The Unfortunate Economic Legacy of Coal Mining
“From the beginning, the coal and timber companies insisted on keeping all, or nearly all, the wealth they produced. They were unwilling to plough more than a tiny part of the money they earned back into schools, libraries, health facilities and other institutions essential to a balanced, pleasant, productive and civilized society. The knowledge and guile of their managers enabled them to corrupt and cozen all too many of the region’s elected public officials and to thwart the legitimate aspirations of the people.” |
A West Virginia coal miner asleep in his home, 1946
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THE DECLINE OF COAL MINING IS NOT NEW
"Coal production has generally ramped up steadily since the conclusion of World War II, with an occasional downturn. But during the same time period the number of people employed by the industry has declined dramatically, as machines have replaced humans and engineers have invented more efficient ways to mine coal. Images published in LIFE Magazine in 1959 captured what to date remains the most precipitous sustained downturn for coal mining employment: the period between World War II and the early 1960s. During that time the number of coal employees fell from nearly 400,000 to less than 150,000 following the widespread adoption of new job-killing technology. Notes from the LIFE archive describe the coal loader — the most significant development leading to a decline in jobs at the time — as having 'mechanical arms' that 'resemble the action of the claws of a giant crab.' The machine could load 225 tons of coal in one hour, according to the notes." (Source)
"Coal production has generally ramped up steadily since the conclusion of World War II, with an occasional downturn. But during the same time period the number of people employed by the industry has declined dramatically, as machines have replaced humans and engineers have invented more efficient ways to mine coal. Images published in LIFE Magazine in 1959 captured what to date remains the most precipitous sustained downturn for coal mining employment: the period between World War II and the early 1960s. During that time the number of coal employees fell from nearly 400,000 to less than 150,000 following the widespread adoption of new job-killing technology. Notes from the LIFE archive describe the coal loader — the most significant development leading to a decline in jobs at the time — as having 'mechanical arms' that 'resemble the action of the claws of a giant crab.' The machine could load 225 tons of coal in one hour, according to the notes." (Source)
Why economic diversity matters
Economic diversity is one important aspect of sustainable economies. Like the old adage goes, you don't want to "put all your eggs in one basket." The same can be said for economies. If an area is heavily dependent upon few industries, it's more vulnerable to market shifts that can spell economic disaster. The long-term economic vitality of a community or region cannot be secured by short-term fixes. The coal industry is no exception. The coal industry and its political allies have cornered the economies in regions of the US, most notably in Appalachia.
The Appalachian Regional Commission (ARC) is a State-Federal Partnership that was founded in 1965 under the Kennedy Administration with the goal of creating sustainable economic development and improving the quality of life of people in Appalachia. A study published by ARC in February 2014, entitled "Statistical Portrait of Economic Diversity in Appalachia" (link) states the following:
The Appalachian Regional Commission (ARC) is a State-Federal Partnership that was founded in 1965 under the Kennedy Administration with the goal of creating sustainable economic development and improving the quality of life of people in Appalachia. A study published by ARC in February 2014, entitled "Statistical Portrait of Economic Diversity in Appalachia" (link) states the following:
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"Examining workforce specializations at the county level can shed further light on the relationship between knowledge diversity and economic performance. Based on a comparison with the share of employment made up by these occupations nationally, a full 70 percent of ARC counties have their largest knowledge cluster specialization in the Skilled, semi-skilled labor & machine operation cluster of occupations (see Table 7-4). Distressed and At-Risk counties are about ten percent more likely to have this cluster as their largest specialization, with the general trend reflecting a tendency for counties with higher economic status to have larger portions of their employment in service occupations. In part this tendency serves as evidence of the presence of higher skill and higher wage jobs (e.g., Medical science & health services) in counties of strong economic performance. Above average levels of service employment in these counties also reflect the demand for retail and personal services (e.g., Semi-skilled service) created by higher personal incomes." (p. 78)
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While economic diversity isn't the ONLY factor contributing to long-term sustainability, it certainly is an important one. The dependence of the United States on coal as a fuel is tied to the region's dependence upon the coal industry for employment. It's only when we begin to understand the larger picture of the forces at work keeping the coal industry alive that we can begin to address the many problems created by coal.
