Why Transportation and Expansionist Developments Spark the Economic Growth during the Period From 1860-1900 in the US - Essay Example

The period from 1860- 1900 was characterized by remarkable economic growth in the US. This period s considered to be one of the most critical in US history especially with regard to economic growth. Most economic and history scholars agree that remarkable economic growth witnessed during this period can be highly attributed to the massive growth of the industry during that period (Cain and Jonathan 20). In fact, most of them agree that the period from 1860 to 1900 is when the US shifted from the farm economy to an industry-based economy which was very critical in spurring economic growth.

Most records show that this is the period when the US leaped ahead of the UK for the first time to become the first in the quantity of manufacturing output. It should be noted that there are numerous important factors that helped promote remarkable economic growth during the period from 1860- 1900 in the US (Engerman and Gallman 16). Out of the numerous factors, transportation and expansionist developments were credited for sparking economic growth during that period. Throughout human history, development in transportation has always been seen to make human lives better and facilitate not only the economic exchanges but also the cultural exchanges.

This scenario was no different in the American economic history where transportation proved to be the key driver of economic growth and development. During the period from 1860- 1900, there was an explosion of new inventions and discoveries that aided the advancement of transportation (Cain and Jonathan 76). Some of the main transportation developments that sparked economic growth in the US at that period were the expansion of railroads and construction of stringer bridges and tracks that could handle heavier locomotives and cars.

Therefore, these locomotives and cars would carry increased quantities of goods and more people at a given time which spurred economic growth. Transportation of enormous quantities of goods that were produced at that time such as wood products, textiles, food, steel, coal, and oil was much easier and cheaper thus spurring economic growth because these goods are critical ingredients in production (Engerman and Gallman 43). Besides, such advancements in transportation played a crucial role in reducing the cost of production; locomotives and cars would carry goods and people at a much cheaper cost since the railroads had been greatly expanded.

Also, the completion of the transcontinental railroad in 1869 facilitated the connection of major US cities which was critical in spurring economic growth through effective and cheaper transportation of goods and people (Cain and Jonathan 106). As a result, the US economy experienced increased economic activities as conducting business was relatively cheaper, hence increased economic growth. Moreover, development in transportation enhanced commerce that resulted in huge tax revenues for the US thus spurring economic growth.

As a result of increased economic activities because of a significantly developed transport system, the US economy was growing at a rate of over 4 percent for real GDP per capita and over 6 percent for real; undisputable impressive economic growth. This significant economic growth prompted Economist Milton Friedman to state that this rate of economic growth was the highest rate of the decades during that period compared to previous decades (Cain and Jonathan 185). In addition, expansionist developments played a very critical role in sparking economic growth during the period from 1860- 1900 in the US.