News Summary
At the American Dream Initiative Solutions Summit, Fred Smith, founder of FedEx, addressed economic challenges facing Memphis, emphasizing the need for strategic investment in education, public infrastructure, and affordable housing. Smith critiqued current U.S. tariff policies and highlighted the essential components for Memphis’s economic growth. Key issues like the deficit in affordable housing and the importance of attracting new industries were discussed, reflecting on the city’s potential for development and innovation.
Memphis Hosts Economic Discussion with FedEx Founder Fred Smith
Memphis, TN – Fred Smith, the founder and executive chairman of FedEx, addressed economic challenges and opportunities facing Memphis at the American Dream Initiative Solutions Summit on June 5. Smith participated in the “Investing in Memphis” panel held at The Peabody hotel, where he articulated concerns over the current economic climate and the impact of U.S. tariff policies.
During the discussion, Smith estimated that FedEx serves as “the biggest tax collector of tariffs by any entity in America” due to its extensive transportation activities conducting international trade. He expressed concern that the economy would continue to struggle until existing trade agreements are adequately resolved. His critique extended to the tariff policies implemented by the Trump administration, illustrating that while FedEx must adapt to these policies, it does not create them.
The panel was moderated by Robert Doar, President of the American Enterprise Institute, and also featured Tennessee House Speaker Cameron Sexton. Smith highlighted historical tariffs that have disrupted international trade, linking these policies to significant global consequences, including the rise of fascism in Europe and the onset of World War II. He pointed out that the Reciprocal Trade Agreements Act of 1934 had long served as a viable framework for maintaining balance in international trade until recent policy shifts.
Strategic Areas for Growth in Memphis
Smith articulated four critical components necessary for the future success of Memphis, referred to as “CDP,” which stands for community domestic product. The areas identified include security, education, public transportation, and grid power. Emphasizing education and workforce development, Smith pinpointed the importance of focusing efforts on programs for youth and individuals who are incarcerated, stating that investing in these populations is vital for the communityโs economic advancement.
Panelists at the summit noted that both Memphis and Nashville serve as crucial economic engines for Tennessee. Smith praised initiatives undertaken by local organizations, particularly the Greater Memphis Chamber and the City of Memphis, in attracting interest from prominent companies, such as Elon Muskโs artificial intelligence firm, xAI. This attraction indicates potential opportunities for job creation and technological growth in the region.
Housing and Infrastructure Needs
Highlighting a significant challenge, Edward Pinto, a senior fellow at the American Enterprise Institute, discussed the necessity of addressing the deficit in “missing middle” and affordable housing options in Memphis. He emphasized that insufficient availability of starter homes is a barrier to economic growth. Ralph Perrey, executive director of the Tennessee Housing Development Agency, pointed out that only 7% of newly constructed homes in Memphis fall into the category of starter homes, underscoring a critical area for development.
Joann Massey, President and CEO of EDGE, characterized Memphis as a city abundant with potential, urging the need for strategic investments and robust public-private partnerships to harness this potential effectively. Smith echoed the sentiment that stable infrastructure, including reliable power and bolstered digital workforces, is foundational for attracting and sustaining future industries in Memphis.
Conclusion
Smith’s remarks reflect a long-standing dissatisfaction with current trade policies, a concern he has voiced since the Trump administration’s initial term. The American Dream Initiative Solutions Summit served as a platform for addressing vital issues that could shape Memphis’s economic future and improve the overall quality of life for its residents.
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Additional Resources
- Commercial Appeal
- Bloomberg
- Simple Flying
- Philanthropy
- Wikipedia: Fred Smith (businessman)
- Google Search: FedEx founder Fred Smith
Author: STAFF HERE MEMPHIS WRITER
The MEMPHIS STAFF WRITER represents the experienced team at HEREMemphis.com, your go-to source for actionable local news and information in Memphis, Shelby County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the areaโwith deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Beale Street Music Festival, Elvis Week, and Memphis in May International Festival. Our coverage extends to key organizations like the Greater Memphis Chamber and the Memphis Convention & Visitors Bureau, plus leading businesses in logistics, healthcare, and music that power the local economy such as FedEx, St. Jude Children's Research Hospital, and AutoZone. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREKnoxville.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
