Railroad expansion affected the US economy by creating jobs, establishing a national market, establishing a cattle industry on the Plains, and allowing certain people to acquire great wealth through investing in the railroad.
Railroads created a more interconnected society. Counties were able to more easily work together due to the decreased travel time. With the use of the steam engine, people were able to travel to distant locations much more quickly than if they were using only horse-powered transportation
It made travel more affordable, made the Western U.S. more important, made commerce possible on a vast scale, changed where Americans lived, altered Americans’ concept of reality, and also pioneered government-financed capitalism. In addition to transporting western food crops and raw materials to East Coast markets and manufactured goods from East Coast cities to the West Coast, the railroad also facilitated international trade and spread new ideas.
