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    Freakonomics Radio

    549. The First Great American Industry

    Thu Jul 13 2023
    whalingenvironmental activismhistoryeconomyculture

    Description

    This episode explores the history and impact of the whaling industry. It begins with an introduction to environmental activist Paul Watson and his campaign against whale hunting. The episode then delves into the historical significance of whaling, including its role in the global economy and culture. It discusses the risks and rewards of whaling, as well as the decline of the industry and its consequences. Overall, the episode provides a comprehensive overview of whaling's past and its lasting effects.

    Insights

    Whaling played a significant role in America's culture and offered adventure to young men looking for opportunities.

    The whaling industry provided a sense of adventure and opportunity for young men, contributing to America's cultural identity.

    Whaling ports were centers of talent, information flow, and access to capital and supplies.

    Whaling ports served as hubs for talent, information exchange, and access to resources, contributing to the success of the industry.

    The decline of American whaling had a significant impact on whale populations, particularly Baleen and Right Whales.

    The decline of the American whaling industry had detrimental effects on whale populations, especially for species like Baleen and Right Whales.

    Chapters

    1. Paul Watson and the Fight Against Whale Hunting
    2. The Historical Significance of Whaling
    3. Whaling's Impact on American Economy and Culture
    4. The Risks and Rewards of Whaling
    5. The Decline of Whaling and Its Impact
    6. The Decline of American Whaling and its Consequences
    Summary
    Transcript

    Paul Watson and the Fight Against Whale Hunting

    00:03 - 07:56

    • Paul Watson is an environmental activist known for confronting Japanese whale hunting ships in Antarctica.
    • Watson has been called a pirate and an eco-terrorist due to his aggressive tactics.
    • He co-founded Greenpeace but was later kicked off the board and established the Sea Shepherd Conservation Society.
    • After being forced out of Sea Shepherd, Watson started the Captain Paul Watson Foundation.
    • His current campaign aims to stop the killing of endangered fin whales between Iceland and Greenland.
    • Whale hunting still occurs despite public sentiment being pro-whale since the Save the Whales movement in the 1970s.

    The Historical Significance of Whaling

    07:31 - 14:59

    • The whaling industry played a significant role in global economy and culture, particularly in places like Nantucket, Massachusetts.
    • Nantucket was once considered the capital of America's early history due to its dominance in whaling.
    • Whaling provided resources such as whale oil that were essential for lighting and lubricating machines during the industrial age.
    • The first English settlers on Nantucket came to be sheep herders, but turned to fishing when they realized the abundance of right whales along the south shore.
    • Whaling took off on Nantucket due to a source of cheap labor provided by the Wampanoag people.
    • The discovery of sperm whales led Nantucketers to focus exclusively on hunting them, requiring bigger and faster ships.

    Whaling's Impact on American Economy and Culture

    14:39 - 22:17

    • The whaling industry was not a huge slice of the American economy, but its contributions were important.
    • During the colonial period, whale products were excellent for export and contributed to the colonial economy.
    • The British profited from the exporting of whale products from the American colonies.
    • Whaling was a business that did not require a specific charter from the crown.
    • The early federal authorities recognized the value of having a whaling industry for commercial development and maritime activity.
    • Whaling vessels were sometimes pressed into military service during conflicts like the Civil War.

    The Risks and Rewards of Whaling

    21:56 - 29:23

    • Whaling ports were places of talent, information flow, and access to capital and supplies.
    • The U.S. became the center of the global whaling industry due to their efficient and cost-effective operations.
    • There were high returns in whaling, but also tremendous variability and the risk of negative returns.
    • Modern venture capital firms are structured similarly to 19th century whaling corporations.
    • Investor groups pooled resources and spread their investments across a portfolio of whaling voyages.
    • Negative returns in whaling were often caused by not finding whales or losing vessels at sea.

    The Decline of Whaling and Its Impact

    28:55 - 36:25

    • Nantucket was the leading whaling port until New Bedford took over in 1851.
    • Nantucket's decline began in the early 1840s due to shallow harbor and fire damage.
    • Some Nantucketers sailed to California for the gold rush, abandoning their ships at the Golden Gate.
    • New Bedford also lost its grip on the whaling industry within a few decades.
    • Whaling scholarship offers insights into business organization, compensation, and risk allocation.
    • Investments in whaling ships were more concentrated than textile factories, with powerful incentives for agents to make good decisions.

    The Decline of American Whaling and its Consequences

    36:01 - 43:26

    • The American whaling industry transitioned from a partnership model to a corporate form in the 1950s.
    • The decline of the whaling industry was mainly due to the availability of cheap substitutes like coal gas and caracine.
    • Energy sources on dry land, such as coal and petroleum, made whaling less attractive.
    • Investment dollars stopped flowing into the whaling industry as it declined.
    • Whaling veterans found new places to invest their money, time, and ideas.
    • The decline of American whaling had a significant impact on whale populations, particularly Baleen and Right Whales.
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