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How did railroads affect capitalism?

The railroads not only set in motion the combined forces of mass production, distribution, and communication under which the American economy grew by leaps and bounds, they also shaped the foundation of modern capitalism.



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Railroads expanded significantly, bringing even remote parts of the country into a national market economy. Industrial growth transformed American society. It produced a new class of wealthy industrialists and a prosperous middle class. It also produced a vastly expanded blue collar working class.

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Railroads became a major industry, stimulating other heavy industries such as iron and steel production. These advances in travel and transport helped drive settlement in the western regions of North America and were integral to the nation's industrialization.

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Railroads became a major industry, stimulating other heavy industries such as iron and steel production. These advances in travel and transport helped drive settlement in the western regions of North America and were integral to the nation's industrialization.

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What are at least three ways that railroads affected the economy? Able to move supplies in and out, brought metals and produce to the East, allowed towns to be built around tracks, brought workers to the West.

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Railroads had a significant impact when they were introduced to the American West in the 1870s. Rail access spurred white migration and land occupation, altered the cattle industry, and affected the soil ecosystem.

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But there was also a dark side to the historic national project. The railroad was completed by the sweat and muscle of exploited labor, it wiped out populations of buffalo, which had been essential to Indigenous communities, and it extended over land that had been unlawfully seized from tribal nations.

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“The construction of railroads in Afro-Eurasia helped European imperialism because it allowed Europeans to increase their political power in Asia and Africa.”

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