Oil, gas drive Valley economic engine

To the editor:

Neal Fried, our favorite bow-tie wearing state of Alaska economist, gave a presentation May 20 in Wasilla about where the residents of the Valley work, how many find work in the Valley, and the job categories of their jobs. According to Fried, the source of government revenue in Alaska comes primarily from the energy market of oil and gas, mining lease sales, and royalties. Other income sources are the fishing and tourism industries, and military spending. Native corporations invest in developing their businesses, shareholder workforce, and in natural resources on their lands. Without these primary sources of revenue, far fewer people would live in Alaska or the Valley to support retail, healthcare, and leisure and hospitality businesses.

We don’t live in an agrarian society anymore with an economy based on bartering potatoes for milk like the Palmer Colonists did. Without natural resource development in general and oil primarily, Farmers’ Markets would sustain the economy for only those people with land and plow animals after everyone else has moved away. But, the government isn’t going to support another agricultural colony here again.

The Valley is sometimes referred to as a bedroom community of Anchorage and many people would like to keep it that way. Land and housing are less expensive here making it attractive for young families. Five new schools are being built this year to accommodate an increase of new students. University of Alaska Anchorage’s Institute of Social and Economic Research conducted a study paid for by Outside foundations suggesting the borough should make land more expensive to curtail the influx of people and thereby reduce the need to increase funding for schools and roads.

The sustainability of the Mat-Su Borough economy starts with keeping land affordable and by letting the market dictate its price, not by artificially inflating its price to keep people out. Residents need to understand the source of our current economy — natural resource development, especially oil and gas. We also need to see the Anchorage/Mat-Su economy as a regional economy instead of fractured into us and them. If you think oil production and other natural resource development projects are not the engine of the Valley’s economy, start hitching up your horses and say goodbye to your friends.

Crystal Nygard

Wasilla