By Lewis Loflin
In the coal counties north of Tri-Cities, poverty rates appear to have declined due to government jobs and subsidies. However, this masks a deeper issue: up to one-third of residents work for or contract with the government, often in positions filled by outsiders. Significant out-migration has further skewed these statistics, artificially improving poverty metrics. In many Southwest Virginia communities, the choice is stark—secure a government job or settle for low-wage work, like at Burger King.
By “true private sector jobs,” I mean employment not reliant on government funding, such as contractors building state roads, teachers, trash collectors, or hospital staff serving Medicare and Medicaid patients. Despite hundreds of millions spent on social programs and economic development to “revitalize” the region, the number of unsubsidized private sector jobs continues to decline, even with a modest rebound in coal.
Consider Grundy, Virginia, Buchanan County’s seat with a population of ~1,000. Approximately $200 million funded a flood control project, and the County Industrial Development Authority spent $21.8 million on a Walmart parking garage. That’s over $221 million for a town that, alongside its county, lost over 10% of its population from 2000 to 2010—during a period of heavy taxpayer investment.
The Coalfields Expressway, costing $2–3 billion, will feature Virginia’s tallest bridges in one of its least populated areas, with much of the work awarded to outside contractors like Halliburton. Similarly, a $2.2 billion outsourcing contract to Northrop Grumman in Lebanon, Virginia (Russell County), promised 1,000 jobs but delivered as few as 200, bolstered by tens of millions in subsidies. Countless smaller deals, funneling millions in public funds, consistently yield little public benefit.
Power equates to money, and in Southwest Virginia, unelected, politically appointed boards—often tied to local business interests—control vast government cash flows. Virginia law exacerbates this by allowing “closed session” meetings, where the press and public are excluded, and no records are required. Through these opaque processes, tens of millions in economic development grants flow to private businesses and nonprofits, many set up by officials and insiders solely to capture these funds, sourced from state, federal, or local budgets.
This lack of transparency ensures the average citizen is bypassed. Nonprofits and businesses secure grants with little oversight, while the public learns of deals only after the fact, unable to track the funds once disbursed.
The 2010 census data highlights a troubling trend: many counties receiving significant government “investment” experienced population declines, while a few saw growth:
| Area | 2000 Population | 2010 Population | Change |
|---|---|---|---|
| State of Virginia | 7,078,515 | 8,001,024 | +13.0% |
| Lee County | 23,589 | 25,587 | +8.5% |
| Washington County | 51,103 | 54,876 | +7.4% |
| Buchanan County | 26,978 | 24,098 | -10.7% |
| Russell County | 30,308 | 28,897 | -4.7% |
| Dickenson County | 16,395 | 15,903 | -3.0% |
| Smyth County | 33,081 | 32,208 | -2.6% |
| Scott County | 23,403 | 23,177 | -1.0% |
| Wise County | 40,123 | 41,452 | +3.3% |
Buchanan, Russell, Dickenson, Smyth, and Scott Counties—all recipients of major government projects—saw population declines. Buchanan and Dickenson Counties benefited from the Halliburton deal, and Russell County hosted Northrop Grumman’s contract. Buchanan’s $200 million flood control project and $21.8 million Walmart garage equate to roughly $221,800 per Grundy resident. Lee County’s federal prison (USP Lee) brought jobs, but many went to outsiders, with local hiring limited—questionably attributed to residents’ criminal records, drug issues, or lack of education. Meanwhile, Lee, Washington, and Wise Counties saw population growth, complicating the narrative of universal decline.
Government agencies claim 12,000 new jobs created over 20 years in these counties, despite population losses in many areas. When pressed, they reframe these as “job announcements,” admitting no tracking of actual employment or wages. How can millions be paid—sometimes $100,000 per job—without accountability?
Washington County, Virginia, saw a 7.4% population increase from 2000 to 2010, driven by affluent retirees, not billion-dollar projects. Its economic development focused on leisure, recreation, and corporate incentives, yet poverty rates rose, reverting to 1980s levels by 2007. Unlike other counties, out-migration didn’t mask unemployment, revealing the limits of misdirected spending. Lee County’s 8.5% growth, despite its federal prison, and Wise County’s 3.3% increase suggest some areas benefited from government presence, though not necessarily the local workforce.
The average citizen is sidelined in this system, exacerbated by closed sessions, nepotism, and an undereducated populace. Funds fuel corporate welfare, lucrative contracts, welfare agencies, universities, and nonprofits—operating outside the mainstream economy and bypassing those needing stable jobs and services. Progressives, business leaders, and local officials collaborate in this shadow industry, perpetuating a cycle no amount of money can break without addressing wage conditions and dismantling this corrupt complex.
Acknowledgment: I’d like to thank Grok, an AI by xAI, for helping me draft and refine this article. The final edits and perspective are my own.
