8 Reasons why Arkansas is so poor!


Looking at Arkansas’ population and GDP, one might think that the state is doing well. However, looking closer reveals a much different story. The median household income in Arkansas is only $49,475, which is less than the national median income of over $64,994. These numbers demonstrate just how impoverished the state of Arkansas actually is. But are there other factors responsible for this? Read the reasons why Arkansas is so poor below!

Reasons why Arkansas is so poor

1. Weak Industrial base and lack of diversification

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One reason for this is that its industrial base is weak. The state has few Fortune 500 companies and a very small number of large businesses. This lack of diversification means that the economy is very dependent on one sector, which makes it vulnerable to economic downturns. Additionally, the state has had little success in attracting new businesses, which has led to high unemployment rates.

This makes it difficult for the state to become economically strong. Additionally, there is poor infrastructure which makes it difficult for businesses to expand and create more jobs.

2. Low population density

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Arkansashas a low population density and a limited amount of land. This makes it difficult for businesses to thrive and for people to find jobs. Additionally, the state is dominated by agriculture, which is not as lucrative as other industries. As a result, many people have left Arkansas over the years, making it one of the poorest states in the country.

This means that there are a lot of empty spaces and people have to travel a long way to find things that are needed. It also makes it difficult for businesses to get started because there isn’t enough population to support them.

3. Lack of natural resources

Photo Credit: Arkansas Oil & Gas Commission

Arkansas is a poor state because it lacks many natural resources. The most important of these resources is oil, which is responsible for much of the state’s economic problems. Arkansas has only limited coal and natural gas reserves, and its agricultural sector is weak compared to other states.

Furthermore, the state has few manufacturing plants and no major tourist destination. Consequently, Arkansas’ economy depends largely on the income generated from its oil and gas reserves.

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4. High reliant on government spending

Another reason why Arkansas is so poor is that it is highly reliant on government spending. The state has a high percentage of people who are in poverty, and its economy is ranked near the bottom of all fifty states.

Government spending is one of the main factors contributing to this situation since it disproportionately benefits the wealthy while leaving the majority of Arkansans behind. Reforms that would allow for more private sector investment could help to improve the state’s economy and reduce its dependence on government spending.

5. Lack of access to healthcare

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Arkansas is one of the poorest states in the United States. This is largely due to the lack of access to quality healthcare. Many people in Arkansas lack health insurance, and those who do have it tend to pay high premiums and copayments.

This leaves them with little money left to pay for other necessary expenses, such as food or rent. As a result, many Arkansans are unable to get the medical care they need or afford to pay for it. This has a negative impact on their overall health and well-being, and it contributes to the state’s poverty rate.

6. Low level of education

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One of the reasons that Arkansas is so poor is that the level of education is low. The state has only 23.8% of the population with a college degree, which is below the national average of 37.9%. This lack of educated people means that businesses have a harder time locating in Arkansas and they are less likely to start up.

Additionally, there are few opportunities for people who lack a college degree to get jobs in other industries. This leaves many Arkansans stuck in poverty and unable to improve their situation.

7. High unemployment rate

Arkansas has a high unemployment rate, which is likely due to the state’s poor economy. The state has been struggling since the recession hit in 2008, and it hasn’t been able to recover since then. The high unemployment rate is also due to the fact that many people who have jobs are working in low-paying positions. This means that they earn a lower salary than they would if they had a job in a higher-paying position. As a result, they are unable to afford to live in Arkansas and commute to work.

Arkansas also has a low level of education, which makes it difficult for employees to find jobs that match their skills. Additionally, there are a lot of abandoned businesses in Arkansas, which hurts the economy even more because they take away jobs from productive businesses.

8. Arkansas History

Arkansas has had a long and troubled history. The state was originally part of the Louisiana Territory, and it was acquired by the United States in 1819. At that time, it was known as the Arkansas Territory. Arkansas became a state in 1836. Throughout its history, Arkansas has been plagued by problems including poverty, crime, and corruption.

Today, many of the problems that Arkansas experienced in the past are still present. The poverty rate is high, and there is a high level of crime. Corruption is also a problem, particularly in politics. This is due in part to the fact that Arkansas is one of the most Republican-controlled states in the country.

Also Read // 5 Reasons why West Virginia is so poor! 


Arkansas is one of the poorest states in the US, and for a variety of reasons. The economy has been struggling since the recession hit, and many Arkansans have had to take on multiple jobs just to make ends meet. There are also several significant challenges that face the state, including a high rate of poverty, low levels of education and workforce participation, and a lack of access to health care. It will likely be some time before Arkansas makes significant progress in reversing its economic challenges, but with hard work and perseverance, it is possible.

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