Pandemic to Prosperity: South

Focusing on the South to Lead the Way in Pandemic Recovery

FOREWORD

Dr. Jeanine Abrams McLean, President, Fair Count

Dr. Sarah Beth Gehl, Director, The Southern Economic Advancement Project

A civic ecosystem has been burgeoning for decades in the South and it offers a path to turn the tragedy of the pandemic into an opportunity to build prosperity and progress for all. Data and civic engagement will be critical for this to occur. Together, the Southern Economic Advancement Project (SEAP) — which works to lift up policies that address particular vulnerabilities in the South — and Fair Count — whose work focuses on strengthening pathways to continued civic participation — partnered with the National Conference on Citizenship to document the state of the South during the pandemic. State and local governments prioritizing projects for the American Rescue Plan and Bipartisan Infrastructure Investment and Jobs Act can use these findings to target disparities that ultimately undermine community resilience.

Much of the world is emerging from the worst of the Covid crisis.1 The U.S. has reached a new record number of jobs and unemployment rates are low. But several non-economic measures reflect that hardships in the U.S. have been significantly more severe than in other wealthy nations. Meanwhile, inflation is high in nearly every country and economists are predicting much of the world may fall into recession in the next year or so.2,3,4 As we brace for the challenges ahead, our review of 25 indicators will highlight areas of opportunity, as well as areas of substantial suffering across the U.S., including:

Covid  Though Covid death rates are well below the 2020 and 2021 peaks, roughly 400 people died of Covid each day in September — about 100 times more than flu-related deaths. Comparing influenza's deadliest week in January 2018 to COVID's deadliest week in January 2021, COVID deaths have been 16-fold greater than flu deaths. In addition, an estimated 4 million Americans can’t work because of Long Covid, which is more prevalent in the South. 

Economy Jobs reached a new record of 153 million in September but not all adults have been able to work and the employment rate remains about 1 percentage point below the pre-pandemic February 2020 level. In this tight labor market, millions of workers have quit jobs in search of better wages and working conditions. Average hourly wages have increased by 5% but that is not enough to keep up with inflation (8.2%). At the same time, corporate profits ballooned from a record-high of $2.7 Trillion in Q3 2020 to $3.5 Trillion in Q2 2022, suggesting large companies could pay higher wages without raising prices which would contribute to inflation. 

Health and mental health U.S. life expectancy declined the last two years, from 78.8 years in 2019 to 77.0 in 2020 to 76.1 in 2021. In contrast, peer nations experienced smaller decreases from 2019 to 2020 and have seen trends reverse with increases in life expectancy between 2020 and 2021. Health care is in short supply with 7 Southern states refusing Medicaid expansion which has contributed to hospital closures across the rural South. And 8 of the 10 states with the highest shares of residents carrying medical debt are in the South. U.S. maternal mortality rates are twice that of other developed countries and are highest in Southern states. U.S. anxiety rates have tripled since the pandemic hit and nearly half of all adults reported symptoms of anxiety or depression in AL, AR, MS, and LA in September. The majority of suicides involve a gun, with U.S. gun suicide rates at 5.7 per 100,000 in 2019, which was nearly 3 times higher than any other wealthy nation.

Climate and infrastructure In 2021, 92% of Southerners experienced at least 5 extreme heat days: when the heat index exceeded 100°F. This level of heat is dangerous, making air conditioning a literally life-saving measure. But lower-income Southerners are less likely to have air conditioning and many have poor home insulation, contributing further to high utility bills. Drinking water systems in Louisiana, Mississippi, and West Virginia, which are among the weakest in the nation, struggle to meet demand for potable water — as exemplified by the recent water crisis in Jackson, MS.

Housing The United States has been experiencing a severe housing shortage since the Great Recession when new home construction dramatically declined — driving up home prices over the decade without commensurate increases in income. More than 1 in 4 Southern renters spends the majority of their income on housing, and increasingly Americans point to housing as their community’s greatest challenge. In May 2022, the median monthly rent in the U.S. exceeded $2,000 for the first time. Despite that, only 68% of Emergency Rental Assistance funds have been distributed across the South.

Child care and well-being Women’s employment rates remain 1.2 percentage points below pre-pandemic levels in part due to child care being in short supply. Approximately 2 million parents of young children cut their work hours and 1 million couldn’t look for work due to lack of child care. The U.S. government invests significantly less in child care than other wealthy nations: only $500 per child 0-2 years old compared to an average of $14,000 annually. Child poverty — considered the greatest threat to children’s healthy brain development — has spiked again to 17% following the expiration of monthly Child Tax Credits.

Misinformation and democracy Misinformation about vaccines costs lives and misinformation about the 2020 election may cost our democracy. Despite no evidence of widespread voter fraud, more than 300 candidates running for election this November deny the results of the 2020 election, including the majority of Southern candidates for the U.S. House of Representatives. Some have said they will refuse the results of upcoming elections unless they win.6,7 More than half of all U.S. counties have no access to trusted local newspapers, including 75% of Southern counties, and nearly 1 in 10 Southerners lack broadband internet, leaving them reliant on polarized national media or misinformation-rich social media for their news.

The challenges are many, but state and local leaders have the tools and access to some of the funding they need to tackle these issues, if they choose to use them. Expediting the distribution of Emergency Rental Assistance funding and accepting Medicaid expansion could reduce human suffering and save lives. State and local governments can utilize the billions of dollars from the American Rescue Plan, Bipartisan Infrastructure Law, and Inflation Reduction Act to invest in community needs such as broadband access, affordable housing, climate action, and childcare. As threats to our democracy mount, improving and expanding civic engagement and voting enfranchisement will be essential for ensuring elected officials understand the hardships Americans are experiencing and execute policies to address them.

Download the full report here.