ALICE in Poverty Land in Southwest Virginia

By Lewis Loflin

I grew up in Norton, Virginia, in Wise County, and have lived in Bristol, Virginia, since 1984, witnessing firsthand the persistent economic struggles of the working poor in Southwest Virginia. The United Way’s ALICE framework—Asset Limited, Income Constrained, Employed—reveals a harsh reality in this region: over 50% of working households are either in poverty or can’t afford basic living expenses, trapped in a cycle of financial instability that corporate welfare and policy failures only deepen.

Understanding ALICE: The Working Poor

ALICE, as defined by UnitedForALICE.org, identifies households earning above the Federal Poverty Level (FPL) but below the basic cost of living, known as the ALICE Threshold. This “survival budget” covers housing, food, transportation, child care, health care, and technology, with no room for savings, car repairs, or discretionary spending. In Virginia, the ALICE Threshold for a family of four in 2023 was $67,200 annually, far above the FPL of $29,960. For many in Southwest Virginia, this describes the daily struggle: impossible choices between paying rent or fixing a car, filling a prescription or buying food, with long-term consequences for families and communities.

ALICE and Poverty in Southwest Virginia

In Southwest Virginia, the ALICE crisis is acute. According to the 2023 United Way ALICE Report, over 50% of working households in many counties are either in poverty or ALICE, unable to afford basics. In Sullivan County, TN, 39% of households struggle, while in Southwest Virginia, the numbers are even worse: Buchanan County (60%), Dickenson County (62%), Richlands (61%), Marion (56%), and Norton (55%)—where I grew up—are among the hardest hit. In East Tennessee, Johnson City (53%), Greene County (50%), and Carter County (49%) face similar challenges. In Tennessee, over 1 million working households can’t make ends meet, a crisis that drives social problems like family breakup, welfare dependency, and drug and alcohol abuse, filling regional jails with abusers and dealers.

Labor Market Collapse and Low-Wage Jobs

The Tri-Cities labor force has collapsed, dropping from 243,000 in 2008 to 218,000 by January 2025—a decline of 25,000 workers. The region lost 54,795 jobs from 2009 to 2018, and new jobs often pay less with few benefits. The federal minimum wage of $7.25, unchanged since 2009, would be $12.47 in 2025 dollars if adjusted for inflation from 1970’s $1.60. Virginia’s minimum wage is $12 in 2023, with plans to reach $15 by 2026, but Tennessee defaults to $7.25. Even at $15, a single earner working 40 hours a week earns $31,200 annually—less than half the $67,200 ALICE Threshold for a family of four in Virginia, leaving workers unable to afford basics.

Corporate Welfare and Policy Failures

Corporate welfare projects like American Merchant in Bristol, VA, which promised 405 jobs but delivered only 50—and appears abandoned as of my 2025 visits—do nothing to address the ALICE crisis. These projects, backed by millions in public funds, lure businesses with promises of cheap labor, driving down wages for blue-collar and IT workers alike. Immigration policies exacerbate the problem: in 2019, local Republican Congressmen Morgan Griffith (VA-9) and Phil Roe (TN-1) supported the Fairness for High-Skilled Immigrants Act, increasing H-1B visas that allow companies to hire foreign IT workers at lower wages, displacing American graduates burdened with student loan debt. Meanwhile, lax enforcement of immigration laws provides businesses with illegal replacement workers, further depressing wages.

Government Secrecy and Political Neglect

Regional economic planners are hostile to addressing the ALICE crisis. Republicans prioritize business interests, often opposing labor protections, while Democrats focus on identity politics and climate change, neglecting the working poor. The lack of transparency in economic development, as seen with American Merchant and other projects like the Western Front Hotel, mirrors the government secrecy I’ve criticized before. The Bristol Herald Courier, as I’ve noted, filters facts to “protect” the public, failing to hold officials accountable for these failures. In Southwest Virginia, where 52% of Wise County households struggle, and the Tri-Cities face persistent economic decline, policies favoring corporate interests over workers perpetuate a cycle of poverty and instability.