The evolution of the Southern economic development strategy
Summary: 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.
Key findings
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.
https://www.epi.org/publication/rooted-racism-part1/