Key Facts
- Per Capita Real GDP
- $30,364 Rank: 42/50 (2007)
- Population
- 4,269,250 Rank: 26/50 (2008)
- Per Capita Personal Income
- $29,352 Rank: 46/50 (2006)
- Unemployment Rate
- 5.20% Rank: 38/50 (2008)
- Business Tax Climate Index
- Rank: 36/50 (2008)
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Kentucky: Introduction
Kentucky lies in the east central United States and borders the Ohio River. The state was originally a relatively unpopulated collection of counties that belonged to Virginia, but an influx of settlers in the late 18th century made a push for independent statehood. Kentucky split from Virginia in 1790 and was officially granted statehood on June 1, 1792. Kentucky attempted to remain neutral at the outbreak of the American Civil War, but joined the Union in 1862. Despite the official alignment of the state, a large number of Kentuckians joined the Confederate army. The state’s ideological split is exemplified by the fact that war’s top two leaders (Abraham Lincoln for the Union and Jefferson Davis for the Confederacy) were both from Kentucky.
Farming was the principal economic activity throughout the state’s early history, with tobacco and hemp as the main agricultural outputs. In the early 20th century Kentucky began to take advantage of the large deposits of coal and abundance of hydroelectric power within the state. These two features brought low-cost energy and helped spawn a manufacturing industry within the state.
Today manufacturing is still the leading contributor to Kentucky’s economy. Production of automobiles and automotive parts is the largest component of the manufacturing industry, followed by food processing and metals. Tourism is also a growing industry, thanks to the stunning scenery and southern charm. The state is also home to the Kentucky Derby, a famous horse race that draws more than 150,000 spectators annually and is considered by some as the most prestigious event in horseracing.
