Wednesday, August 12, 2020

A Bit of History

One publication I enjoy is Econ Focus, published by the Richmond Federal Reserve.  It is a quarterly magazine. 

Learning history gives us perspective on challenges we face today and tomorrow.  It also reminds us of the importance not taking any infrastructure improvement for granted.  

This most recent edition focuses on rural issues.  However, one of the most interesting articles is about the history of electrifying the rural parts of the U.S. In fact the title of the article is "Electrifying Rural America".

As you will see, electrifying the U.S. started in the 1870s and by the 1920s most cities ran on electricity.  In fact, by the 1930s nine out of 10 urban and nonfarm rural homes had electricity. It made daily living easier. 

However, the rural areas did not share in the infrastructure improvement. As you read the article, you may find arguments used by utility providers then sound familiar today. 

One fact I did not know, President Franklin Roosevelt created the Rural Electrification Administration by executive order.  More on that in the article.  And here you thought only recent presidents used executive orders excessively (Now do you see? That is why a sense of history is so important).  

Finally, one remaining observation.  In the early part of the 20th century or for that matter, any century, infrastructure is an absolutely critical component of a successful economic development program.  Enjoy the article. 

The article is by Tim Sablik.  Link to article:  https://bit.ly./rural-elec

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