A West Virginia Miracle? I’m Not Feeling It.


Tyler Cowen shocks us all today by suggesting that West Virginia has been the site of a productivity miracle lately. He admits he’s mainly trying to provoke us, since West Virginia is unquestionably one of the poorest states in the nation. But it made me curious. How much has the West Virginia economy grown compared to neighboring states and to the US as a whole? I chose Maryland since it’s next door and no one considers it especially poor. Here’s what things look like:

In terms of growth, West Virginia has done OK since the start of the century. It was affected less by the Great Recession than the US as a whole—no surprise since West Virginia didn’t suffer from the housing boom and bust—but its growth rate since then has been a little below average. Ditto for median household income, which has been flat since the end of the recession.

As for cost of living, this site says West Virginia is 3 percent lower than the US. It’s a little cheaper on average to live in West Virginia compared to the rest of the country, but not by enough to matter.

So the bottom line is that West Virginia is poor; its growth rate since 2000 is above average thanks to insulation from the housing bust but below average since the end of the recession; and its cost of living is about average. That’s not terrible, but I guess I’m not feeling the miracle.

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