Editor’s note: Flyer writers will occasionally share this space.
Some news stories don’t finish where they started. This week’s “Money Matters” cover story is one of those.
Back in October, the national Economic Policy Institute (EPI) published a report critical of the South’s “business-friendly” economic policies. They favor the wealthy, are “rooted in racism,” and their promised prosperity doesn’t really trickle down the way we’ve always been told, the study says.
EPI is a nonprofit think tank “that researches the impact of economic trends and policies on working people.” The Flyer is a paper for people. Tennessee data in the report were interesting. So, I wrote a post back then outlining some of the findings. At Large columnist Bruce VanWyngarden suggested at the time that the story could make a good cover story with some local quotes and context. Does this model work for working-class Tennesseans and, especially, Memphians? That’s where this week’s cover story started.
Just as I began to report on the story, the Tennessee General Assembly began to crank up. Most of the folks who head to Nashville to make our laws every year are evangelists of the “business-friendly” economic theory. They love it, promote it, and (usually without any kind of evidence) believe that it really does work for all of their constituents, whether they own the car dealership or just work there. So, a story based on data that showed the Southern economic model didn’t work seemed well-timed.
But as I began to dig, I found new money issues in Tennessee were pressing old class frictions to the top of discussions at the beginning of the session. GOP tax cuts for the business class were flattening state revenues, making the budget even more dependent on the state’s regressive tax structure. Some argued Gov. Bill Lee’s controversial school voucher plan would take money from lower- and middle-class taxpayers and give it to the wealthy so they could pay for private schools they can probably already afford. This all comes as Lee’s administration has fumbled two federal programs to help the state’s working poor, a sign to most that those folks were not a priority for Lee.
With all this, I diverged from the main idea of the story and these class issues became the primary focus of the main “Money Matters” piece. And I feel like I flubbed the very good original idea.
Information on the new story angle edged out some enlightening commentary from two Memphis thought leaders. Elena Delavega is a professor at the University of Memphis, a Memphis poverty expert, and co-author of the annual Memphis Poverty Fact Sheet. State Sen. London Lamar (D-Memphis) is a constant voice for poor and working-class people in the legislature. Look for full interviews with both of those this week on The News Blog at memphisflyer.com under a “Money Matters” headline.
For a sample, here’s what Delavega said when I asked if pro-business policy models work for everyone: “It may help two or three people at the very top, but it ends up hurting everybody else by denying the investment in the community that would make it a livable community, that would attract people who can have a choice [of a place to live].
“So, it’s sort of like this downward spiral,” Delavega said. “We don’t invest and then become even less attractive. Then, we cut taxes. Then, there is less money for investment. We cut more taxes and so on.”
Lamar said Tennessee policies have favored the wealthy since Republicans took power in 2011. She rattled off a list of cuts including the millionaire estate tax, the luxury gift tax, the reduction in the jet fuel tax, and more. But she said there have not been big moves to aid “those citizens who are working the hardest to contribute to our economy,” especially Black and brown people. This is on purpose and permeates the system, she said.
“You can look at that in the campaign funding of Black candidates in Tennessee,” Lamar said. “We’re funded far less than Republican white folks, even white Democrats. As long as our community stays poor, then we can’t compete against rich people who have the ability, access, and resources to play in a political game in a real way.
“I think this system of racism is reinforced through classism. As long as you keep people of color poor, other white folks get to stay on top,” Lamar continued. “This, more than likely, correlates to who owns the most businesses that are doing well, who owns the corporations. What’s the income makeup of policymakers and people that they’re voting to benefit? So, you can look at all those things, not just the economics side. Racism is rooted in the whole system.”
