Compiled by Lewis Loflin
The 2008 Kids Count report highlights persistent challenges for Tennessee’s children, with child poverty rising at a faster rate than the national average. Despite some improvements, such as a significant reduction in high school dropout rates, the report underscores systemic economic issues, including low wages, limited job opportunities, and the impact of immigration on the labor market. Media coverage often advocates for increased government spending and programs, a strategy that has shown limited success over the past decade in addressing poverty, particularly for those with high school or college education.
Comparing Tennessee to Virginia reveals stark differences: Virginia benefits from higher income levels and more college graduates, largely due to government-related employment in the D.C. region. Tennessee, with a well-educated blue-collar workforce (over 90% with at least a high school diploma, 31.4% with a bachelor’s degree or higher in 2007), faces a shortage of white-collar jobs. Businesses often cite a skilled labor shortage, yet prioritize hiring low-wage immigrant labor, including illegal immigrants, over local educated workers, further depressing wages.
Lewis Loflin argues that Tennessee’s economic challenges stem from a business climate and political culture that prioritizes being “business-friendly” at the expense of workers. Tennessee’s regressive 9.5% sales tax (with no state income tax) limits its ability to generate government jobs, unlike Virginia, which benefits from federal and state employment. Immigration, particularly illegal immigration, significantly impacts wages for the working class, especially in sectors like construction, where employers often hire undocumented workers to reduce costs.
A Knoxville News Sentinel report illustrates this issue, detailing an illegal immigrant worker, Diaz-Mourillo, whose employer facilitated illegal employment by using cash cards to avoid a paper trail:
"His employer not only turned a blind eye to the illegal status of his workers but was complicit in their crime, adopting a method of payment that minimized the risk of an incriminating paper trail...When Mr. Diaz-Mourillo would be paid, he would be given a card which could be taken to his employer's bank and money would be provided to him...He certainly was not the only illegal alien working on these jobs, and his impression was that this was known by the employers."
Loflin contends that political correctness and the lack of unions in Tennessee allow such practices to persist, with employers facing little accountability. For more details, see Illegal Alien Driver Pleads Guilty to Wrong-Way Wreck, Illegal Employers to Blame and Electrolux and Illegal Aliens in Tennessee.
jacksonsun.com, June 11, 2008
The state's high school dropout rate plummeted 45 percent, from 11 percent in 2000 to 6 percent in 2006. Nationally, the dropout rate improved 36 percent during the same time frame...Tennessee also ranked in the bottom 10 in four of the 10 indicators measured: Percentage of children living in poverty, percentage of low birthweight babies, and 45th for infant mortality and teen birth rates.
So what do all the numbers mean? Well, it means that despite some problems, Tennessee is headed in the right direction. According to Linda O'Neal, executive director of the Commission on Children and Youth, Tennessee's Kids Count grantee: "Tennessee has implemented good public policies and strategies to improve outcomes for older children resulting in more children graduating from high school and fewer adolescents dying."
WPLN News Transcripts, June 12, 2008
The number of children in poverty in Tennessee increased more than twice as fast as the national average according to the Kids Count Data Book released today. Kids Count ranks the welfare of children and teens in each state using Census Bureau statistics. The report shows that child poverty rates in the state increased 15 percent versus 6 percent nationwide.
Tennessee fared worse in four of the 10 categories, especially those dealing with children in tough economic situations, like those with parents who lack stable employment. The state showed marked improvements in five categories dealing with teens, including high school dropout rates which improved by 45% from 2000 to 2006...Tennessee improved its rank this year, moving up one position to 42nd.
Kingsport Times-News, June 17, 2008
A new national report shows Tennessee continues to be an extremely challenging place for children to grow up. For 20 years, the Annie E. Casey Foundation, a Maryland nonprofit group, has issued a national Kids Count book that ranks the 50 states...In this year's Kids Count analysis, Tennessee ranked in the bottom 10th of the rankings in four of the 10 areas measured—among them 41st for the percentage of children living in poverty...If the Kids Count study were new, Tennessee's low ranking would be worrisome in its own right. But the nonprofit group has been making these assessments for two decades.
...an upward movement of just three spots in 20 years shows how achingly slow that progress has been and how much more improvement is needed...the statistical portrait the survey paints is not flattering...Clearly, many of the problems plaguing Tennessee's children derive from poverty. This latest Kids Count report relies on information compiled last year.
While money, alone, cannot address all of these problems, it's also true that Tennessee spends less than most states on the services that make a positive difference in the lives of our children...the two decades of Kids Count surveys show ample evidence that this latest marginal uptick may well be only temporary. That's because the destructive social pathologies that nourish these troubling statistics unfortunately continue to receive far too little attention...
Data from the Economic Policy Institute indicates Tennessee had the nation’s 5th largest income gap, with the top 5% earning 13.9 times the income of the poorest 20%. Between the late 1980s and mid-2000s:
Adjusted for inflation (1988–2007), the middle fifth’s income should have been $66,795, and the richest fifth’s $156,395, highlighting a real loss in purchasing power across all income levels. Loflin argues that neither wealth redistribution nor tax increases will address this issue; instead, reducing inflation or boosting incomes, particularly for lower-income workers, is necessary—a solution he believes Tennessee’s political climate is unlikely to support.
