{"id":650910,"date":"2024-11-26T07:52:00","date_gmt":"2024-11-26T12:52:00","guid":{"rendered":"https:\/\/erickimphotography.com\/blog\/?p=650910"},"modified":"2024-11-26T07:52:00","modified_gmt":"2024-11-26T12:52:00","slug":"purchase-history-of-alaska-annualized-rate-of-return-arr-and-the-concept-of-manifest-destiny","status":"publish","type":"post","link":"https:\/\/erickimphotography.com\/blog\/2024\/11\/26\/purchase-history-of-alaska-annualized-rate-of-return-arr-and-the-concept-of-manifest-destiny\/","title":{"rendered":"Purchase History of Alaska, Annualized Rate of Return (ARR), and the Concept of Manifest Destiny"},"content":{"rendered":"\n

1. Purchase History of Alaska<\/strong><\/p>\n\n\n\n

The Alaska Purchase (1867)<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Date of Purchase:<\/strong> March 30, 1867<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Parties Involved:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 United States:<\/strong> Represented by Secretary of State William H. Seward<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Russian Empire:<\/strong> Represented by Minister Eduard de Stoeckl<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Purchase Price:<\/strong> $7.2 million<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Equivalent to about 2 cents per acre<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Area Acquired:<\/strong> Approximately 586,412 square miles<\/strong> (about 375 million acres<\/strong>)<\/p>\n\n\n\n

Context and Significance<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Russian Motivation:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Financial difficulties and the costly burden of defending Alaska<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Concern over potential conflict with Britain, which could result in losing the territory without compensation<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 American Motivation:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Expansionist aspirations aligned with the doctrine of Manifest Destiny<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Interest in the natural resources and strategic advantages of the territory<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Public Reaction:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Initially met with skepticism; critics dubbed it \u00e2\u20ac\u0153Seward\u00e2\u20ac\u2122s Folly\u00e2\u20ac\u009d<\/strong> and \u00e2\u20ac\u0153Seward\u00e2\u20ac\u2122s Icebox\u00e2\u20ac\u009d<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Many Americans saw it as a wasteland with little to offer<\/p>\n\n\n\n

Outcome<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Resource Discovery:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Gold Rushes:<\/strong> Notably the Klondike Gold Rush<\/strong> in 1896<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Oil and Gas:<\/strong> Major discoveries contributing significantly to the U.S. energy supply<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Statehood:<\/strong> Alaska became the 49th state<\/strong> on January 3, 1959<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Strategic Importance:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Played a crucial role during World War II<\/strong> and the Cold War<\/strong> due to its proximity to Russia<\/p>\n\n\n\n

2. Estimating the Annualized Rate of Return (ARR) for Alaska<\/strong><\/p>\n\n\n\n

Step 1: Confirming the Purchase Price<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Initial Investment (1867):<\/strong> $7,200,000<\/strong><\/p>\n\n\n\n

Step 2: Estimating the Current Land Value of Alaska<\/strong><\/p>\n\n\n\n

Total Area Conversion:<\/strong><\/p>\n\n\n\n

Average Land Value per Acre:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Considering the vast undeveloped areas and lower population density, a conservative estimate is $1,000 per acre<\/strong><\/p>\n\n\n\n

Total Current Land Value:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Estimated Current Value:<\/strong> $375.3 billion<\/strong><\/p>\n\n\n\n

Step 3: Calculating the Annualized Rate of Return (ARR)<\/strong><\/p>\n\n\n\n

Variables:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Present Value (PV):<\/strong> $7,200,000<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Future Value (FV):<\/strong> $375,303,680,000<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Number of Years (n):<\/strong> 2024 – 1867 = 157 years<\/strong><\/p>\n\n\n\n

ARR Formula:<\/strong><\/p>\n\n\n\n

Calculations:<\/strong><\/p>\n\n\n\n

1. Compute the Growth Factor:<\/strong><\/p>\n\n\n\n

2. Calculate CAGR:<\/strong><\/p>\n\n\n\n

Step 4: Summary<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Initial Investment (1867):<\/strong> $7.2 million<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Estimated Current Value (2024):<\/strong> $375.3 billion<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Annualized Rate of Return:<\/strong> Approximately 7.17% over 157 years<\/strong><\/p>\n\n\n\n

3. The Concept of Manifest Destiny<\/strong><\/p>\n\n\n\n

Definition<\/strong><\/p>\n\n\n\n

Manifest Destiny<\/strong> was a 19th-century doctrine and belief that the expansion of the United States across the North American continent was both justified and inevitable, ordained by God to spread democracy and capitalism.<\/p>\n\n\n\n

