The US States With The Worst Economy
The United States of America is one of the top ten largest economies in the world, and many of its states are doing remarkably well economically. But unfortunately, there are also a few states whose economies are not faring quite as well. In this article, we’ll take a look at the US states with the worst economy and the factors which contribute to their failure.
The US economy is a complicated and diverse one, and while many of its states are generally doing better than their international counterparts, there are a select few which are suffering economically. For citizens living within these states, this can have a serious impact on their standard of living and quality of life. To better understand the severity of the situation, let’s take a look at each of the states with the worst economy and consider the factors which have led to their current economic situation.
Alabama
Alabama sits at the bottom of the list when it comes to economic status, as the state has been facing difficulties for several decades. One of the primary contributors to their economic problems is the lack of diversification in the job market, as the state is heavily reliant on industries such as automotive manufacturing and hospitality. In addition to this, many of the state’s cities have suffered due to a lack of investment and the struggling job market has made it difficult for citizens to climb the economic ladder.
Reasons for Alabama’s Poor Economy
While Alabama’s economy has continued to struggle throughout recent history, there are several reasons behind its current state.
• Lack of job diversification: Alabama has long relied on automotive manufacturing as one of its primary industries, and while this has created jobs in the past, it has also left the state vulnerable if the industry starts to wane. In addition to this, there is an overreliance on hospitality and retail which do not generally pay as well as more specialized jobs.
• Lack of investment: Without investment from outside sources, Alabama’s cities are unable to modernize and create job growth. This has also led to a lack of tourism, as well as difficulty in attracting businesses within the state.
• Poor education system: Education is essential for economic growth, but unfortunately many Alabama schools are severely lacking in both quality and resources. This has created a situation where high paying jobs are often going to candidates outside of the state, leaving those within Alabama with fewer job opportunities.
• Low median income: As of 2019, Alabama’s median household income comes in at approximately $46,000, which is significantly less than the national median. This makes it difficult for families to save money and actively invest in their futures or better their existing situation.
Kentucky
Another state with a low ranking in overall economic standing is Kentucky, which has experienced sluggish growth since its transition away from being heavily reliant on tobacco production. This has left many of the state’s citizens struggling to make ends meet in an economy with decreasing job opportunities and stagnant wages.
Reasons for Kentucky’s Poor Economy
• Lack of diversified job opportunities: Although Kentucky was once heavily reliant on its tobacco industry, it has been unsuccessful in transitioning away from this and providing more diversified job options. As a result, the state lacks the higher-wage job opportunities which would help to grow its economy.
• Decreasing population: Kentucky has experienced a decrease in population in recent years, as many of its residents move away in hopes of finding better job prospects. This both decreases the amount of tax revenue collected each year, as well as reduces the number of workers in the state and further limits job growth.
• Poor education system: As mentioned in the discussion of Alabama, a failing education system can have a serious impact on the economy of a state. In the case of Kentucky, the quality of its schools is so poor that the state regularly scores lower than the national average on standardized tests.
• Depressed wages: Wages in the state have not kept up with inflation and the average worker in Kentucky makes significantly less than the national average. This makes it difficult for families to care for their basic needs, let alone save for a brighter economic future.
West Virginia
West Virginia has struggled economically for some time, relying heavily on industries such as coal production and metalworking for job growth and income for its citizens. Unfortunately, these industries are in decline, leading to some of the most serious economic trouble in the country.
Reasons for West Virginia’s Poor Economy
• Overreliance on coal and metalworking: As mentioned, the state’s industries are slowly starting to fail and the job market is slowly diminishing. This is due largely in part to the outdated nature of the industries, as well as regulations put in place outside of the state which have prevented future investment or new sources of employment.
• Lack of diversified job sources: As a result of the state’s reliance on coal and metalworking, few other job sources have had the opportunity to rise. This has limited the job opportunities for West Virginians and prevented them from transitioning to more lucrative professions.
• Poor education system: Just like Alabama and Kentucky’s, West Virginia’s education system is failing its citizens. Residents of the state do not have the same qualifications as those in other states and are therefore at a severe disadvantage when competing with applicants from different states.
• Limited access to resources: West Virginia also suffers from a lack of resources, as the state does not have the same access to high-speed internet or quality healthcare as other states. This prevents residents from taking advantage of new technologies or staying healthy and productive, thus limiting their job prospects.
The US states with the worst economy are those that have not been able to diversify their job sources, invest in the people of their state, or provide quality education opportunities. Without these three, it’s difficult for a state to make the necessary economic changes to become a prosperous, thriving economy. While all states have their ups and downs, states such as Alabama, Kentucky, and West Virginia have yet to make the necessary changes to turn things around, and their citizens are paying the price as a result.