Being an Urban Alaskan #5 – Do you really get paid to live in AK?

money-1428594_1280You’ve found your way to post #5 of my series of articles on the Urban Alaskan, written for my non-Alaska friends, where I talk about how my day to day experience is exactly like yours, mostly, except for the moose and timezone. If you’d like to catch up, you can check here.

To answer the question in short, Yes. We get paid a Permanent Fund Dividend (PFD) each year. We don’t pay any sort of state taxes, however cities and boroughs are a bit different, each having a patchwork of sales and property taxes. Before I go on about this at all, I want to be clear, one thing the PFD is NOT is universal basic income. Regardless of what Mark Zuckerburg said about it, or anyone else. The PFD is the tip of an odd regulatory iceberg that is somehow both socialist and fascist. In this state, even in our little urban corners, land owners only own the surface. Everything below ground is available for sale to the highest bidder. This means that it’s totally possible for a company to drill for oil under your house without any sort of personal compensation. The PFD is our consolation prize for having the minerals sold out from beneath us. On one hand it’s a totally equitable system where everyone shares the wealth, on the other, it’s a system where big companies run everything and dole out a little cash to make it seem above board.

The amount of the PFD varies quite a bit. When I first wrote this blog it was fairly high (maybe 1500?). As I write this now in 2021, we’re not likely to get one, but if we do, it won’t exceed about $600/person. In general, the value of the PFD has a lot more to do with the stock market than oil these days. The state has MANY billions of dollars invested in various places. Alaskan residents are given equal shares of ½ the five year average net earnings of the PFD or something like that. Right now these payments are in jeopardy due to a massive fiscal crisis. I expect that will persist.

What’s interesting about the PFD isn’t the fact that we get money. I think it’s the PFD sales. At this point you might ask, “PFD sales? What the hell is this?” Put this picture in your mind: A twenty foot tall stack of flat-screen TV boxes. Back when I was in college, before flat-screens were in wide use, we had a couple of really good PFD years. I recall walking into Fred Meyer and seeing TVs stacked to the ceiling. This didn’t actually even cause me to stop and think at the time. I mean, hell, everyone was flush with a couple thousand bucks a person seems like it’d be as good a time as any to buy a TV. I didn’t think about it until I moved to Maryland and there was no PFD or PFD sales.

Some years ago (maybe 15?), when oil was astronomical AND the stock market was clipping along, we had a two-thousand dollar PFD PLUS Sarah Palin gave everyone another $1,000 ‘energy bonus’, which rang up to a solid $3,000/person across the state. There is a reason she’s well liked here. Overnight, my bank account went from being a mud-puddle in a desert to a Scrooge McDuck swimming-pool. That’s the year I put the addition on the house.

I can’t speak for rural residents, but for an urban Alaskan, the PFD has become a pretty routine part of life that, more often than not, gets put to some practical use with a bit of splurge. Each year, we apply and receive our money. Typically, we use it for mundane things, like fixing the car or paying off some debt.

There it is – we get a PFD. No, it’s not anything like what folks experience in the lower-48, but also recall that food and things (like lumber or cement) cost a lot more here, as does fuel (in spite of owning vast oil reserves), and to be honest, paychecks aren’t dramatically better here than elsewhere, in some cases rather considerably less than industry standard. While it sounds cool, it’s just helping us to fill in the cracks and help us forget that an oil company might very well just drill our water out from under us at any moment.

Next Up: Do you use American Money? (Misconceptions)

Being an urban Alaskan #4 – Yes, it’s bloody dangerous to live here, even in the city

IMG_2442[Updated August 2021] You’ve found your way to post #4 of my series of articles on the Urban Alaskan, written for my non-Alaska friends, where I talk about how my day to day experience is exactly like yours, mostly, except for the moose and timezone. If you want to catch up, you can see post #3 here.

August marks the anniversary of when my brother-in-law went missing, more than 20 years ago as I write this. It was a beautiful sunny day, and for Seward, AK, that’s a rare thing. Actually, the whole summer had been a nice. I think that was the same summer it hit 90 in downtown Seward and the pavement buckled, something not repeated until the summer of 2019. Stewart, my wife’s twin, decided to go to Bear Lake for a spin around on a jet-ski on his day off. I no longer recall if he was a deck-hand on a fishing boat or was doing guiding over in Bristol Bay at that point. Anyhow, somewhere in there things took a tragic turn. Nobody knows what actually happened. He had a couple of friends with him, but they were otherwise occupied or out of sight when the incident occurred. At this point it’s all rather irrelevant.

Alaskan Lakes are mostly very, exceptionally, cold. Typically, the temperature of an Alaskan lake isn’t a great deal higher than freezing. With water that cold, hypothermia happens so quickly you might only have a couple of minutes. Yes, you can survive for a surprising amount of time in some of these lakes, but as a rule, you’d better be wearing a life preserver. In the vast majority of circumstances, if you fall into the water, you’re not going to have the strength to swim to shore if you’re any distance in at all. There are exceptions to this, especially around Anchorage, but I can also tell you that swimming for me as a child meant wading into your knees and completely losing feeling for a few minutes. This also made my boy scout swimming test absolute hell because I was so terrified of the cold water, I couldn’t jump in for the swim, even though the water was cold but not deadly. At this point, folks from the lower-48 might conclude that I’m exaggerating and it doesn’t happen that fast, but it does. Falling into a lake without a life preserver, even for an excellent swimmer can be a death sentence. Add physical injury to that and your odds of survival are about as good as jumping from a very high place. Because of the icy water, everything sinks too. So, not only did he go missing, he stayed missing for days before they were able to find him at the bottom of that unforgiving lake.

I know these sorts of accidents happen everywhere. It’s the nature of being human – shit happens and sometimes we pay for it with our lives. However, nearly everyone who has lived up here for any significant amount of time knows someone who has died attempting to enjoy the outdoors (or at the very least has a 1-off). Sometimes it’s an accident that could’ve happened anywhere – jet ski accident or the like. Other times it’s a rare accident. For example, I knew a guy from high-school who died in an avalanche a few years after we graduated. Deadly bear maulings, even very close to Anchorage, aren’t unheard of. There’s also the classic story of the person who got stuck in the mud in Turnagain arm and drowned from fast moving tides. The real story comes from north of Anchorage involving a soldier and his friends. On top of that, there are plenty of stories with people going off on what we all trick ourselves into believing is an easy day-hike alone only to suffer an injury and subsequently die of exposure. In 2021 a woman went missing not far from Palmer after being charged by a bear. They searched two days and didn’t find her. In her case, she made her way to a main road and survived. However, this illustrates that even close to population, you can go missing badly enough that teams of searchers may never find you.

Now, I’ve said all of this but I don’t think the exotic ways people die up here is actually particularly unique. After all, nobody was ever eaten by a gator up here or taken up in a tornado. What is unique is the ultra-low population densities. So, when something does happen. It can take days or weeks before someone happens across you, even when they’re looking for you. What’s more, when this sort of thing happens, odds are that your extended family is very far away indeed, so pulling together in that family way is difficult to impossible. I think this is really what gives urban Alaskans the sense of remoteness that we probably don’t deserve. After all, if I can go have lunch at a Subway sandwich shop and in twenty minutes, ON FOOT, be so remote that even after years of searching nobody could find my mangled body at the bottom of that ravine, it can set up some pretty confusing dichotomies. On one hand, wilderness, on the other, city life. It’s weird and dangerous.

Next up: Do you really get paid to live in Alaska?