Episode Overview

Theme:
Host Heather Cox Richardson explores the echoes between early 19th-century U.S. infrastructure projects—specifically the Erie Canal—and present-day renewable energy growth. By drawing on economist Paul Krugman’s latest insights, Richardson reveals how government support has historically underpinned transformative economic shifts, from internal improvements to clean energy.

Key Discussion Points & Insights

Parallels between Renewable Energy and the Erie Canal

• Paul Krugman's Argument on Renewables (00:07)

  • Krugman highlights "the virtuous circle of falling costs and increasing production" in renewables, thanks to targeted subsidies.
  • Current expansion makes past skepticism (e.g., Cheney’s 2001 warning about renewables’ insignificance) "funny if the Trump administration weren’t echoing them."
  • By 2024, solar and wind generate 15% of world electricity, accounting for 63% of growth since 2019.
  • Even if U.S. policy regresses, "solar and wind are unstoppable," and geopolitical power may shift towards leaders like China.

• Historical Precedent: The Erie Canal

  • Government investment and infrastructure have long been engines of economic growth (Alexander Hamilton’s vision).
  • In the fledgling republic, leaders debated and ultimately supported ambitious internal improvements—infrastructure that connected regions and spurred commerce.

Building the Erie Canal: Vision, Obstacles, and Impact

• George Washington’s Canal Ambitions (02:00)

  • Washington’s post-war vision included uniting inland waterways for trade.
  • Congressional limitations under the Articles of Confederation hindered federal action, prompting state-led initiatives.

• From State Sovereignty to Federal Action (02:45)

  • Cross-state cooperation (Maryland and Virginia) led to the Constitutional Convention (03:10).
  • The new Constitution empowered broader projects, but federal appropriations for canals still faced presidential opposition (James Madison—04:00).

• New York Acts Alone—The Erie Canal (04:30)

  • With federal funding blocked, New York state, under Governor DeWitt Clinton, financed and constructed the 363-mile Erie Canal.
  • The canal became a de facto “first engineering school,” whose alumni drove further U.S. infrastructure development.

• Economic and Social Transformation (05:00)

  • Dramatic drops in shipping costs: Buffalo to NYC fell from 19 to under 3 cents per ton-mile—eventually less than a penny (05:30).
  • Travel times shrank, connecting cities and fostering new towns: "Syracuse, Rochester, Lockport..."
  • The canal’s success welded the Great Lakes region to the U.S., facilitating westward movement and spreading New England customs and economies.

• Symbolic Celebration (06:20)

  • On October 26, 1825, Governor Clinton poured Lake Erie water into the Atlantic, ushering in a new economic era—exactly two centuries before Krugman’s newsletter, underscoring the cyclical nature of history.

Notable Quotes & Memorable Moments

• On Renewable Energy’s Momentum:

  “Solar and wind are unstoppable. They produced 15% of the world’s electricity in 2024 and account for 63% of the growth in electricity production since 2019.”
  —Heather Cox Richardson [summarizing Krugman] (01:40)

• On the Erie Canal’s Builders:

  “Untrained engineers figured out how to cut through forest, swamps and wilderness to carve a 363-mile path through the heart of New York… 83 locks to move barges and vessels… The project became the nation's first engineering school…”
  —Heather Cox Richardson (04:50)

• On the Canal's Economic Impact:

  “Before the canal, shipping a ton of goods from Buffalo to New York City cost more than 19 cents a mile. Once a trader could send goods by the canal, the price dropped to less than 3 cents a mile. By 1860, the cost had dropped to less than a penny.”
  —Heather Cox Richardson (05:30)

• On History Repeating:

  “The festivities began on October 26, 1825, exactly 200 years before economist Krugman wrote about the importance of government support for renewable energy, demonstrating that the more things change, the more they stay the same.”
  —Heather Cox Richardson (06:50)

Important Segments & Timestamps

• 00:07 — Opening, Krugman’s newsletter, and renewables
• 02:00 — Early American river trade & Washington's vision
• 03:10 — Maryland–Virginia conference leads to Constitutional Convention
• 04:00 — Push for federal funding; Madison’s veto; New York acts alone
• 04:50 — Erie Canal construction: scope, training, challenges
• 05:30 — Economic revolution: shipping/travel costs plummet
• 06:20 — 1825 celebration and the canal’s symbolic meaning
• 06:50 — Reflection: linking past infrastructure support to present renewables

Summary

Heather Cox Richardson uses Paul Krugman's observations on the unstoppable growth of renewable energy as a lens to revisit the Erie Canal’s transformative effect two centuries prior. She draws instructive parallels: both required government backing in the face of skepticism, created self-sustaining momentum, and ultimately reshaped the nation’s economic and geographic landscape. The episode emphasizes how history’s cycles—government investment fueling innovation, opposition and eventual triumph—illuminate the paths forward for today’s energetic transitions.