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How did railroads contribute to the rise of industrial capitalism?

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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The increase in railroad mileage made it possible to transport goods and people over long distances quickly and efficiently. This led to the creation of a national market for goods, which in turn encouraged mass production and mass consumption.

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the efficient transportation of raw materials and finished goods.

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The development of railroads was one of the most important phenomena of the Industrial Revolution. With their formation, construction and operation, they brought profound social, economic and political change to a country only 50 years old.

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The railroads powered the industrial economy. They consumed the majority of iron and steel produced in the United States before 1890. As late as 1882, steel rails accounted for 90 percent of the steel production in the United States. They were the nation's largest consumer of lumber and a major consumer of coal.

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Where railroads went, towns and cities with bustling new commerce arose, all dependent on the railways for shipments of food and goods. The construction of the railroads spawned huge new industries in steel, iron, and coal. No other business so dramatically stimulated and embodied the industrialization process.

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By 1900, much of the nation's railroad system was in place. The railroad opened the way for the settlement of the West, provided new economic opportunities, stimulated the development of town and communities, and generally tied the country together.

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