Railroad Development

The federal government gave land and made loans to the railroad companies. Why was the government so eager to promote the growth of railroads?

The growth of railroads was very beneficial to the United States. Railroads made westward expansion a reality for both private settlers and businesses. Railroads connected different regions of the country and made is possible for these regions and towns to specialize in a specific product and be able to trade efficiently and successfully with other parts of the country, which boosted the economy. These towns were able to ship much bigger quantities of their product around the country and therefore they became more prosperous. Iron, steel, lumber and glass industries expanded in the country because the supplies were needed to build more railroads. Railroads created job opportunities (although the conditions were brutal) for out of work veterans and immigrants, especially Chinese immigrants. Railroads allowed cities to grow and branch out, filling up with employees. For example the town of Pullman was created as a place for employees of the sleeper and other railroad car manufacturing factory to live in. The government was able to enjoy the success of all these new industries because of railroads and railroad companies.