Module 5- American Period:Alaska's Economy

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

Alaska's economy during the American period developed largely from a desire to profit from and exploit the natural resources of the area.  Whaling, fishing, seal hunting, mining, oil drilling, logging and have all been part of the  Alaska economy at one time or another. Unfortunately it often entailed wiping out one resource, then moving on to the next. An example was the whaling industry which was decimated through over-harvesting, then the whalers moved on to hunting of walruses.

The gold rush in Alaska was a major part of the economy  not for finding gold, some would argue, but for what the gold miners brought with them and demanded once they settled in Alaska.  Because of the gold rush, Alaska's roads and towns were built and communication and legal services grew.  The gold rush, according to the web site Alaska's Gold "changed Alaska forever."


Farming and the timber industry have also played a roll in the Alaskan economy.  The long daylight hours in the summer cause vegetables to grow very large, reportedly nineteen pound carrots and one hundred pound cabbages.  Lumber is also a significant part of the economy. At first lumber was used in the fishing and mining industry, then later was sold overseas. More recently the government passed legislation to protect forests which limited the sale of lumber.

Today the oil and gas industry make up 85% of the Alaskan economy.  This industry is very dependent on worldwide prices and availability of oil. Alaska's economy is on very shaky ground because of these variables. The market changes often and sources of oil are not infinite.

http://northpacificseafoods.com/content/view/96/362/

Fishing in Alaska is also very important to Alaska. It is one of the biggest sources of wild salmon in the world and according to the Alaska Department of Economic Development has the only designated "sustainable" salmon fishing industry.  

http://www.alaskadenalitours.com/

 Tourism and exploration/adventure is also a vital part of the Alaska economy.  Alaska is seen as the last frontier with its low population and pristine untouched landscapes.



The military has had a strong presence in Alaska since the purchase from Russia.  Initially the military was sent to protect our interests.  Since then they, among other things, built the Alcan Highway and used Alaska for strategic bases during World War II.

Examine:  Why did the United States buy Alaska? 

The check used to purchase Alaska

The United States bought Alaska from Russia for 7.2 million dollars, about 2 cents per acre.  Former Secretary of State William Seward was instrumental in the sale. At first the sale was thought to be foolish and wasteful and was so named "Stewart's Foley", but later the value of Alaska's natural resources and strategic location became apparent.

The United States wanted to extend its borders throughout the North American continent. And with expansion in mind, they wanted to be closer to British Columbia. Also, according to American Heritage's Chapter 4-1: Americans Come to America, Americans came to Alaska to reap the benefits of all of the natural resources. They followed in the footsteps of the Russian settlers and hunted, trapped and fished.  They also mined and logged wherever it was feasible.  There were also political reasons for the purchase.  The United States wanted to keep up good relations with Russia who served as an ally against France and Mexico.  Russia needed the money and did not want to sell to it's enemy, Great Britain. 

 One other economic reason for the purchase according to American Heritage's Chapter 4-1 was the  proximity to the Asian markets. Russians initially opened the doors for Asian trade by selling furs to the Chinese.

 

Extend: What are economic issues in my area?

City of Dillingham

 Dillingham's main economy is fishing, commercial, subsistence, and sport.  Some residents depend on the summer's catch to support them throughout the year, others use fishing to supplement their income.  Fishing in Dillingham creates a need for housing, so there are numerous bed and breakfasts and apartment houses as well as two grocery stores, a post office, Department of Motor Vehicles and City Hall.  There are a few restaurants, most are open only during the summer.  Dillingham is the center for a number of smaller villages in Southwest Alaska. Many people are employed by the City, Fish and Game and the Native Corporation.

Nushagak River in Bristol Bay Watershed

A Canadian company has proposed the opening of the Pebble Mine near Lake Illiamna in the Bristol Bay watershed to extract copper and gold. This is some of the most pristine salmon and trout fishing areas in the world.   There has been a great outcry against it because of its impact on the environment and the fishing industry. There are pros and cons to the issue.  It would, of course, bring more revenue and jobs to the area.  Also a road would be built which would connect the area to Anchorage which would have enormous changes on Dillingham, both positive and negative. It would bring more people and development to the area, but food and housing prices might go down. The unknown affect on the environment is what is in question for most people, especially those who depend on fishing for their livelihood. The 1989 Exxon Valdez oil spill and its negative impact on the people and environment has not been forgotten by Alaskan residents. There is also a question of whether or not this mining would actually benefit Alaskans. The Pebble Mine is still in an exploratory stage, outcomes have not yet been determined.  The Pebble Mine Alaska web site proposes sustainable mining in which the mining company is aware of mining and its impact on the environment throughout the process.

Evaluation:
I liked that this module made me think about some of the industries  such as oil and mining which have really made Alaska a much richer state.  Although my inclination is to protect the environment above all else, I realize, from the module that this would be a "very different place" without these industries.  Maybe there is a way to blend the two so that Alaska has a thriving economy as well as a clean and protected environment.  
This is a challenging class for me to keep up with and it can be discouraging at times.  I am getting more comfortable with blogging and am actually enjoying it ! I appreciate feedback, it is nice to know what I need to work on, as well as what I might be doing right! 

 Blogs I have visited:

KSmith's blog is very visually appealing, I like the seamless incorporation of pictures which I am working on.  She also enjoyed The Russian American Reader. 
Marg talks about how most of the Russians exploited the natives and natural resources of Alaska, although there were some scientists and artists who studied and respected the area. 
Tina's blog is about the large impact of the Russians on Alaska.  She also mentioned the lack of videos and other sources of information which I too missed.