"I don't approve of percentage raises. The rich get richer, and the poor never catch up."
Washington County Supervisor Paul Price criticized the 2008 percentage-based raises for county executives, arguing they widen the income gap between county workers and administrators. In 2007, County Administrator Mark Reeter received a $20,000 raise, followed by an additional $3,200 in 2008, while County Attorney Lucy Phillips received $13,000 in 2007 and $2,800 in 2008. In contrast, full-time county employees earned approximately $8 per hour. Price described the raises as "disproportionate," a view supported by the significant disparity in compensation.
Despite supporting the 2007 increases, Price expressed concern for lower-paid workers, stating, "I wouldn't say that I wouldn't want them to get a raise, but we've got to do something about the people who just aren't making ends meet. You've got county employees who work hard and show up, and they just keep getting farther and farther behind." He advocated for a fairer pay plan, reiterating, "I don't approve of percentage raises. The rich get richer, and the poor never catch up." Price proposed a new plan within two years, though implementing such changes in the region’s government compensation structure may face challenges.
In Southwest Virginia, government workers often earn more than their private sector counterparts, a trend driven by the decline of industries like manufacturing. As private sector jobs diminish, government employment has become a significant source of income, though Price’s critique highlights that this disparity does not extend equitably across all public sector roles.
By Lewis Loflin
Local officials often view poverty as an economic advantage, as illustrated by the following quote:
"Our labor force is a huge advantage since the county unemployment rate is twice the state average, and regionally, the unemployment rates range from 3.5 percent to 15 percent."
This perspective suggests that high unemployment and poverty exert downward pressure on wages, benefiting businesses by reducing labor costs. However, it also creates opportunities for politicians to secure state and federal funding to address these issues, often bypassing the average citizen. The funds are frequently directed toward projects that align with the interests of business leaders, the Chamber of Commerce, and local power brokers, who are often interconnected, perpetuating low wages as an economic asset.
Deceptive Job and Employment Statistics
The region is characterized by widespread working-class poverty, punctuated by pockets of extreme wealth. Areas like Eastman Chemical in Kingsport, which has lost thousands of jobs in recent years, and Abingdon, the wealthiest community in Southwest Virginia, mask the pervasive poverty affecting much of the region. For more on unemployment trends, see The Truth About Unemployment.
A common economic metric illustrates this issue:
"Per capita income is often used as a measure of the wealth of the population...Per capita income gives no indication of the distribution of that income within the country, so a small wealthy class can increase the measured per-capita income far above that of the majority of the population..."
While median income is sometimes preferred, it still fails to capture how income is earned or distributed. This analysis focuses on earned private sector income for workers in the Tri-Cities region and the economic factors impacting them.
As of the 2000 Census, Bristol, Virginia had a population of 17,367, with little growth since. It is the twin city of Bristol, Tennessee, separated by the state line running down State Street, with a combined population of about 57,000. Bristol, Tennessee has grown through annexation of parts of Sullivan County, Tennessee, a practice not permitted for Bristol, Virginia under state law. The Bureau of Economic Analysis combines Bristol, Virginia with Washington County for statistical purposes, which skews data due to Abingdon’s higher per capita income ($22,486, ranking 102nd among 375 Virginia communities) compared to Bristol, Virginia’s $17,311 (ranking 220th). Other nearby communities rank even lower: Glade Spring at $16,842 (238th), Emory-Meadow View at $15,750 (281st), and Blacksburg at $13,946 (328th), despite the presence of Virginia Tech.
The Tri-Cities region, including Kingsport and Johnson City, Tennessee, faces similar economic challenges. The influence of colleges like Virginia Intermont College (closed in 2014), King College in Bristol, Tennessee, and East Tennessee State University (ETSU) in Johnson City is often overstated. A Kingsport Times-News report highlighted ETSU’s economic impact, but failed to note that degrees from these institutions have little effect on local income unless graduates relocate. Colleges often form a closed economic system, retaining funds from government grants and tuition within their operations. As non-profits, they pay no property taxes, yet rely on public services, contributing little to job creation or the tax base outside their immediate sphere.
Educational Attainment
Only 23% of Bristol’s population over 25 has a college degree, predominantly doctors, lawyers, and government employees. The breakdown of educational attainment is as follows:
Despite the Tri-Cities region graduating thousands of college students annually, the percentage of college graduates remains below the national average. Employers often claim a shortage of educated workers, yet a college degree can be a liability, as many local employers view graduates as "overqualified." Paradoxically, regional leaders justify low wage scales by citing an uneducated workforce, perpetuating a cycle of economic stagnation. In many counties, the school system is the largest employer, further emphasizing the dominance of government jobs.
Income Disparities
Other Southwest Virginia communities reflect similar economic struggles: Lebanon ($16,678, 249th), Buchanan ($16,238, 266th), Weber City ($15,856, 280th), and Duffield ($12,046, 360th). Bristol’s demographics show a predominantly white population (94%), with 6% Black or African American. Household income distribution reveals significant poverty:
With 46% of the population earning under $25,000, housing affordability is a significant issue. Median monthly rent in Bristol is $409, but factoring in utilities (with electric rates nearly doubling since 2005 due to increases by the city-owned electric company), a conservative estimate of $600/month for rent and utilities reveals the burden: 16% of households spend over two-thirds of their income, 11% spend half, and 19% spend nearly one-third. Government standards consider spending over one-third of income on housing a burden, placing one-third to one-half of Bristol’s population at risk of housing insecurity. Public housing waiting lists exceed two years.
Cost of Living and Economic Development
Contrary to claims, Bristol and the Tri-Cities are not cheap places to live. A Kingsport Times-News study found the cost of living in Kingsport is only 11% lower than Nashville, but wages are significantly lower, exacerbating affordability issues. Local workers, such as one Wal-Mart employee interviewed, face difficult choices: high rents in Bristol force relocation to areas like Kingsport, but rising gas prices make commuting unaffordable, prompting some to consider moving to cities like Knoxville.
Bristol’s leading industries include manufacturing (22%), educational, health, and social services (16%), and retail trade (14%). According to Simply Hired, sectors like clinics, outpatient surgery centers, and home health care are among the top employers. However, job growth has lagged: Simply Hired data indicates a 26% decrease in Bristol, Virginia jobs since September 2006, despite significant economic development spending. This includes $225,000 for a seafood restaurant, $2.8 million by Bristol, Virginia for a Cracker Barrel restaurant, and $10 million by Washington County for a strip mall development. Bristol, a city of 17,000, now carries a $110 million debt, reflecting the financial strain of such investments.
Reliance on Transfer Payments
Government statistics often fail to distinguish between earned income and transfer payments (e.g., retirement pensions, disability, welfare). A report from The University of Virginia at Wise notes that transfer payments are a major income source in Bristol, where the poverty rate is 68% higher than the Virginia average. Per capita income in Bristol is only 72% of the state average, and the proportion of residents over 25 without a high school diploma is 50% higher than in Virginia. Additionally, 23.7% of Bristolians were on Medicaid in 2004, more than double the state average, underscoring the region’s reliance on medical and social services as economic drivers.
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.
