Economic Growth and Change in Inequality in Mississippi, 1950-1980

Southeastern Geographer Vol. 25, No. 2, November 1985, pp. 137-149 ECONOMIC GROWTH AND CHANGE IN INEQUALITY IN MISSISSIPPI, 1950-1980 Ronald]. Swager and Timothy A. Venable Much has been written about two major trends which have significantly impacted the Southeast since about 1960—the population shift to the Sunbelt and the economic rejuvenation of nonmetropolitan areas. (J) Discussions about population growth and economic progress usually carry the implication, if not the conclusion, that the Southeast has undergone significant development during this period. Yet Cobb argues persuasively that: . . . skyscrapers, smokestacks, and industrial parks have not destroyed the region's cultural distinctiveness, nor have they provided solutions to many of the problems traditionally associated with [the Souths] historically underdeveloped economy. In fact, industrial development has not only failed to establish general prosperity, but has left a large number of southerners mired in poverty. (2) Part of the reason for this divergence of views on southern development probably lies in the fact that there is no universal agreement on the meaning of the term "development." At least two sets of definitions may be recognized. The first equates development with economic progress, but even here a concensus has not been reached. Most professional economic developers are probably satisfied that development is achieved when a substantial number of new permanent jobs are created locally, when the local tax base expands, and when other businesses realize beneficial multiplier impacts from growth. (3) Others recognize the importance of job creation, but prefer to gauge development in terms of the entire employment or population base by monitoring changes in aggregate measures such as per capita income. Meier, for example, defines economic development as "the process whereby . . . real per capita income . . . increases over a long period of time." (4) Still others consider the structural changes which should accompany economic development. (5) They suggest that development carries with Dr. Swager is Director of the Economic Development Program and Assistant Professor of Geography at the University of Southern Mississippi in Hattiesburg, MS 39406. Mr. Venable is Research Assistant with the Mississippi Research and Development Center in Jackson, MS 39211. 138Southeastern Geographer it certain changes in a region's economic composition (industry and job mix) as well as changes in factors such as extent of local control and advancement potential. The second definition argues that development is more than just economic progress. Proponents of this view frequently follow the observation expressed by Smith that an important attribute of underdevelopment is the degree ofinequality in an area. (6) Wriggins and AlderKarlsson , for example, state that: Enlarging the economic pie without eliminating political and economic inequality will not significantly improve the . . . position of the poorest sections of the population. (7) Meier also emphasizes this element of development by stating that rises in per capita income do not necessarily translate into real economic development unless the distribution of income "does not become more unequal." (S) Thus, the benefits of economic growth, such as increasing incomes and job opportunities, cannot make their maximum contribution to development if they are available only to a portion of the total population. At the heart of this more general view of the meaning of development is the proposition that social progress must accompany or result from economic growth for overall development to occur. Thus, as Meier suggests, a decrease in economic inequality and avoidance of disparities in prosperity and growth are important goals of development plans. (9) Certainly, such goals are embodied within major federal programs to foster development such as the Public Works and Economic Development Act of 1965 and the Rural Development Act of 1972. Therefore, in this paper the term "overall development" is intended to include progress in terms of economic growth, and in terms of social advancement through reductions in inequality. Professional economic developers at the state and local levels generally agree with these goals, but often take the more pragmatic position that overall development is best achieved through well organized efforts to promote economic growth. (JO) If this assumption is correct, their emphasis on the economic component of overall development has merit. It is this assumption which defines the focus of this paper. PURPOSE AND RESEARCH DESIGN. The central question of this research is...