The largest state in the nation, Alaska's southern coastal region contains most of the state's population. Over 65% of the state is rife with national forests, parks, wildlife refugees and over 3 million lakes.
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When William H. Seward purchased Alaska from Russia in 1867, he received a great deal of criticism due to the belief that Alaska was useless, frozen land. The sale averaged out to be less than two cents per acre. The state literally turned out to be a gold mine, when in 1880, the Klondike Gold Rush was on. The hordes of settlers create havoc and created a need for law and order. Congress enacted criminal and civil laws and passed a homestead act in 1903. It was made a territory in 1912 and didn’t achieve statehood until 1959.
World War I, coupled by dwindling gold production caused a big lull in the economy. Renewed interest in the area was generated when the Japanese threaten to invade the U.S. through Alaska during World War II. In 1942, with the Japanese occupying the Aleutian Island, the military constructed the Alaskan Highway in less than twelve months.
In 1968, "black gold" was discovered and the Alaskan Pipeline was constructed from Prudhoe Bay to Valdez. In 1980, President Carter signed the Alaska National Interest Lands Conservation Act, designating 104 million acres as new national parks, preserves and recreation areas. In 1989, the super tanker Exxon Valdez spilled more than 11 million gallons of crude oil into Prince William Sound renewing debate of preservation of the natural beauty and resources of the Alaskan wilderness.
Overwhelmingly, the single most important economic factor to the state is the Alaskan Pipeline. When construction began, thousands of people headed north to pursue their dreams. After the construction was completed, more than 20,000 jobs ended, however the majority of workers found new jobs in industries made possible by the building of the pipeline.
Although oil is the Cinderella of the state’s economy, tourism now leads fishing and timber as the second leading money maker. Although weather is a deterrent, the state has developed over 1,000,000 acres of fertile land that will be used to farm grains, hardy vegetables and berries. Since Alaska has more 35,000 square miles of grazing land it is pursuing ways of increasing cattle and sheep raising.
Alaska has no statewide sales tax. Cities and boroughs may levy a sales tax of up to 6 percent, plus special taxes on goods and services.
With millions of acres of national parklands and wildlife refuges, tourism is a major business in the state. Most of these regions are only accessible by plane or boat and there are numerous tour operators specializing in single and multi-day tours and excursions. Hunting and sport fishing bring in countless hunters and fisherman. A very short summer season brings in tourists to swim, backpack, camp and pursue mountain climbing. Winter brings out the skiers and those interested in skijoring, skiing behind dog sled teams.
