Economy of West Virginia
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The economy of West Virginia is one of the weakest in the United States[1][2] (only Mississippi has a weaker economy)[citation needed]. Coal is one of the state's primary economic resources. The effort of unions to organize miners is a violent chapter in the state's history. In 1933, the President of the United States Franklin Delano Roosevelt threatened to call the National Guard in order to forcibly unionize parts of Raleigh County. Nevertheless, labor organizing persisted under the leadership of John L. Lewis and the United Mine Workers.
The state has an extensive network of railroads, and much of the coal is transported by rail. The railways were once one of the largest customers for coal to drive the steam locomotives, but these have been replaced by diesel locomotives. Coal is rarely used now for home heating. Most coal today is used by power plants to produce electricity, both in West Virginia, and in other eastern states.
West Virginia was one of the first states to engage in drilling for oil. Small to medium oil and natural gas fields still exist and are scattered mostly in the Allegheny Plateau and the Cumberland Plateau in an arc throughout the western part of state.
Farming is practiced throughout West Virginia, but in a form different from large extensive cash-crop agriculture elsewhere in the USA. The modal average farm size was a smallish 140 to 179 acres (567,000 to 724,000 m²), most statistics in this section are taken from the 2002 US Census of Agriculture for West Virginia, which sold less than $2,500 of crops annually. Family and single-owner operation worked 92.7% of the farms, and an astounding 96.9% were totally or partly owned by the operator. On the other hand, only 50.5% of the state's farmers considered farming to be their primary occupation, with a significant number of hours worked elsewhere each year. It should be noted that the rural poverty rate in West Virginia is 20.4% and that this figure is five points higher than the urban poverty rate.
This description of farming portrays an independent and self-sufficient base of small land owners, but also a significant amount of rural poverty.
As can be expected in a rugged terrain, raising animals was far more important than growing vegetative crops. Income from animals exceeded income from plants by about 7 to 1, with much of the non-animal income derived from sales of fodder. The chief animals raised were cattle and chickens.
In the ridge and valley area along the eastern border near Virginia's Shenandoah Valley, subsidiary valleys are wide and there are some belts of rich soil which are extensively farmed. In 2002, all of the top five counties by agricultural dollar value were located near the eastern Virginia border.
In traditional frontier agriculture there was much gathering of wild "greens" and other vegetation to supplement the diet. One area where this practice is still significant is the gathering of wild North American ginseng, often for the Asian market. Wild gathered ginseng contributed about $2 million in 2000 to the West Virginia economy, a figure larger than many conventional cultivated vegetable and fruit crops. Other wild greens, such as sour dock, lambs quarters, and wild leek (or "ramps") are also still gathered by many for table use, although today more on the basis of avocation or keeping up traditions than out of necessity.
Along the western edges of the state the large rivers of the mid-continent erode a distance into the hills and it is here, in the west, that some dense pockets of heavy industry appear. In the Kanawha River Valley near Charleston and along the southern Ohio River Valley near Huntington chemicals predominate, attracted by a readily available labor force and access by barge carriers. Metallurgy, especially steel, has been predominant in the Northern Panhandle due to a spill-over effect from the traditional center of the US steel industry in Pittsburgh.
[edit] Appalachian Regional Commission
The Appalachian Regional Commission was formed in 1965 to aide economic development in the Appalachian region, which was lagging far behind the rest of the nation on most economic indicators. The Appalachian region currently defined by the Commission includes 420 counties in 13 states, including all 55 counties in West Virginia. The Commission gives each county one of five possible economic designations— distressed, at-risk, transitional, competitive, or attainment— with "distressed" counties being the most economically endangered and "attainment" counties being the most economically prosperous. These designations are based primarily on three indicators— three-year average unemployment rate, market income per capita, and poverty rate.[3]
In 2003, West Virginia had a three-year average unemployment rate of 5.7%, compared with 5.5% nationwide. In 2002, West Virginia had a per capita market income of $17,856, compared with $26,420 nationwide. In 2000, West Virginia had a poverty rate of 17.9%, compared to 12.4% nationwide. Fifteen counties in West Virginia were designated "distressed," and sixteen counties were designated "at-risk." No county received the "attainment" designation, and only two— Jefferson and Putnam— were designated "competitive." Nineteen counties were designated "transitional," meaning they lagged behind the national average on one of the three key indicators. McDowell County had West Virginia's highest poverty rating (and the third highest in the entire Appalachian region), with 37.7% of its residents living below the poverty line. Kanawha County had West Virginia's highest per capita income at $25,170, and Monongalia had West Virginia's lowest unemployment rate at 2.7%.[3]
