WW2 and the Cold War

Much of the military spending was on building bases and improving Alaska's infrastructure. Across the state, new airfields, ports, roads, railroads, and communication systems were built or significantly upgraded. The single largest project was the construction of the Alaska Highway to connect Alaska with the rest of the United States. Over 10,000 construction troops worked on building this 1,700-mile road. Infrastructure improvement created new opportunities for economic development and set the foundation for Alaska's modern economy.

The increased military presence also dramatically affected Alaska's population. In 1943, at the height of World War 2, there were 150,000 troops stationed in Alaska, double the civilian population. Many soldiers would stay after the war, along with thousands of people who came to Alaska for the jobs created by the military spending. The total population of Alaska tripled between 1940 and 1960, increasing from 72,000 to 230,000. Anchorage and Fairbanks, as the home to the most important military bases, grew the most. Anchorage's population ballooned from 3,000 in 1940 to 83,000 in 1960 as it became Alaska's population and economic center. Over this same period, the Fairbanks area grew from 4,000 to 43,000.

The economic boom from World War 2 and the Cold War happened because of Alaska's unique strategic location, at the center of crucial global air and sea routes. The importance of Alaska's location on the globe continues to be a major part of Alaska's economy today. Anchorage is the third busiest cargo airport in the world, and the U.S. military continues to have a large presence and brings a lot of money into the Alaskan economy.