Personal income outpaces inflation: Anchorage versus U.S.: Alaska trends, an outline of significant statewide statistics, is provided by the University of Alaska Center for Economic Development.

• Author: Cox, William
• Position: Alaska Trends

Since the United States was taken off the gold standard and changed to a full fiat currency in 1971, inflation has become a significant concern among its citizens. The effects of inflation reduce the value of currency over time and therefore increase the price of goods. As a result of this phenomenon, a dollar received today has more value than a dollar received tomorrow. This continual devaluation of currency undermines the savings of the citizenry; it requires the earning of interest or appreciation of principal to maintain the future equivalent value of current savings (preserving the individual's purchasing power in the future).

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The chart shows the cumulative increase in personal income and inflation (as measured by the consumer price index) for Anchorage, Alaska, and the U.S. since calendar year 2000. While the inflation figures for Anchorage and the U.S. are very similar, with Anchorage experiencing 0.61 percent higher cumulative inflation, the personal income of Anchorage and the U.S. show a substantial divergence. Anchorage's cumulative increase in personal income is approximately 17.15 percent greater than the overall United States. This chart illustrates that when taking inflation into consideration, the personal income for those individuals in Anchorage would have increased 43.48 percent since calendar year 2000 in comparison to 26.95 percent for the United States. The additional 16.54 percent increase in purchasing power in Anchorage over the United States suggests the relative prosperity of Anchorage residents has increased in relation to the overall United States.

Source: Personal Income: http://www.bea.gov/ (Personal Income), http://www.bls.gov/ (Consumer Price Index)

ALASKA TRENDS Indicator Units GENERAL Personal Income--Alaska US$ Personal Income--United States US$ Consumer Prices--Anchorage 1982-1984 = 100 Consumer Prices--United States 1982-1984 = 100 Bankruptcies Alaska Total Number Filed Anchorage Total Number Filed Fairbanks Total Number Filed EMPLOYMENT Alaska Thousands Anchorage & Mat-Su Thousands Fairbanks Thousands Southeast Thousands Gulf Coast Thousands Sectoral Distribution--Alaska Total Nonfarm Thousands Goods Producing Thousands Services Providing Thousands Mining and Logging Thousands Mining Thousands Oil & Gas Thousands Construction Thousands Manufacturing Thousands Seafood Processing Thousands Trade/Transportation/Utilities Thousands Wholesale Trade Thousands Retail Trade Thousands Food & Beverage Stores Thousands General Merchandise Stores Thousands Trans/Warehouse/Utilities Thousands Air Transportation Thousands Truck Transportation Thousands Information Thousands Telecommunications Thousands Financial Activities Thousands Professional & Business Svcs Thousands Educational & Health Services Thousands Health Care Thousands Leisure & Hospitality Thousands Accommodation Thousands Food Svcs & Drinking...