West Virginia, Mired in Poverty, Stuggles With Huge Chemical Spill

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By Douglas A. McIntyre Updated Published
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West Virginia has slightly fewer than 1.9 million residents. Over the past few days, 300,000 of them have not been able to drink local water because of a chemical spill with effects tap water. Outsiders claim the state has been ill-equipped to deal with the trouble. Actually, the state is so poor, and its government so strained by efforts to dig people out of poverty, it is a wonder it is equipped to do much at all.

The guilty party in the spill is Freedom Industries. Just a few industries dominate the employment base in the state. Freedom Industries is a chemical company — and a major source of jobs. The other large employers are in the coal sector, which is in retreat, leaving thousands of people without work. That leaves Freedom Industries and companies like it as essential to the state’s economy. West Virginia is expected to aggressively and strictly police these largest employers, and that leaves the state in a bind. It cannot afford to have any of them leave the state.

West Virginia’s poverty statistics are staggering. The national poverty rate is 15.9%. West Virginia’s is 17.8%. That number peaked at 18.6% in 2011, but it remains well above where it was in 2008 just before the recession. In terms of media household income, West Virginia ranked 49th among the 50 states in 2012, at $38,482.

If the past is any indication, there has not been much movement in state poverty rates and household income compared to the national figures over the past several years. And the mix of employers in West Virginia and the trajectories of their worker bases makes it likely that the state has among its challenges that the numbers will get worse.

Apparently, West Virginia did not have regulations in place that would cover a leak like the one involving Freedom Industries. Among the possible reasons is that the state has so few financial resources. Poor states do face a lack of government resources, which may be a reason that the spill was harder to prevent than in some other states. However, in West Virginia there may be a second issue. Can it afford to alienate the few employers it has left?

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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