wages to unfair tax policies to a weak safety net, the Southern economic development model ensures that businesses continue to have access to cheap Black labor even after the abolition of slavery.

* A key component of the Southern economic development model is low wages. Twenty states still use the federal minimum wage of $7.25, and half of these states are in the South.

* On top of struggling with low wages, many Southerners—particularly Black and brown Southerners—have trouble accessing unemployment insurance and other benefits, which are often inadequate.

* Policymakers have worked to limit Southerners’ rights to unionize and bargain collectively since unions make it hard to keep wages low and benefits stingy.

There are reasons and space to argue with some of the author's emphasis and methodology, but in the main her conclusions are sound even when they do not seem (to me) to go far enough. This is an important report that comes at a moment when Southern workers are stirring and the need for solidarity is increasing. 

Please read The evolution of the Southern economic development strategy by Chandra Childers here.