The Hidden Gem: Why Education Freedom is the New Economic Development

Forget industrial parks. The driver for economic growth in rural Mississippi is education freedom, which is the most powerful yet often overlooked tool in our economic development chest.

I’ve dedicated my academic research to the topic, stemming from a comment I heard years ago at Starkville City Hall: “Education is the biggest driver of community-economic development.” While lawmakers often repeat that phrase, our existing education laws fail to bring that great idea to fruition.

While the movement rightly focuses on families, teaching, and learning, there’s also a powerful economic impact to consider: when schools compete and parents have universal school choice, communities—especially rural ones—gain a foundation for stronger local economies.

In our small towns, leaders struggle to attract businesses and retain skilled talent. That challenge lies at the feet of poor academic achievement, a shrinking tax base, and a community’s inability to build a strong, unified brand or “sense of place.”

Yes, the academic success of the “Mississippi Miracle” is real, proving we have excellent teachers and that reform works. But it is not the final goal. Our current system’s failure to meet students’ needs by the 8th grade creates a wide achievement gap. According to the 2025 MAAP data, fewer than half of our 8th graders are reading and doing math at grade level, with only 41.7% in English and 47.6% in math.

When over half of our 8th graders aren’t on grade level, we are setting ourselves up for the very workforce shortage that Mississippi businesses identify as our greatest economic challenge. This predicament is reflected in our state’s labor force participation rate, which consistently ranks among the lowest in the nation (55.7%). School choice provides the natural solution through common-sense principles that drive successful businesses.

This market failure is particularly serious because, in most rural Mississippi counties, the local school district is one of the largest single employers and an important economic engine. Yet, unlike any major private local industry, be it a manufacturing plant or a regional hospital, it is rarely forced to act with a strategic focus on its customers, and in the case of schools, that’s measured by parent satisfaction. If education is truly the “biggest driver,” we must demand that the institution responsible operates with the same level of focus and commitment demanded of any successful, major employer.

Therefore, the entire issue centers around competition. In a society driven by consumers, education must adapt. When a school system needs to compete for students, the mindset changes immediately. Education freedom will encourage districts to act proactively, innovate in their missions, set the stage for the kind of graduates they want to produce, and share their story with the community. In the end, the most meaningful form of accountability is simple: parents can choose another school, creating a powerful incentive for academic improvement and reputation building.

Opponents of education freedom often worry that school choice policies will immediately drain local resources. This fear of a funding collapse is overstated and fiscally manageable. The initial phase-in cost of a universal school choice program represents only about 3% of the state’s total K-12 spending, which is a modest investment that is quickly eclipsed by the long-term economic benefits at the local level. When good schools attract a new family to town, their new property taxes, sales tax, and spending create a powerful economic multiplier effect. This new revenue quickly surpasses the cost of funding a student, permanently expanding the entire local tax base. School choice and competition don’t deplete local wallets. They are a long-term strategy to grow the community’s economic profile.

A well-crafted school reputation is the most effective tool a community has for attracting and keeping people. A strong school brand sends two important economic signals: first, to new businesses and industry, it signals a committed, quality future workforce; and second, to young, talented families, it provides a compelling reason to put down roots and stay in the community.

Empowering parents to choose their kids’ education is an important first step toward strengthening communities, but success depends on local collaboration. School leaders must work with economic developers, local government, and community boards to promote their schools’ strengths and unify the community’s vision. If education drives community growth, legislation must reflect this core belief.

For rural Mississippi, a foundation for stronger local economies starts with innovative thinking that empowers parents, leverages the “Mississippi Miracle,” and proves that education freedom is the hidden gem of economic development.