West Virginia ’ s $ 30 Billion Opportunity
PAUL DAUGHERTY
West Virginia is on the cusp of a historic transfer of wealth that could revolutionize communities through thoughtful stewardship and organized philanthropy to drive economic development , entrepreneurship , education , arts and culture and strengthen quality of life for all .
Imagine what it would be like if West Virginia and its communities had the financial resources available to build up stronger and more robust communities . What if our future was greater than those nostalgic days of the past when many of our towns , cities and counties were full of growing populations , booming economies and energizing innovations ?
Most West Virginians are unaware that right now we are at the apex of a historic moment in our state ’ s growth . We are currently on the cusp of a once-in-a-century opportunity , and if we don ’ t act quickly , it will pass us by , leaving us with immense regret and frustration .
Defining the Terms
West Virginia is currently experiencing a historic transfer of personal wealth . Not millions or hundreds of millions ; rather , billions of dollars in personal wealth are transferring from older generations , such as baby boomers , to Generation X , millennials and Generation Z .
As referenced in the 2019 Forbes article , “ The Greatest Wealth Transfer in History : What ’ s Happening and What are the Implications ,” “ over the next two decades , the U . S . will experience an unprecedented shift of demographics and finances that will likely be felt by every American .” Older generations are expected to transfer at least $ 30 trillion in wealth to younger generations during this time .
In the Mountain State , the transfer of wealth is projected to be massive based upon assessments coordinated over the past five years by Philanthropy West Virginia and financial
underwriting by some of West Virginia ’ s community foundations and the Appalachian Regional Commission ’ s former Flex-E-Grant Program . The Center for Rural Entrepreneurship , now part of LOCUS Impact Investing , has completed an assessment of 37 of West Virginia ’ s 55 counties , and , over the next 10 years , the transfer of wealth in these counties is projected to be least $ 30 billion . Over the next 50 years , those same 37 counties are anticipating a $ 263 billion transfer of wealth . With 18 counties remaining to be assessed , the transfer of wealth is even greater for the entire Mountain State .
The transfer of wealth assessment is conducted in inflationadjusted dollars and looks at criteria such as the relationships of drivers of wealth and household net worth . It is based upon reviewing public data , including :
• Income levels
• Public versus private lands
• Tax reports
• Corporate ownership and stock ownership
• Economic development projects and types of economic sources
• Natural resource predictions conservatively based on sections of the area assessed
• Long-term population predictions
• Estimated current net worth of each county
• Demographic data such as household income , age cohort , family structure , occupations , housing status , etc .
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WEST VIRGINIA EXECUTIVE