Alaskans have long been aware that oil production would not always pay the bills. Nearly every political text from the 80s and 90s includes some reference to a “long-term fiscal plan” required to offset the eventual decline in oil revenues. Record high oil prices masked the problem from 2006 to 2014. But, when oil prices[…]
In my last post, I laid out a strategy for turning Alaska blue. It’s only fair for me to construct a strategy for the other side of the political spectrum. The obvious answer is to do the opposite. But there are some points worth discussing. Using the same stereotypes and implications we discussed before, here[…]
For decades, political pundits have reliably put Alaska’s three electoral votes in the Republican count well before our polls even open. Yet, Alaska has elected several Democratic candidates over the years. The Democratic Party has controlled (with some help) at least one chamber of the state legislature for the last decade. We’ve elected a few[…]
Whenever I travel to the Lower 48, I usually get asked this question: “Do you really get paid just for living in Alaska?” My answer typically sounds like an economist trying to answer a politician’s question. There’s a lot to unpack for me to give you a full answer, but the bottom line is “kinda.”[…]
If you happen across some information about Alaska’s current financial situation, you probably get the impression that we are in dire straights. When oil prices crashed 77% in late 2014, the State’s oil revenues collapsed – leaving a gaping hole in the budget. By all accounts, we’ve been deficit spending ever since. But that is[…]
March was a crazy month. It’s almost unbelievable how quickly the world changed in response to the COVID-19 pandemic. Here are some quick highlights about how Alaska’s finances and economy were impacted by the pandemic. The Stock Market Collapsed March began with the Dow at 26,703. By the end of the month, it was down[…]
At this point, you’ve probably heard more about the COVID-19 than you can stand. I feel you. And I don’t want to pile on to the discussion about the disease itself. But, the measures to protect public health will have economic consequences. While doing a full analysis of that economic damage is more work than[…]
Around the globe, there are two basic systems governing the ownership of oil. In the first, resources are owned and controlled by the government. In the second, personal property rights extend all the way down to the core. The difference between the treatment of subsurface mineral ownership has far reaching implications. And, Alaska finds itself[…]
The Department of Revenue puts out a forecast of state revenues each December, which serves as a companion to the budget. The latest numbers are a few months old now, and an update should be released next month. However, the Spring update usually focuses more on adjusting the budget year than the long-term outlook. The[…]
Many Alaskans have probably heard something about the oil tax initiative called the “Fair Share Act.” You may have been asked to sign a petition while shopping, or you may have read something about it in one of the media outlets. You are likely to see it on the ballot when you vote this November.[…]