Posted on 10/16/2005 6:19:32 PM PDT by akdonn
For many years now national economic events have had little effect on the Alaska economy. Things have just kept clipping along at an even pace. But current events may change that. The combined effects of hurricanes Katrina and Rita, coupled with the continued drain on the federal budget from the Iraq war, may produce considerable weeping and gnashing of teeth in the 49th state on a scale not seen since the oil price crash of 1986.
Just for starters, federal funding for the Knik Arm bridge in Anchorage and for the Gravina Island bridge in Ketchikan, a total of some $450 million, might be delayed or cut altogether if Republican fiscal hawks in Congress win the day. And they might, despite the best efforts of Rep. Don Young, R-Alaska. The fiscal hawks argue that the money would be better spent in Louisiana, Texas and Mississippi rather than in Alaska. That has a ring of common sense to it that may be difficult for even Young to ignore, despite his chairing of the House Committee on Transportation and Infrastructure.
Katrina, Rita and Iraq mean growing federal deficits brought on by increased federal borrowing. That means higher interest rates because the Federal Reserve Board shows no willingness to accommodate these higher deficits. Right now the yield curve is all but flat, meaning that long-term rates are unusually close to short-term rates. Because long-term rates typically carry a risk premium, the normal relationship is for long-term rates to be somewhat higher than short rates. If the normal relationship reasserts itself, the interest rate shock in Alaska could be severe.
(Excerpt) Read more at adn.com ...
It strikes me that Lisa Murkowski has been a disappointment, and possibly has cost her state as a result. Also, the administration has been very slow to push the Alaskan part of the Energy Bill.
Maybe if Alaska quit paying their citizens their yearly bonus the state could afford some of those things they think they need so badly. Does Alaska have a property tax? Income tax? Why should the federal government build their bridges?
More drilling for oil in ANWR and other areas in Alaska might be one way to give the state a shot in the economic arm.
Just a thought.
"More drilling for oil in ANWR and other areas in Alaska might be one way to give the state a shot in the economic arm."
Great idea! Also, we are negotiating for development of gas reserves that the oil industry has been sitting on. I wouldn't be surprised if gas replaced gasoline as a primary source of energy for motorized transportation...
fortunately for the people of alaska that $ actually IS in a 'lock box'. untouchable, and it has more to do with stock prices than oil (although it may be heavily weighted by oil stocks, i don't know).
but i agree, they should be able to (find a way to) pay their own way for many things if they're sitting there giving citizens cash.
"It strikes me that Lisa Murkowski has been a disappointment, and possibly has cost her state as a result."
That's an interesting perspective, that I don't happen to share...
we are negotiating for development of gas reserves that the oil industry has been sitting on.
----
I have seen that reported.
Some folks need to get off their butts and out of the way and put America and the economic engine first or else.
That doesn't mean the environment will get raped in so doing.
Soon we will all run out of gas while we're sitting on top of bountiful reserves.
"Maybe if Alaska quit paying their citizens their yearly bonus the state could afford some of those things they think they need so badly."
Here we go again with another round of misinformed criticism of Alaska. If the Permanent Fund didn't exist, government would certainly have already spent every penny and we would still be needing the federal government to help with infrastructure since 98 percent of all land in Alaska is owned by the federal government. Fortunately, under the statehood act the state picked land that happened to have oil under it. Now, instead of being a poor state run by oil companies and the federal government, we are a rich state that has established a unique way to share the wealth with citizens who meet the required criteria.
Before you start making ignorant blanket statement about things you don't have a clue about perhaps you should do a little research...
Drilling in ANWR will be great for Alaska economy. Hopefully the drilling will start next year.
Good. I've heard complaints that she isn't as sound as her father, but if she grows into the job, that's a plus for us all.
"Good. I've heard complaints that she isn't as sound as her father, but if she grows into the job, that's a plus for us all."
To tell the truth, I've never thought her father was so hot. As governor he is having lots of problems, too.
Here's a link describing his governorship:
http://www.adn.com/news/alaska/story/7094832p-7001278c.html
I've always thought Lisa was a bright and capable person. I watched her in the Legislature when I lived in Juneau...
I lived in Alaska for over 26 years. Thank God I don't anymore. It is one of the most socialistic states of the fifty (don't believe me? - READ your own constitution, Alaskans - you're at the mercy of LAWYERS) and it does not EARN what it gets from the Federal government.
Ted Stevens, although a staunch conservative, is also a thoroughly corrupt conservative. Don Young is several bricks shy of a full load. Lisa Murkowski wouldn't be anybody without her Daddy's helping hand. She has done NOTHING to deserve a place in the U.S. Senate except to be the governor's daughter. Talk about cronyism!!!
The state government is completely out of control the way they waste money - and its a REPUBLICAN MAJORITY!!! Until the citizens of Alaska wake up and demand that their elected state reps run a fiscally responsible government they are going to be subject to the boom and bust cycles that have been a way of life up there for far too long.
First thing that needs to be done is to get the legislative and administrative branches out of that inaccessible cesspool called Juneau and relocate it closer to the population centers of Southcentral AK so the people can have some (GRRR!) face time with their elected representatives while they are in legislative session. As long as those morons can remain isolated in Juneau, they will continue to live in their fantasy world and spend money like a bunch of drunks on holiday. Its really convenient here in Idaho where I can actually DRIVE to the state capitol and harangue my reps when I feel like it - and they KNOW it too. That keeps them under control.
Then it would be nice to see the Alaska congressional delegation get over their addiction to Federal money. Alaska is a strategically important state but they don't need to build any of that crap that has been proposed. What they need is a rail connection through Canada to the Lower 48 and a natural gas pipeline to follow that railroad right of way. THAT would benefit Alaska, Canada, AND the CONUS. Since that would likely NOT directly benefit King Ted or the Native corporations (one and the same), it won't happen.
Alaskans, erwacht!
My perspective is different probably. What you want is good representation for Alaska, and what I want is a reliable vote in the senate.
But these can be interlinked, because Murkowski pere was famous for bringing home a lot of pork to benefit the Alaskan economy.
Alaska is like the welfare queen who uses food stamps in the grocery store then gets in her Lexus to drive away.
If they can afford to give each citizen a check each year, they can afford to pay for their own projects, instead of mooching off the rest of us.
Q: Where would the bridge be located, and who would benefit from the bridge (oil, government, citizens)?
Do you really believe that Alaska is not run by the oil companies and the Federal government? I beg to differ.
Most likely the local government apparatchiks who own land near where the bridge will go to and who also happen to be real estate developers. That's the way it works up there. They also contribute heavily to Don Young and Ted Stevens.
bumpitty, bump, bump...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.