Differentiating between "coal miners" and "the coal industry"
While the coal industry and its political allies target environmental groups and regulatory agencies with the "war on coal" rhetoric, it's important to make the point unequivocally clear that those who are in opposition to coal industry practices do not conflate the coal industry with coal miners. It's like when Big Tobacco came under fire for their practices, those who were critical of the tobacco industry weren't "waging war" on the people working in the field harvesting tobacco. It's now understood that the industry and its product were hazardous and detrimental to the quality of life of millions of people. Likewise, the impact of coal on our environment and Big Coal's grip in economically depressed areas are interlinked problems that cannot be solved with short-sighted "solutions" such as regulatory rollbacks.
The collapse of coal
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While the coal industry has faulted regulations for their economic collapse, it's important to understand what goes on behind the scenes in the industry. Coal regions are littered with roadside, industry-sponsored billboards decrying regulators for job losses, and the coal industry turns its underground employees into anti-regulation activists by encouraging participation in counter-protests when environmentalists voice their concerns with industry practices.
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Source: DeSmog Blog
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But is there something else going on? The coal industry has semi-successfully turned eyes on regulators and environmentalists while downplaying their own corrupt practices. A 2016 US News and World Report article outlines the severity of the situation:
In 2015, Alpha Natural Resources laid off 4,000 workers, closed all but 50 mines, and filed for bankruptcy with $4 billion in debt.
"A secret list of 15 Alpha executives asked the bankruptcy court judge to allow them to give themselves nearly $12 million in salary bonuses for 2016 – while simultaneously denying about $3 million in benefits for more than a thousand retired, low-wage workers who need it for basic things like medical coverage and life insurance."
The article rather aptly observes that coal companies will "throw miners under the bus" when it suits their needs.
In 2015, Alpha Natural Resources laid off 4,000 workers, closed all but 50 mines, and filed for bankruptcy with $4 billion in debt.
"A secret list of 15 Alpha executives asked the bankruptcy court judge to allow them to give themselves nearly $12 million in salary bonuses for 2016 – while simultaneously denying about $3 million in benefits for more than a thousand retired, low-wage workers who need it for basic things like medical coverage and life insurance."
The article rather aptly observes that coal companies will "throw miners under the bus" when it suits their needs.
Doing the right thing
If the coal industry had its way, the pervasive belief would be that not only do they provide a large number of good-paying jobs, but that regulations to protect the environment are "job killers." Environmental protection and good paying jobs do not have to be an "either/or." Rather, technology and industry exists today that would not only provide a sustainable source of good-paying jobs, but would be able to do so without the environmental destruction associated with coal mining. Make no mistake, it won't be easy. But organizations such as CCC understand that change is critical to the quality of life of those facing the decline of the coal industry.
What is CCC working on?
CCC has been working closely with organizations to help address the urgent needs of those in the nation's coalfields who are most acutely experiencing coal's decline. Bringing funding to these depressed areas to help promote sustainable economic development is a primary goal. Hand-in-hand with this goal is the understanding that citizen participation is critical to the success of any economic development projects. Rather than the top-down approach of imposing development projects on a community, community involvement in the projects from the outset will be vital to achieving positive outcomes. Read more about CCC's work on the RECLAIM Act here.
CCC has been developing a project that will facilitate organization and communication between community-based organizations working directly with community members to foster sustainable economic development projects. This will be a platform for knowledge sharing, strategizing, brainstorming, and collaboration. For more information, visit www.grassrootsxchange.org.
CCC has been developing a project that will facilitate organization and communication between community-based organizations working directly with community members to foster sustainable economic development projects. This will be a platform for knowledge sharing, strategizing, brainstorming, and collaboration. For more information, visit www.grassrootsxchange.org.
