John Stevens is considered to be the father of American railroads. In 1826 Stevens demonstrated the feasibility of steam locomotion on a circular experimental track constructed on his estate in Hoboken, New Jersey, three years before George Stephenson perfected a practical steam locomotive in England.

The modern railroad was not the work of a single person but evolved from "wagonways" used in mining. British engineer Richard Trevithick is credited with building the first full-scale working steam locomotive in 1804 to haul iron. However, George Stephenson, known as the "Father of Railways," designed the first public inter-city railway line, the Liverpool and Manchester Railway, which opened in 1830. The primary motivation for the invention was industrial efficiency; the Industrial Revolution created a desperate need to transport massive quantities of coal, iron, and raw materials from mines to factories and ports more quickly and cheaply than horse-drawn wagons or canal boats could manage. By standardizing the "gauge" (the distance between tracks) and perfecting steam power, these pioneers transformed the railroad from a niche mining tool into a global transportation network that eventually allowed for the rapid movement of people, effectively shrinking the world and fueling the growth of modern capitalism.