The Economy

Arizona's economy was long based on mining, stock raising, and some dry farming. Just before World War I, the rivers began to be harnessed for irrigation, making large-scale commercial farming possible. With later damming came large amounts of hydroelectric power and the development of manufacturing.

During World War II, the military air-craft industry built large plants in the state. With the space age came large military test facilities and many defense contracts. Since the late 1950's manufacturing has been the principal source of income, replacing minerals. Tourism, which is also of major importance, has developed rapidly.

The federal government owns nearly 44 per cent of the land. More than 25 per cent of Arizona's land, including some federal land, is in Indian reservations. The federal government plays a key role in the state's economy, chiefly through the development of water resources. The most extensive project is the Central Arizona Project (CAP), which carries Colorado River water from Lake Havasu to Phoenix and Tucson.

The spectacular growth of manufacturing dates from the 1940's. Manufacturing income increased almost fivefold between 1950 and 1960 and continues to increase.

In addition to defense industries, many nonmilitary plants have moved to Arizona. They are attracted by the warm climate and favorable taxation.

Leading manufacturing industries produce computer and electronic equipment, aircraft and missile parts, chemicals, and processed food. Most of the large industrial plants are in the Phoenix and Tucson metropolitan areas.

Since the days of the early settlers, metals have been abundantly produced. By far the chief metal is copper. More than half of the United States' annual production comes from Arizona. Most of the large copper mines are in the southeastern quarter of the state. Other metals produced in Arizona include gold, silver, and molybdenum. Molybdenum, sand and gravel, and gold follow copper in value of production.

Few crops can be grown in Arizona without the aid of irrigation. Many streams provide water, but only three are of major importance—the Colorado, Gila, and Salt. In some areas underground supplies provide all or part of the irrigation water.

Total area in crops is small, amounting to less than 5 per cent of the state. Yields, however, are extremely high. Among the chief crops are cotton, nuts, wheat, and barley; vegetables, notably lettuce; and fruits, especially citrus fruits. Arizona is one of the leading states in the production of fresh market vegetables.

Grazing lands cover more than half of the state. Many, however, are of poor quality because of the lack of rain. Beef cattle are grazed on the open range; sheep are pastured on the drier lands.

Several Interstate highways serve the state and link Phoenix, Flagstaff, and Tucson. Most of the railway lines have east-west routes. Phoenix and Tucson have the largest airports.