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Minnesota History

Industry Overview | Economy/Cost of Living
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Originally home to several Native American Indian tribes, including the Ojibwa and Dakota, Minnesota remained unknown to Europeans until the 17th century when French fur traders ventured into the upper Mississippi River and Western Lake Superior. In 1673, the first brief account of the Minnesota territory was published in France by Father Louis Hennepin, in Description de la Louisiane.

In 1763, Spain controlled of Minnesota west of the Mississippi as part of the Louisiana Territory. Twenty years later, in 1783, the newly formed United States controlled the eastern half. The United States finally reunited Minnesota in 1803, with the Louisiana Purchase under President Thomas Jefferson. The United States erected their first federal building, requiring the purchase of $2,000 worth of land from the Dakota Indians, with the construction of Fort St. Anthony (renamed Fort Snelling) in 1819.

The next several decades were crucial to establishing the exact boundaries of present-day Minnesota and acquiring the land necessary for settlement. By 1850, through several land-cession treaties with local tribes, this goal had been largely accomplished. Cities such as St. Paul and St. Anthony were formed, as hundreds of thousands of European immigrants began to settle in the new territory. Between 1853 and 1857, the population more than tripled from 40,000 to 150,000. In 1857, Minnesota ratified its first state constitution and on May 11, 1858, became the 32nd state of the U.S.

Great Minnesota FarmsBy the late 19th century, lumber, iron ore, and wheat were major Minnesota industries, with almost 70% of tillable land devoted to wheat, until the devastating Grasshopper Plague forced farmers to diversify to other crops and dairy farming. The lumber industry had peaked by the 20th century, but Minnesota remained the leading producer of iron ore in the U.S. well into the 20th century. Agriculture remains a dominant industry today.

By the 20th century, Minnesota was as modern as most U.S. states, in terms of educational and medical institutions, as well as transportation. Both the University of Minnesota and Minnesota State University had been established by 1868. In 1883, the Mayo Clinic was founded, providing advanced and specialty care to urban Minnesota. Transportation had always been available via the Mississippi River and in 1862, overland travel was modernized by the completion of the first railroad, linking St. Paul and Minneapolis. Electric streetcars began to enhance urban areas in the 1890s.

The 20th century heralded diversification and specialization, both keystones of the modern world. While agriculture and mining remained dominant and important industries, Minnesota slowly became a center for government, transportation equipment, machinery and medical technology, as well as numerous other industries. It is this expanded economic base which, in the last two decades, has led to the successful development and growth of a biotechnology industry. From genetically improved crops to automobile assembly to medical device manufacturing--the economy today remains technology-centered and technology-focused.

Related Resources

  • Minnesota BioHistory
  • Minnesota Historical Society
  • Ancestral Trails: Information about the native peoples of Minnesota



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