100 years earlier, the territory was purchased from Russia for roughly $7 million dollars,

which today would only be about $120 million dollars. And yet, despite paying pennies per

acre, some economists today say that the US government has never actually seen profit

on the purchase. At the time, the deal was ridiculed in Congress and the press. Fast

forward to today; just how powerful is Alaska?

Well, Alaska is actually the second newest US state, and the largest by far. It is roughly

663,000 square miles, which means that it comprises more than a sixth of the entire

United States. Alone, Alaska would be the 18th largest country on earth. And yet, with

a population of less than 750,000, it is also the least densely populated state. Roughly

400,000 people live in the Anchorage Metropolitan Area, so most of the state is pretty barren.

However, Alaska’s population is unique in that about 15% is made up of Native Americans

or Alaskan Natives. Although both of these groups are indigenous to the US, they are

dealt with separately within some pieces of legislature. For example, although many Native

American tribes are able to collect taxes from business conducted on their tribal lands,

Alaskan Natives cannot do so. This is because the Alaska Native Claims Settlement Act of

1971 eliminated all but one Alaskan reservation, an island in the southeast.

In addition to a sparse population and a somewhat unfair shake for the Native peoples, Alaska

is also not very wealthy. Their state GDP is around 54 billion dollars, ranking them

45th among US states. For comparison, the smallest state in the US, Rhode Island, ranks

two spaces higher. And yet, despite such a relatively low total yield, Alaska has the

fifth highest number of millionaires per capita in the US. Why? Concentrated oil wealth.

Oil and gas make up nearly all of the state’s revenue, with seafood and tourism very distant

secondary sources. One of the largest oil fields in North America is located in Alaska,

and the petroleum industry accounts for a third of Alaskan employment. Alaska also has

one of the highest costs of living in the country due to difficulties transporting goods,

particularly in rural regions.

So, just how powerful is Alaska? Well, with a low density population, singular oil economy,

high wage inequality, and high cost of living, unfortunately Alaska’s gargantuan size is

a bit deceiving as to it’s relatively powerless state.

New York is one of the most diverse and populous states in the U.S. Learn about its cultural

and economic stronghold in this video Thanks for watching! Don’t forget to like and subscribe

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