What were the economic and political effects of the transcontinental railroad?

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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The Transcontinental Railroad reduced travel time from New York to California from as long as six months to as little as a week and the cost for the trip from $1,000 to $150. The reduced travel time and cost created new business and settlement opportunities and enabled quicker and cheaper shipping of goods.

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Helped settlements, cut time travel and helped the growth of cities. How did the railroad impact the economy? Linked the economy east to the west, allowed better transportation over longer distances.

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Here are some of the ways that the first transcontinental railroad—and the many other transcontinental lines that followed it—changed America.
  • It made the Western U.S. more important. ...
  • It made commerce possible on a vast scale. ...
  • It made travel more affordable. ...
  • It changed where Americans lived.


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The completion of the transcontinental railroad led to heightened racial tensions in California, as white workers from the East Coast and Europe could more easily travel westward where immigrant laborers were prevalent, says Princeton University Assistant Professor of History Beth Lew-Williams, author of The Chinese ...

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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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Since the new residents of the West could not survive without the use of the railroads, they were forced to pay whatever rates the raildroad companies set. With these huge stores of capital, the railroad companies were able to finance political campaigns through whatever and whomever was needed in government.

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The completion of the first transcontinental railroad revolutionized travel, connecting areas of the Western United States with the East. Prior to its completion, traveling to the West Coast from the East required months of dangerous overland travel or an arduous trip by boat around the southern tip of South America.

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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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The transcontinental railroad also brought settlers to the frontier. they brought lumber, wood, people, and other necessities. the railroads also brought settlers and miners who laid claim to Native American land. thus, weakening the Native American hold on the west.

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Answer and Explanation: The entire United States benefited financially from the joining of two railroads to form one transcontinental railroad. However, two industries benefited the most from the Transcontinental Railroad. Those were cotton and cattle.

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Transcontinental Railroad Facts
  • It was built to connect the United States' East and West Coasts. ...
  • Approximately 1,800 miles of track. ...
  • The transcontinental railroad cost roughly $100 million. ...
  • Workers came from a wide range of backgrounds and ethnicity. ...
  • President Abraham Lincoln signed the Pacific Railway Act.


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Good and bad The railroad is credited, for instance, with helping to open the West to migration and with expanding the American economy. It is blamed for the near eradication of the Native Americans of the Great Plains, the decimation of the buffalo and the exploitation of Chinese railroad workers.

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Instead of having to trek through the untamed wilderness or sail around South America, Americans could now ride on a train and get from Council Bluffs, Iowa to Sacramento, California in a matter of weeks. The Transcontinental Railroad also allowed for western goods to be more easily and quickly transported.

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