In the wake of Covid-19, the economy reeled from the devastating effects of lockdowns, logistical shortages, layoffs, and business closures. However, as the dust is starting to clear and the economy is getting stronger, it is important to consider how Mississippi can increase its recovery rate for jobs, employment, and economic growth.
Mississippi led the way as one of the first states to begin lifting the economic restrictions brought about by the pandemic. Mississippi was also one of the first states to proactively encourage people to get back to work by rejectingadditional federal unemployment benefits. Despite growth, Mississippi jobs are still recovering. State leaders should implement recovery-minded policies that support economic growth and help the state come back even stronger than before.
The policies that would give Mississippi an economic boost have numerous implications and reach across almost every sector in the state. Yet, these relatively unsophisticated policies could really lead to lasting growth for the state.
On the fundamental level, policymakers should take actions that will stop the state government from taking money right out of the citizens’ wallets through an income tax. The state income tax should be abolished. As so many rebuild what they lost during the economic devastation of Covid, Mississippians need every dollar they can get. While the federal government in Washington is printing more money and inflating the dollar to fund direct payments, state leaders in Mississippi have the opportunity to make a meaningful difference by just leaving Mississippian’s incomes alone.
Further, policymakers in Mississippi can help the citizens of the state by removing burdensome regulations on businesses. This can be done through widespread regulatory rollbacks, as well as through innovative programs like regulatory sandboxes. In 2020, Mississippi had the nation’s highest increase in new business applications as thousands of new entrepreneurs worked to support themselves and their families during Covid. By lowering excessive regulations and pursuing economic freedom, Mississippi will create an environment that helps these entrepreneurs stay in business for the long term as they navigate the challenges that face new businesses.
There is little debate that policies to expand economic growth are more important than ever in the wake of Covid. But Mississippi needs action to get this economic growth moving. By cutting back taxes, lowering regulations, and putting faith in the success of free-market principles, Mississippi just might have a chance to coming back from the pandemic stronger than ever before.