By William Cork

It might come as a surprise to many—especially across the Atlantic—that Mississippi, long labeled “America’s poorest state,” now enjoys a higher per capita GDP than the United Kingdom. In a recent conversation hosted by the Institute of Economic Affairs, Douglas Carswell, President & CEO of the Mississippi Center for Public Policy and former British MP, laid out a compelling case for how Mississippi’s embrace of economic freedom is yielding results that Britain would do well to learn from.

“People in Britain will be shocked to hear that Mississippi is now more prosperous than the UK,” Carswell says. “But that’s the truth. And the reason isn’t complicated—it’s about the choices we’ve made.”

As someone deeply engaged in Mississippi’s economic development and policy planning, I found Carswell’s argument both refreshing and instructive. Mississippi has become a test case for how targeted policy changes—focused on tax reform, labor deregulation, and education innovation—can unlock growth in even the most economically disadvantaged regions. And yes, it’s working.

The first point Carswell underscores is tax reform. “We’ve passed legislation that will completely eliminate the state income tax by 2037,” he explains. “We’re moving to a flat-rate income tax, and eventually we’ll have none. That sends a clear signal to businesses and workers.”

This kind of tax clarity makes a difference. It not only makes the state more attractive for new investment, but it also allows people to keep more of what they earn. Compare that with the UK, where the tax burden is at a 70-year high. Carswell doesn’t mince words: “The UK is stuck in a 20th-century model. There’s no incentive to produce, to invest, or to innovate.”

Mississippi, by contrast, is leaning into competitiveness.

Second, Carswell praises Mississippi’s aggressive rollback of occupational licensing.

“We’ve removed a lot of unnecessary regulation that prevents people from working,” he says. “You shouldn’t need a state license to be a hair braider or a florist.”

These are reforms that go straight to the heart of opportunity creation. In Britain, the bureaucracy is often stifling—not just for entrepreneurs but for anyone trying to get ahead. Carswell’s experience in both systems makes the comparison stark.

“In the UK, you have bureaucrats and technocrats who think they know better. In Mississippi, we’re putting power back in the hands of individuals.”

Another area where Mississippi pulls ahead is energy policy. By avoiding green mandates that drive up energy costs in Europe, the state has kept energy prices low—and stable.

“We’re not hostile to renewables,” Carswell clarifies, “but we’re not going to impoverish people to signal virtue. Low energy prices mean families and businesses can thrive.”

That one point alone puts Mississippi ahead of many Western economies that have overburdened themselves with regulations in the name of environmental responsibility but have failed to deliver affordable, sustainable energy in return. Governor Reeves’ recently announced Energy Power Play initiative will elevate this idea to a point of action.

One of the most surprising elements of Mississippi’s success story is education. Despite its reputation, Mississippi is now leading the nation in early literacy gains. Carswell attributes this to a focus on phonics-based reading instruction and real accountability.

“We said, if a child can’t read at grade level by third grade, they don’t advance. That’s tough love, but it works.”

Mississippi’s education reforms don’t stop at literacy. The state is part of a growing movement in the U.S. for school choice. “Fifteen or sixteen states now have universal school choice,” Carswell notes. “Parents can take their child’s education dollars and go wherever they want—public, private, or charter.”

This is a revolution in accountability and empowerment. And again, it contrasts sharply with the UK’s centralized, bureaucratized education system.

“You want better schools? Give parents the power to walk away from the bad ones,” he says.

Carswell is clear-eyed about the causes of Britain’s decline. Despite voting for Brexit and electing a series of nominally conservative governments, the UK has drifted further into technocratic inertia.

“Britain hasn’t really had a conservative government in 28 years,” he says. “We’ve had Blairism dressed up in different colors.”

The result? Ballooning welfare rolls, housing shortages due to planning regulations, and a culture of dependency.

“The UK is a country where the state is everywhere, and the individual is nowhere,” Carswell remarks. “That’s not how you build prosperity.”

He calls for radical reform: cutting public spending, abolishing the Equality Act and Human Rights Act, and upending the planning system to free up housing supply.

“This isn’t about left or right anymore. It’s about whether we believe in the individual or the state.”

For those of us working in economic development, Carswell’s message is clear: pro-growth policies work when they empower people. Mississippi didn’t wait for Washington to give it permission to modernize. It made bold decisions at the state level—decisions that would be politically unthinkable in much of Europe. Many of Carswell’s ideas should be made manifest in Mississippi and with a supermajority of conservatives in the legislature and in all statewide offices, there is no excuse for not getting it done.

And while the UK is a country with enormous strengths—world-class institutions, a deep talent pool, and a proud industrial tradition—it is being held back by a mindset that prioritizes control over competition. Mississippi should not make the same mistakes.

“Mississippi doesn’t have London’s history, wealth, or institutions,” Carswell says. “But we’ve got something powerful: a belief in the dignity of work and the importance of economic freedom.”

That belief drives what I do in economic development here in Mississippi and it’s a belief that’s paying off.

Economic development is a choice. Mississippi chose reform, resilience, and risk. Britain chose stagnation, safety nets, and status quo.

One is rising. The other is falling behind. It’s wonderful that a Brit is reminding Mississippians that while we have work to do, we have momentum and this is our time.

Watch the whole interview here: