3. Despite the initial sentiment of economic historians, the railroad was not an integral part of American economic development after 1860. Even though the railroads were not crucial to economic growth does not negate the fact that the railroads were the first big business in the United States. The railroads benefited from economies of scale, increases in technology and pro-railroad legislation. The miles of track line increased exponentially from 30,000 miles of main line track in 1860 to 254,037 miles by 1916.
Just as the railroad created economic growth it also brought a lot of corruption with it. The railroad companies were given government bonds that were funded by the taxpayers and they were also given enormous amounts of land to build on. There was little incentive to function efficiently or responsibly. ‘Stocks were manipulated, as bosses bought struggling eastern rail companies, spread rumors that the railroad line would link to these companies.’ (Coffey, W, Corruption and the Transcontinental Railroad, http://waltercoffey.wordpress.com/2013/01/17/corruption-and-the-transcontinental-railroad/).
The expansion of railroads, canals, and steamships facilitated economic growth, created new industries and innovations, and set the stage for the continued expansion of the American economy in the years to come. While these developments had their social and environmental costs, they nonetheless represent a critical chapter in the history of the American economy and its ongoing evolution. One significant impact of transportation developments during this period was the opening up of new markets. The expansion of railroads, canals, and steamships made it possible for goods to be transported more quickly and efficiently, and at a lower cost.
In the late 1800s, the Transcontinental Railroad was constructed and that transformed the United States in many ways. This railroad helped expand the United States out to the west that could sew the country together and be connected in some sort of way. The Transcontinental Railroad impacted the United States economically by populating new areas for agriculture and mining, taxing railway shipping, and by importing and exporting. To start off with, a reason for an economic impact is the way the railroad helped populate new land that can open for mining, agriculture, and retail. Due to being able to mine, farm, and sell more helps the country expand in valuable resources found in the country, while also being able to sell food and clothes the
With more railroads being built, it helped to establish the United States, and industries in the West used the railroads to connect industry to retail markets in Eastern United States. Without railroads, it would have been hard for the Western States to expand.
The central route of the railroad began in Omaha, Nebraska, and ended up in Sacramento, California. By completing the railroad, more people were allowed to move and settle in other places, and it promoted the Western
The Transcontinental Railroad greatly impacted America. It connected the East to the West and made the world seem much smaller. This success gave way for more railroads to be made, multiple withing the span of just years! The acts and treaties along the way helped improve the land as this move Westward was taking place. People were also gaining more abstract feelings of hope and optimism.
In 1830 the Baltimore and Ohio railroad tested a steam powered train this lead to Americans developing their own railroads.(pg. 256) Railroads helped transport goods and people move across the country faster than ever before. Railroads were used for many other things including transporting mail from one place to another. This helped people communicate with one another faster. By 1810 and 1820’s the number of letters delivered sent out went up by five million annually and cut the time in half to reach between cities and states.
The new trains provided more efficient ways for goods to travel. The railroad system brought in a variety of new ideas and people into the town.
After the railroad lines had been built out west changes occurred for both the Western and Eastern United States. By 1860 railroads connected nearly every major city and over 80 percent of farms were 5 miles from the railroad. It was easier and faster to transport goods such as; lumber, grain, corn, etc. to the Eastern United States. Farming changed with railroads because farmers could put their products and animals on the trains and make money. Within the first 10 years of completion the railroad had shipped over $50 million in goods.
The rail system allowed people and manufactured goods to be transported quickly and for long distances. This was significant for who had migrated due to the discovery of resources such as iron and gold (Railroads and Westward Expansion,
The first way that the economy was impacted was that with the ease and efficiency of the railroads, they created a large demand for goods and labor because they needed a lot of people to help build the railroads and also needed a large quantity of steel for the rails and wood for the railroad ties. Secondly the railroads created a huge national market because of the simplicity of delivering goods from place to place. The railroads helped the people in even the most rural place prosper with the cost efficient transportation of the trains. From 1830 to 1861, the United States laid aproximately 30,000 miles of railroad track, which led to an increase in demand for coal which was used to produce iron for the
Before the 1800s, there were two early roads, Forbes and Wilderness Road. In 1811, the National Road known as Cumberland Road was built to reach Western settlements, because they needed a road to ship farm products that connect East and West. The National Road passed thousand of wagons and coaches. John F. Stover states in American Railroads, “The rich agricultural production of the country, the small but expanding factories of eastern cities, and the largely untapped natural resources of the nation-all of these called for improvements in transport. ”(Stover1)
With the advent of the railroad, many of these issues disappeared. Railroads had a major impact on advancing the American economy, transforming America into a modern society, and improving an antiquated transportation system. The building of railroads created rapid economic growth in America. Railroad companies employed more than one million workers to build and maintain railroads. At the same time, coal, timber, and steel industries employed thousands of workers to provide the supplies necessary to build railroads (Chapter 12 Industrialization).
The Effects of the Transcontinental Railroad: Native Americans, Society, and Economy The Transcontinental Railroad had a drastic effects on many aspects of life during the 1860s, including society, the economy, and the Native Americans’ way of life. These are just a few of the ways the Transcontinental Railroad changed the world. Native Americans were forced to relocate, society had a new outlook on life, and the economy had been boosted almost incalculably.
