Key Facts
- Per Capita Real GDP
- $44,807 Rank: 7/50 (2007)
- Population
- 686,293 Rank: 47/50 (2008)
- Per Capita Personal Income
- $37,271 Rank: 16/50 (2006)
- Unemployment Rate
- 6.50% Rank: 49/50 (2008)
- Business Tax Climate Index
- Rank: 4/50 (2008)
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Alaska: Introduction
Alaska was purchased from Russia for $7,200,000 on October 18, 1867, at a per-acre cost of roughly two cents. Many people initially referred to the purchase as “Seward’s Folly” in reference to Secretary of State William Seward who arranged the deal. The territory was largely unpopulated and unexplored at the time of purchase. This changed in 1898 when gold was found and the ensuing influx of more than 30,000 people nearly doubled the population of the state. Alaska became the 49th and largest state admitted to the Union on January 3, 1957. The 1968 discovery of the Prudhoe Bay oil and gas reservoir (the largest oil field in North America) turned energy into Alaska’s largest industry. Today Alaska produces about 20 percent of U.S. oil supply.
In addition to oil, Alaska's largest industries are tourism and fishing. Over one million tourists flock to the state every year, bringing in $1.5 billion to the state economy. Tourism is the second largest private sector employer with an industry payroll of around $250 million. Fishing is the third largest industry in Alaska and pulls in more than 5 billion pounds of seafood a year. Other large industries include timber, mining, and agriculture.
Two governmental policies unique to the state are taxation and the Alaskan Permanent Fund. Alaska is the only state that does not charge personal sales or income taxes. Government funding largely comes through petroleum revenues. In addition, the Alaskan Permanent Fund collects oil royalties and manages them through capital investment to provide residents with annual dividends ranging from $331.29 in 1984 to $1963.86 in 2000.
