Module V: American Period: Alaska's Economy

Essential Question:
What have been the major components of the Alaska economy during the American period of 1867-present

Picture I took of a fishing wheel outside of Haines

Through this module we learned of the large spectrum of components that make up the Alaskan economy. Some more prevalent at the beginning of Alaska's purchase by the US, around wars, or in more present times. Each component brought revenue into the economy, but they also greatly contributed to the employment of Alaskan residents.

State of Alaska Department of Labor
and Workforce Development

Alaska History and
Cultural Studies

Water resources include the fishing market and hunting of marine animals, predominately for fur. Approximately 6 billion pounds of seafood is caught every year (Alaska Division of Economy). The Alaska Department of Fish and Game projects that seafood contributes $5.8 billion to the economy.

Expedition possibly in Sitka, 1899
Library of Congress Prints
 and Photographs Division Washington D.C.

Tourism helps the economy in several aspects. In 2008, tourism employed approximately 25,000 individuals (Knapp, 2012). According to the Alaska Office of Tourism and Development, their trend research estimated 1,532,400 visitors during the summer months of 2010.  57% of the passengers traveled by cruise ships, 38% by air, and the remaining by highway or ferry. Tourism during the summer months has been on the slight decline since a high of 1.7 million during the summers of 2007-08 (Alaska Office of Tourism and Development).




Natural Resources in Alaska includes various minerals, oil, and timber. Oil revenue contributes approximately 88% to the Alaskan economy.

Provided by the State of Alaska Commerce
Division of Economic Development

Picture I took on our trip from
 Whitehorse to Haines.

One of the most important aspects of the economy is from federal spending. In Gunnar Knapp's publication on Alaska's Economy he has great graphs that break down spending in 2008, amongst many other attributing factors. Examples included: military procurement contracts $1989 million, salaries and wages $2206 million, medical assistance programs $693 million, highway planning and construction $383 million, airport improvement program $186 million, and Indian housing block grants $80 million. If you get a chance, definitely look as his article.


Examine Question:
What were the main reasons for the American purchase of Alaska?

John Gast, American Progress (circa. 1872)

There were multiple reasons for the United States to purchase Alaska from Russia. The United States was not the only country that was initially interested in Alaska. England, France, and Spain also had potential in the race for new territory.  A main reason to venture North was through the idea of Manifest Destiny. Westward expansion of settlers in the lower 48 states had now extended North to occupy new lands and opportunities from the Russian owned Alaska and possibly territories in Canada.

In addition, the United States was also looking for backup. With the global idea of expansionism, extending influence and controls over the lands, the United States felt the pressure with their newly developed country and looked at Russia as a possible ally.

Another reason was what the land had to offer.  All 570,641 square miles of Alaska provided multiple and seemingly abundant resources.  Minerals, fish, and furs, were the predominate supply that attracted individuals to the area, some still to this day. From that, job opportunities multiplied in obtaining those resources and trading in and out of Alaska. The US would also benefit in having a shorter distance to exchange goods with, such as Asia. The Russian-American Company greatly exercised the use of large coastal trading ports and merchandise warehouses; now the US could take advantage of these establishments and commerce.

On a very far, side note, there was an additional source that I came upon which talked about multiple land purchases around 1867. I found it interesting to look at other purchases around that of Alaska's.

Virgin Islands boundary

William Henry Seward, Secretary of State, underwent negotiations with Denmark; a treaty was signed and then ratified in Denmark. The US Senate compared the $7.5 million asked price of the Virgin Islands to the $7.2 million purchase of Alaska. Land size, 133 vs. 570,641 square miles, and economic opportunities in comparison to the asked price was the deciding factor to not purchase the Virgin Islands. Virgin Islands link. The US later purchased the islands in 1916 for $25 million...(Frommer's Virgin Islands)



Evaluation:
I found this week's module very informative and somewhat more relatable since I'm affected by Alaska's economic status. It was interesting to read about all the various contributions to the Alaskan economy. I personally, liked the charts that compared the economic attributions through out Alaskan history.

Since I grew up elsewhere and recently moved to Alaska, I compared and contrasted the types of economies. I could relate to the information in regards to the lumber industry because that was the staple mark of the area I grew up in. Comparing the end product of board feet with the numbers from other areas was helpful. In 1973, Southeastern Alaskan timber produced 700,000 million board feet versus Idaho's 1.65 billion board feet in 1973. I also really enjoyed all the information on how Juneau was created around mining. I look at the geography differently now, especially when trying to picture tunnels going under the channel that I look at through my window every day. It's amazing!

Statistics for the Idaho's timber can be found at Idaho's Forest Product Industry.

Blog Comments:
I agree with Wendy that sometimes it seems like all the information can easily get jumbled together and finding a way to organize the information can help, such as the 18th century timeline she had posted. It helped me gauge and distinguish the different events.

Christy brought up a great point of how the fur industry was a major contributing factor that led to a decline in the Alaska Native culture. It's unfortunate how one thing can lead to another, and another, and another..It was a great representation of cause and effect.

I liked Lane's section where he very broke down the Creole class. In addition, the image of Spanish named areas and points of contact along the Alaskan coast helped recap their influence in Alaska.