The 2008 Kids Count report cites a 99% high school attainment rate for Tennessee residents ages 18 and over in 2007, with 31.4% holding a bachelor’s degree or higher. Loflin disputes this figure, noting that for ages 25 and older, 90.2% have a high school diploma or higher. He estimates that including younger graduates (ages 18–24) would yield a rate of 95%–98%, which aligns more closely with observed trends.
Data from the 2004 Monthly Labor Review by Thomas J. Krolik provides educational attainment and unemployment rates for ages 25 and older:
The 2008 Kids Count report cites a 99% high school attainment rate for Tennessee residents ages 18 and over in 2007, with 31.4% holding a bachelor’s degree or higher. Loflin disputes this figure, noting that for ages 25 and older, 90.2% have a high school diploma or higher. He estimates that including younger graduates (ages 18–24) would yield a rate of 95%–98%, which aligns more closely with observed trends.
Data from the 2004 Monthly Labor Review by Thomas J. Krolik provides educational attainment and unemployment rates for ages 25 and older:
| Area | Less than High School | High School, No College | Some College or Associate Degree | Bachelor’s Degree or Higher |
|---|---|---|---|---|
| United States | 10.2% | 30.5% | 27.4% | 32.0% |
| North Carolina | 11.8% | 31.7% | 27.6% | 28.8% |
| Tennessee | 9.8% | 35.3% | 25.4% | 29.4% |
| Virginia | 9.1% | 28.3% | 24.8% | 37.8% |
| Area | Total | Less than High School | High School, No College | Some College or Associate Degree | Bachelor’s Degree or Higher |
|---|---|---|---|---|---|
| United States | 4.8% | 8.8% | 5.5% | 4.8% | 3.1% |
| North Carolina | 5.1% | 10.0% | 5.8% | 4.9% | 2.6% |
| Tennessee | 4.7% | 8.3% | 5.3% | 5.5% | 2.0% |
| Virginia | 3.0% | 6.8% | 3.3% | 2.8% | 2.1% |
Loflin concludes that Tennessee’s workforce is well-educated, with 90%–98% having at least a high school diploma, yet faces depressed wages due to a lack of white-collar opportunities and competition from low-wage immigrant labor.
U.S. Census Bureau data shows Tennessee’s median household income was $40,668 (2004–2005) and $40,696 (2005–2006), ranking 42nd among states. Virginia’s was $54,102 and $55,368, ranking 10th. North Carolina’s was $43,193 and $41,616, ranking 39th. Loflin attributes Virginia’s higher income to government spending and jobs, particularly in the D.C. region, while Tennessee and North Carolina, as blue-collar states, suffer from plant closings and competition from immigrant labor.
In 2000, 76% of Tennessee workers (ages 18–64) and 53.5% of children (0–17) had employer-based health insurance, dropping to 71% and 29% by 2005–2006. The decline in manufacturing jobs, which often provide health insurance (73.6% of manufacturing workers have employer-based plans), exacerbates this issue. Construction job growth, which offset manufacturing losses, slowed in 2007, with a reported loss of 200 jobs in November 2007, often benefiting immigrant workers over local residents.
Kids Count data highlights the inadequacy of Tennessee’s unemployment insurance ($275/week) and minimum wage ($7.25/hour in 2014) for family budgets. Monthly family budget requirements for a family of four in Tennessee (2006) are:
In Nashville, an hourly wage of $17.76 is required to meet basic expenses, far exceeding the minimum wage, even with two working parents.
Additional data from the report includes:
Tennessee has one of the highest Hispanic growth rates in the U.S., contributing to labor market pressures.
The Kids Count report suggests that improving access to quality child care, good schools, well-paying jobs, capital, and affordable housing—termed the “Prosperity Grid”—could enhance overall prosperity. Tennessee’s high school graduation rate was 80.8% in 2006, but Loflin notes this figure is disputed (see Failure at Virginia High School in Bristol, Virginia). The state ranks 40th in elementary and secondary performance and 45th on the “Chance-for-Success Index,” indicating significant barriers to upward mobility.
Recommendations include creating jobs with living wages and health benefits, improving worker skills, and investing in early childhood education to develop non-cognitive skills like social competence. However, Loflin argues that without addressing systemic issues—like Tennessee’s reliance on low-wage labor and failure to curb illegal immigration—these strategies are unlikely to succeed.
A 2003 study cited in the report found that rural and urban families in Tennessee share common desires: secure jobs with living wages and better education and employment opportunities for their children. Families believe that with adequate support, their children’s chances of success increase significantly. Low-wage workers need opportunities to build wealth and stability, including access to jobs with health insurance. Despite these insights, Loflin notes that little has changed in the half-decade since, underscoring the persistent economic challenges facing Tennessee’s families.
Acknowledgment: I'd like to thank Grok, an AI by xAI, for assisting in drafting and refining this article. The final content and perspective are my own.
