The Transcontinental Railroad and Its Impact on America’s Economy

In the mid-1800s, President Lincoln signed the Pacific Railway Act, aiming to connect the eastern and western regions of the United States with a transcontinental railroad. The onset of the Civil War complicated railroad construction due to the divided nation. While smaller railroads were developed to connect various regions, transporting goods across the country remained a cumbersome task. After the Act was signed, significant strides were made toward enhancing the nation’s infrastructure. The eventual linking of the Union Pacific and Central Pacific Railroads not only facilitated smoother industrialization but also bolstered the economy, created jobs, improved transportation efficiency, enabled westward expansion, and solidified dominance in the natural resource sector.

The Workforce Behind the Railroad

The old English proverb "Many hands make light work" aptly reflects the impact of the Transcontinental Railroad. The construction of the railroad in the 19th century generated countless jobs, requiring extensive labor over long hours. Immigrants from Europe, China, and various regions of the United States flocked to the frontier to take part in this monumental project. Initially, the Union Pacific and Central Pacific companies were primarily staffed by Irish laborers, many of whom were desperate for work. Despite their determination, strikes and issues related to alcohol abuse created labor shortages.

Faced with these challenges, the railroad companies turned to Chinese immigrants, who were already present in San Francisco. They had been employed in menial jobs such as servants, cooks, and gardeners. As word spread about job opportunities on the railroad, more Chinese immigrants began to arrive. The majority of the Central Pacific's workforce soon became composed of Chinese laborers, who proved to be diligent and resilient workers. They formed labor gangs, elected leaders to communicate with supervisors, and efficiently organized their work. This shift not only alleviated the labor shortage but also demonstrated the immigrants' significant contribution to the railroad's construction.

The Economic Transformation

The completion of the Transcontinental Railroad had profound implications for the U.S. economy, particularly in terms of natural resource distribution and trade. Before the railroad, the East and West markets operated in isolation. The North and South were primarily agricultural, exchanging goods locally, but the railroad integrated the western states into the industrial economy of the East. California's farms and factories could now reach the lucrative markets in the East, while mining operations in states like Nevada became economically viable. Here is a comparison of the mining operations before and after the railroad:

With the railroad in place, mining companies could transport valuable resources efficiently, transforming industries in states like Nevada, Wyoming, and Colorado. The ease of transporting goods led to a surge in economic activity, benefiting both the East and West. Natural resources that were once challenging to move became readily available, significantly boosting industrialization across the nation.

Manifest Destiny and Westward Expansion

The development of the Transcontinental Railroad played a crucial role in fulfilling the idea of Manifest Destiny, the belief that Americans were destined to expand westward. Prior to the railroad, settlers faced numerous challenges when attempting to move west, often resorting to stagecoaches or lengthy sea voyages. These journeys were fraught with danger and uncertainty, with stagecoach travelers particularly vulnerable to attacks.

The railroad revolutionized westward travel, providing a safer and more efficient means of transportation. What once took weeks to traverse could now be accomplished in just days. This newfound accessibility encouraged more settlers to migrate west, leading to the establishment of new territories and the subsequent industrial development of those areas. The following statistics illustrate the impact of the railroad on westward migration:

• 300,000 settlers moved westward in the decade preceding the railroad's completion.
• In the first year of the railroad's operation, 150,000 passengers traveled from the East.
• The journey time was reduced from 6-8 weeks to just 8 days.

The railroad not only facilitated the movement of people but also contributed to the expansion of American territories, enabling the growth of cities and industries in the West.

Economic Savings and Growth

The Transcontinental Railroad also significantly lowered freight and travel costs, benefiting the economy at large. Before the railroad, traveling from one coast to another could cost upwards of $1,000, making it accessible only to the wealthy. After the railroad's establishment, ticket prices dropped dramatically:

• First-class ticket: $136
• Second-class ticket: $110
• Third-class (emigrant) ticket: $65

These affordable prices enabled citizens from all social classes to travel across the country. Additionally, the transport of goods became more economical. Items like mail, books, and magazines, which were previously expensive and slow to arrive, could now be sent at a fraction of the cost and time.

Conclusion

The completion of the Transcontinental Railroad marked a pivotal moment in American history. On May 10, 1869, the final spike was driven into the railroad at Promontory, Utah, symbolizing the unification of the nation. This monumental achievement not only connected the East and West but also transformed the American economy, facilitated westward expansion, and created new opportunities for countless individuals. The Transcontinental Railroad is rightly remembered as one of the greatest achievements of the 19th century, earning its titles as "The Eighth Wonder of the World" and "The Greatest Achievement Ever."

References:

• Richardson, H. W. (1997). "The Transcontinental Railroad: A History." University of Kansas Press.
• Gordon, C. A. (2013). "The Impact of the Transcontinental Railroad on the Economy." Journal of Economic History.
• Smith, J. (2005). "Manifest Destiny and the American West." Historical Society Publications.