Summary of "Before La La Land, there was Fort Lee, New Jersey"

The Indicator from Planet Money released its episode titled "Before La La Land, there was Fort Lee, New Jersey" on July 14, 2025. Hosted by Darian Woods and Alexi Horowitz Ghazi, the episode delves into the origins of American filmmaking, exploring how the industry transitioned from Fort Lee, New Jersey, to the iconic Hollywood of today. This summary captures the key discussions, insights, and conclusions presented in the episode, enriched with notable quotes and structured into clear sections for ease of understanding.

1. Introduction to Fort Lee as the Birthplace of American Filmmaking

The episode begins with Darian Woods and Alexi Horowitz Ghazi setting the scene in Fort Lee, New Jersey—a place that once stood as the epicenter of the American film industry before Hollywood rose to prominence.

Darian Woods introduces the topic:
"We're climbing up a steep path in Fort Lee, New Jersey to tell the origin story of American filmmaking." [00:19]

The hosts illustrate the geographical advantage of Fort Lee, highlighting its proximity to Broadway and Thomas Edison's innovations, which provided a competitive edge in the burgeoning film industry.

2. The Early Foundations: Broadway and Thomas Edison

The duo explains that the Northeast's success in early filmmaking was largely due to two pivotal elements: the theatrical expertise from Broadway and the technological advancements spearheaded by Thomas Edison.

Richard Kozarski, a historian, elaborates on Edison's contribution:
"Edison is doing two things. First of all, he's making the hardware, but now he's in the entertainment business. So he has to keep supplying films for this machine because nobody else has camera equipment." [02:05]

Edison's invention of the Kinetoscope and his establishment of a film production studio in West Orange, New Jersey, laid the groundwork for the movie industry's initial growth in the region.

3. Fort Lee's Rise as a Filmmaking Hub

Fort Lee's advantageous location, nestled between Edison's innovation hub and Broadway, fostered an environment ripe for film production. The area became home to numerous film companies, each establishing studio facilities that contributed to Fort Lee's status as the heart of American cinema.

Darian Woods notes:
"A predecessor to Universal Studios constructs the first permanent building, soon followed by others." [04:08]

This concentration of resources and expertise created an industrial agglomeration, where the proximity of related businesses and talents led to increased efficiency and innovation.

William Strange, an urban economics professor, provides insight into this phenomenon:
"Produce things more cheaply in a big city like New York, in part because there is expertise in New York that you're not going to find in a smaller city." [04:30]

4. Challenges and the Shift Towards Hollywood

Despite its initial success, Fort Lee faced significant challenges that ultimately led filmmakers to seek greener pastures in California.

Patent Issues:
Thomas Edison's aggressive patent strategies posed a major hurdle. By pooling numerous filmmaking patents and enforcing strict licensing fees, Edison controlled much of the industry's technological landscape.

Darian Woods highlights the tension:
"Edison has to start making films for the Kinetoscopes that he is selling to people." [02:19]

Richard Kozarski further explains:
"He was the king of using patents and he using lawyers to enforce his patent control." [05:39]

Weather Constraints:
Filmmakers were also constrained by the Northeast's harsh winters, which impeded year-round production. Attempts to relocate seasonal shoots to places like Florida, Cuba, and Jamaica were met with their own set of challenges, including lack of infrastructure and high costs for artificial lighting.

Richard Kozarski comments:
"If they had to build the interior of somebody's home, quite often they would create that on an open air stage." [05:56]

5. The Migration to Los Angeles

The persistent issues in Fort Lee led filmmakers to explore other locations, with California emerging as the new hotspot for several compelling reasons:

• Better Landscapes: California offered diverse and picturesque environments that were more conducive to creative filmmaking.

• Cost Advantages: Land and labor were cheaper, and Los Angeles was known as the "biggest open shop city in the country," meaning there were no strong unions to drive up wages.

• Ease of Operation: The geographical spread in California made it more difficult for Edison to enforce his patents, reducing the control he previously held in Fort Lee.

Richard Kozarski summarizes:
"California's varied landscapes and cheaper cost of land and labor were the bigger drivers of the shift." [07:26]

By 1921, Los Angeles had captured 80% of the world's movie market, cementing its dominance with landmark productions like The Jazz Singer ([07:52]).

6. The Enduring Legacy of Hollywood

Despite the initial reasons for Hollywood's prominence becoming obsolete—such as the need for natural light and proximity to Broadway—the city maintained its status as the filmmaking capital.

William Strange uses a historical analogy to explain this phenomenon:
"In the 1800s, factories were powered by water wheels... history still really matters." [08:08]

This highlights how foundational decisions and infrastructures can have long-lasting impacts, ensuring Hollywood's continued dominance even as economic and technological landscapes evolve.

7. Economic Insights and Future Considerations

The episode concludes by reflecting on the nature of economic clusters and their sustainability. While Hollywood remains a powerhouse, the transition from Fort Lee underscores that economic hubs can shift due to various pressures and opportunities.

Darian Woods remarks:
"The transition from Fort Lee to Hollywood shows that economic clusters may not last forever." [08:57]

Looking ahead, the hosts suggest that similar dynamics could affect current economic hubs, a topic slated for exploration in future episodes.

Notable Quotes:

• "We're climbing up a steep path in Fort Lee, New Jersey to tell the origin story of American filmmaking." – Darian Woods [00:19]

• "Edison is doing two things. First of all, he's making the hardware, but now he's in the entertainment business." – Richard Kozarski [02:05]

• "Produce things more cheaply in a big city like New York, in part because there is expertise in New York that you're not going to find in a smaller city." – William Strange [04:30]

• "California's varied landscapes and cheaper cost of land and labor were the bigger drivers of the shift." – Richard Kozarski [07:26]

• "In the 1800s, factories were powered by water wheels... history still really matters." – William Strange [08:08]

Conclusion

This episode of The Indicator from Planet Money meticulously charts the evolution of the American film industry from its Fort Lee origins to its establishment in Hollywood. Through expert insights and historical analysis, Darian Woods and Alexi Horowitz Ghazi provide a comprehensive understanding of how economic factors, technological advancements, and geographical advantages interplay to shape industry hubs. The story of Fort Lee serves as a compelling case study on the dynamics of economic clusters, offering lessons that remain relevant for today's economic landscapes.