Origins<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Term Coined:<\/strong> By journalist John L. O\u00e2\u20ac\u2122Sullivan<\/strong> in 1845<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Context:<\/strong> Used to advocate for the annexation of Texas<\/strong> and the Oregon Territory<\/strong><\/p>\n\n\n\n

Core Principles<\/strong><\/p>\n\n\n\n

1. Divine Providence:<\/strong> Belief that the U.S. had a God-given mission to expand westward.<\/p>\n\n\n\n

2. Destined Expansion:<\/strong> The inevitability of U.S. territorial growth.<\/p>\n\n\n\n

3. Spreading Ideals:<\/strong> Duty to spread democracy, freedom, and civilization.<\/p>\n\n\n\n

Historical Context and Expansion<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Louisiana Purchase (1803):<\/strong> Doubled the nation\u00e2\u20ac\u2122s size.<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Annexation of Texas (1845):<\/strong> Led to the Mexican-American War<\/strong>.<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Oregon Trail (1840s):<\/strong> Migration route for settlers moving west.<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Mexican Cession (1848):<\/strong> Acquisition of vast territories after the war with Mexico.<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Gadsden Purchase (1853):<\/strong> Acquired land for a southern transcontinental railroad.<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Alaska Purchase (1867):<\/strong> Extended U.S. territory into the Arctic.<\/p>\n\n\n\n

Impact on U.S. Policy and Society<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Territorial Growth:<\/strong> The U.S. expanded from 13 colonies to a nation spanning coast to coast.<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Economic Development:<\/strong> Access to new resources, agricultural lands, and trade routes.<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Conflict with Indigenous Peoples:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Displacement:<\/strong> Forced removal of Native American tribes (e.g., Trail of Tears<\/strong>)<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Wars and Treaties:<\/strong> Numerous conflicts resulting in loss of native lands and culture<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Slavery Expansion Debate:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 New territories intensified conflicts over slavery, contributing to the Civil War.<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Foreign Relations:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Justified interventions and conflicts with neighboring countries.<\/p>\n\n\n\n

Criticism and Controversies<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Ethnocentrism and Racism:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Belief in Anglo-American superiority marginalized Native Americans and other groups.<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Imperialism:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Viewed by some as a pretext for aggressive expansion and conquest.<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Moral and Ethical Concerns:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 The ideology justified the displacement and suffering of indigenous populations.<\/p>\n\n\n\n

Legacy<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Cultural Influence:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Shaped American identity and notions of exceptionalism.<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Modern Reflections:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Ongoing debates about the consequences of Manifest Destiny on native peoples and international relations.<\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Historical Significance:<\/strong><\/p>\n\n\n\n

\u00e2\u20ac\u00a2 Set the stage for the United States to become a continental power and later a global influence.<\/p>\n\n\n\n

Conclusion<\/strong><\/p>\n\n\n\n

The acquisition of Alaska, initially mocked as \u00e2\u20ac\u0153Seward\u00e2\u20ac\u2122s Folly,\u00e2\u20ac\u009d<\/strong> has proven to be a strategic and economically beneficial decision for the United States, with an estimated annualized return of 7.17%<\/strong> over 157 years. This purchase, along with others during the 19th century, was influenced by the ideology of Manifest Destiny<\/strong>, which played a pivotal role in shaping the nation\u00e2\u20ac\u2122s expansionist policies. While it facilitated the growth and emergence of the U.S. as a significant power, it also led to profound and often devastating impacts on indigenous populations and set the stage for future ethical and political debates.<\/p>\n\n\n\n

Note:<\/strong> This estimation is a simplified analysis intended to provide a general understanding of the financial growth associated with the Alaska Purchase and the concept of Manifest Destiny. Actual historical and economic complexities are more nuanced and involve a range of factors not fully captured here.<\/p>\n","protected":false},"excerpt":{"rendered":"

1. Purchase History of Alaska The Alaska Purchase (1867) \u00e2\u20ac\u00a2 Date of Purchase: March 30, 1867 \u00e2\u20ac\u00a2 Parties Involved: \u00e2\u20ac\u00a2 United States: Represented by Secretary of State William H. Seward \u00e2\u20ac\u00a2 Russian Empire: Represented by Minister Eduard de Stoeckl \u00e2\u20ac\u00a2 Purchase Price: $7.2 million \u00e2\u20ac\u00a2 Equivalent to about 2 cents per acre \u00e2\u20ac\u00a2 Area Acquired: […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[17],"tags":[],"class_list":["post-650910","post","type-post","status-publish","format-standard","hentry","category-posts"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/posts\/650910","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/comments?post=650910"}],"version-history":[{"count":1,"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/posts\/650910\/revisions"}],"predecessor-version":[{"id":650911,"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/posts\/650910\/revisions\/650911"}],"wp:attachment":[{"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/media?parent=650910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/categories?post=650910"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/tags?post=650910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}