Here’s why the South is leading in economic freedom

By atiya jordan

28 December 2023

The continued dominance of black Americans in the South is deeply driven by their personal and cultural ties.

Are you seeking financial freedom? The data shows that the “promise” of northern cities is rapidly diminishing as the economic advantages of the south eventually eclipse it.

Personal and cultural connections deeply catalyze the continued dominance of black Americans in the South. In recent years, black Americans who moved to the South, particularly those who settled in economically affluent areas – the central Southern magnet states of Texas, Georgia and North Carolina – are disproportionately young and well-educated. . The region’s growth will continue to grow despite decades of strong population and economic growth in the South, according to a report published by Bank of America.

Whether you’re looking to migrate to a new city or region, take a look at these five economic activities in the South.

Black owned businesses are growing by leaps and bounds

Source: Source: LendingTree Study 2020

From Buckhead to Midtown, Atlanta ranks “peachy curious” with the highest% of black-owned businesses at 7.4%. This is partly possible due to numerous programs and initiatives to support black-owned businesses, including the Atlanta Business League, which promotes black entrepreneurs after “Hotlanta,” Washington, D.C. (7.0%) and Virginia Beach. Provides resources and support. (6.8%).

,The ‘New Great Migration’ is a major driver of population growth

The 16 states that make up the Southern region represent 39% of the entire US population by 2022. US census regions in the South also have the highest birth rates. Between July 2021 and 2022, Florida, South Carolina and Texas were among the nation’s fastest-growing states by population. The amount of renewed black migration to the South is notable, as are the changes it has seen regarding youth and human capital in the region. Young Black people of all abilities are attracted to education and networking opportunities.

The job market is getting hotter

The South has the highest job opening rate at 5.6% and the lowest unemployment rate of any region. The South also leads among all regions in hiring workers, with a rate of 4.1%. For example, as of 2020, nearly 60% of the Black labor force (11.8 million people) is in the South, McKinsey & Company reported. Additionally, there are 10 HBCUs in Atlanta that provide education, training, and mentorship for future black business owners. Georgia and North Carolina have the second most HBCUs.

Better business tax environment and less burden

The data supports the poor business tax environment and high tax burden of the northeastern states. The average rank for the northeastern states is 38, while the average for the six states in the south is 17. This is a huge benefit for black-owned businesses. According to the Tax Foundation, the average state and local tax burden in the Northeast is 12.4% of net state product. The rate is lower at 29% in Texas, Florida, Georgia, Tennessee and the Carolinas.

Growing Gross Domestic Product (GDP) leaves Northeast behind

as mentioned bloombergThe combined GDP of Texas, Florida, Georgia, Tennessee and the Carolinas surpassed the GDP of the Northeast region, including Washington, D.C. and 11 states from Maryland to Maine. In 2022, national GDP in the South was 23.8%, while that in the Northeast was 22.4%. The South had lagged behind a decade ago.

Although it’s not clear what satisfies expats or residents in the South, the Bank of America report shows that people have a keen interest in their finances.

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Source: www.blackenterprise.com