Mississippi's Economic Engine: Firing on All Cylinders

From Laggard to Leader: A Remarkable Turnaround

Forget the old stereotypes. Mississippi's economy isn't just growing—it's booming. New data from the U.S. Bureau of Economic Analysis reveals that Mississippi was the second-fastest growing state in the last quarter of 2024, outpaced only by Arkansas. This isn't a one-off; this surge builds on previous quarters, pointing to a powerful, sustained trend.

For years, Mississippi languished at the bottom of economic rankings. But the reality is, our per capita GDP surpassed Britain's in 2023 and is poised to overtake Germany's this year. If this momentum continues, we're on track to leapfrog several other U.S. states within the next decade. That "last place" label? It's peeling off, revealing a dynamic and prosperous Mississippi.

The Secret Sauce: Free Market Reforms

The key to this transformation? Embracing free market principles. High taxes, stifling regulations, and entrenched special interests once held Mississippi back. The old strategy of relying on federal handouts proved a dead end. Today, bold leadership and pro-growth policies are driving our success.

Fueling the Fire: Key Policy Changes

Several key policy changes have ignited Mississippi's economic engine:

Tax Cuts: Since implementing a flat 4% income tax in 2022, Mississippi has seen a staggering $19 billion in inward investment, according to the Mississippi Development Agency. Businesses are drawn to our increasingly competitive tax environment.

Flexible Labor Market: Building on our "at-will" employment status, a 2021 law eased occupational licensing requirements, reducing bureaucratic hurdles for businesses.

Business-Friendly Planning: While other states bog down businesses in red tape, Mississippi streamlines the approval process, making it easier to invest and grow.

Cheap Energy: With new data centers on the horizon, Mississippi's affordable energy—powered by natural gas and nuclear—is a major draw. At around 13.43 cents per kWh, our electricity costs are a fraction of California's 34.26 cents, providing a powerful advantage.

The Future of Growth: Doubling Down on Reform

These pro-growth policies are the result of courageous leadership. Yet, significant hurdles remain. Just weeks ago, our State Senate leadership maneuvered against further income tax elimination. Imagine the possibilities if they fully embraced free-market reforms.

While surrounding states embrace school choice, our Senate has blocked even modest steps in that direction. Similarly, outdated "certificate of need" laws stifle healthcare innovation, and Senate leaders have resisted reform efforts. Mississippi's rise is undeniable, but to truly reach our potential, we must double down on these critical reforms, especially school choice.

"Mississippi is on the rise, but we need to double down on pro-growth reforms, especially school choice." - Douglas Carswell, President and CEO of the Mississippi Center for Public Policy