
illustration by Molotok007/ dreamstime
A fundamental principle of business is that competitive advantage is found in differentiation. But the trick is in finding that difference and deciding how to invest in it.
The same goes for cities, and just like a business, they can overlook an asset that should be obvious. In Memphis, this regularly undervalued asset is the increase in the school-age population.
Memphis is home to more than 150,000 children under the age of 18 — the equivalent of the total populations of Collierville, Germantown, and Bartlett combined. It’s an anomaly for Memphis that’s crying out to be seen as a competitive advantage.
In Memphis, 25 percent of the population is under 18. In Atlanta, it’s 17.2 percent; in St. Louis, 18.5 percent; in Austin,18.7 percent; and in Nashville 20 percent.
It’s a difference that comes into stark relief when Memphis is compared to Nashville. Tennessee’s largest city has 60,149 more people than Memphis, and yet, Memphis has 12,564 more children. Our young people are a huge asset waiting to become a competitive advantage. We’ve all heard axioms like “what makes our community special are its people” and “children are our future; teach them well, and let them lead the way.” However, while repeating these truisms, we are not always thinking of the students sitting today in the public classrooms of Memphis schools.
The kind of robust, inclusive economy that Memphis wants begins in its classrooms today. Better-educated workers attract better jobs and higher salaries that can keep our graduates here.
They are often cast as challenges at best and problems at worst, rather than being seen as the opportunities they represent and the talent they can become in attracting jobs and economic growth for Memphis.
For those quick to make judgments about Memphis, the fact is the increase in the number of children here is part of a Mississippi Delta phenomenon: families are larger in this region. For example, when Shelby County’s under-18 population is added to that of Memphis, the under-18 population goes up, not down.
Here’s the thing: 25- to 34-year-olds with college degrees — the gold standard for today’s economy — are concentrating in about 15 cities. Memphis is not one of them, but while others fight for these workers, Memphis has the potential to strike gold by making the most of the kids in our classrooms.
It’s one of those times when research and common sense converge. Understanding that one in four people in Memphis is younger than 18, we must prioritize their potential to drive a better and expanded economy.
Memphis-Shelby County Schools should be seen as being in the talent business, or the human capital business, if you prefer.
Portland economist Joe Cortright’s advice: Do a better job of educating and become a more attractive place for the well-educated who are on the move or thinking about moving.
There’s no argument that Memphis has made major strides. A transformed riverfront is capped off by Tom Lee Park; the new Memphis Art Museum is due to open downtown in late 2025; there are greenlines and blue lines that are the envy of other cities; neighborhood parks and community centers are being reborn through the Accelerate Memphis program. In addition, Mayor Paul Young’s program to eliminate blight once and for all is producing encouraging results. Two long-derelict buildings downtown – 100 North Main and the Sterick Building — are coming back to life, a nationally prominent tennis center has opened at Audubon Park adjacent to its new golf course, Overton Park continues to pursue its plans for that beloved public space, and much, much more.
It’s proof of what Memphis can accomplish when it aims high and acts boldly. Unfortunately, when the subject turns to improving our schools and enhancing student performance, people’s eyes glaze over, although it’s hard to think of a single objective that can do more to transform the economy.
The good news is that high school graduation rates are improving, but the ultimate test is whether students can also be accepted to college and into the graduation line receiving degrees. For decades, among the 50 largest cities, Memphis has ranked toward the bottom in its percentage of college-educated workers.
That’s a drag on the economy. As Cortright’s research has concluded, 60 percent of a city’s economic success comes from its percentage of college-educated workers.
Here, tax incentives often reflect the belief that Memphis workers can’t compete for jobs in a knowledge-based, technology-focused economy. After all, tax breaks waive millions of dollars in taxes for education, an indication of the failure to see schools as a crucial economic development strategy.
David Ciscel, economics professor emeritus at the University of Memphis, has said we are selling ourselves short. “While workforce development is fine, and education/training is even better, the workforce development model has the issue backwards. The labor force gets better when the jobs get better. We tend to develop new jobs that do not demand technical training or university/college educations. Traditionally, we tend to believe that high wages drive businesses to relocate, but could it be our fate that Memphis salaries are just too low to inspire innovation and development in the local economy?”
Clearly, something needs to change. A recent “click survey” by a job search firm indicated that over a two-year period, Memphis ranked third in the share of recent college graduates who were looking for a job outside our metro area.
So, it’s a vicious cycle. The kind of robust, inclusive economy that Memphis wants begins in its classrooms today. Better-educated workers attract better jobs and higher salaries that can keep our graduates here.
Here’s the proverbial bottom line: Traditional economic development priorities that fail to treat young talent in our classrooms as our ultimate disruptive strategy are a missed opportunity for our region to move beyond the low-wage, low-skill jobs economy once and for all.