Growth of the American Economy

💵Growth of the American Economy Unit 6 – Westward Expansion & Resource Exploitation

Westward expansion transformed America in the 19th century. The Louisiana Purchase doubled the nation's size, while events like the Gold Rush and Homestead Act drew settlers west. This era saw rapid economic growth, technological advancements, and the displacement of Native Americans. Resource exploitation fueled development but had lasting impacts. Mining, logging, and agriculture reshaped the landscape. New transportation networks connected the frontier to eastern markets. These changes brought prosperity but also environmental degradation and social upheaval that still resonate today.

Key Events and Timeline

  • Louisiana Purchase (1803) doubled the size of the United States, providing vast new territories for westward expansion
  • Lewis and Clark Expedition (1804-1806) explored and mapped the newly acquired Louisiana Territory, paving the way for future settlement
    • Encountered numerous Native American tribes and documented the region's natural resources
  • Indian Removal Act (1830) authorized the forced relocation of Native American tribes from their ancestral lands in the Southeast to designated areas west of the Mississippi River
  • California Gold Rush (1848-1855) attracted hundreds of thousands of prospectors and settlers to the West Coast, rapidly increasing the population and economic development of the region
  • Homestead Act (1862) provided 160 acres of public land to settlers who lived on and improved the land for five years, encouraging westward migration and agricultural development
  • First Transcontinental Railroad completed (1869) connecting the East and West Coasts, facilitating faster and more efficient transportation of goods and people
  • Closing of the frontier (1890) marked the end of the era of westward expansion, as the U.S. Census Bureau declared that a contiguous frontier line no longer existed

Motivations for Westward Expansion

  • Manifest Destiny the belief that it was the divine right and duty of the United States to expand westward and spread its political, economic, and cultural influence across the continent
  • Economic opportunities the promise of cheap land, abundant natural resources, and potential for wealth attracted settlers and entrepreneurs to the West
    • Agricultural prospects (fertile soil, vast grazing lands) drew farmers and ranchers
    • Mineral wealth (gold, silver, copper) lured prospectors and mining companies
  • Religious freedom some groups, such as the Mormons, sought to establish communities in the West where they could practice their beliefs without persecution
  • Escape from societal constraints the frontier offered a chance for individuals to start anew and escape the rigid social hierarchies and norms of the East
  • Government incentives policies like the Homestead Act and land grants to railroad companies encouraged westward migration and development
  • Population pressure as the population of the eastern states grew, many looked to the West for new opportunities and living space

Major Routes and Trails

  • Oregon Trail a 2,000-mile overland route from Missouri to Oregon, used by hundreds of thousands of settlers, farmers, and entrepreneurs in the mid-19th century
    • Faced challenges such as river crossings, disease (cholera), and harsh weather conditions
  • Santa Fe Trail a 900-mile trade route connecting Missouri to Santa Fe, New Mexico, used primarily for commerce with Mexico
  • California Trail a branch of the Oregon Trail that led to the gold fields and settlements of California
  • Mormon Trail used by members of the Church of Jesus Christ of Latter-day Saints (Mormons) who fled persecution in Illinois and traveled to the Great Salt Lake Valley in present-day Utah
  • Pony Express a short-lived (1860-1861) but iconic mail service that used horseback riders to deliver mail from Missouri to California
    • Demonstrated the need for faster communication across the continent
  • Butterfield Overland Mail a stagecoach service that operated from 1858 to 1861, carrying passengers and mail from Missouri to California via a southern route through Texas, New Mexico, and Arizona
  • Transcontinental Railroad a network of railroads that connected the East and West Coasts, completed in 1869
    • Central Pacific Railroad built eastward from Sacramento, California
    • Union Pacific Railroad built westward from Omaha, Nebraska

Impact on Native American Populations

  • Displacement and forced relocation Native American tribes were often forcibly removed from their ancestral lands to make way for white settlers and development
    • Trail of Tears (1838-1839) the forced removal of the Cherokee Nation from the Southeast to present-day Oklahoma, resulting in thousands of deaths
  • Loss of traditional hunting grounds and resources as settlers claimed land and resources, Native Americans found it increasingly difficult to maintain their traditional ways of life
  • Spread of diseases (smallpox, measles) introduced by European settlers, against which Native Americans had little immunity, decimating tribal populations
  • Cultural assimilation efforts by the U.S. government and religious organizations aimed to "civilize" Native Americans by suppressing their languages, religions, and customs
  • Broken treaties and land disputes the U.S. government often failed to honor treaties that guaranteed Native American rights to land and resources, leading to conflict and resentment
  • Armed conflicts and wars (Sand Creek Massacre, Red Cloud's War) as Native Americans resisted encroachment on their lands, violence often erupted between tribes and U.S. military forces or settlers
  • Establishment of reservations the U.S. government created designated areas for Native American tribes to live, often in marginal lands with limited resources

Resource Exploitation and Economic Growth

  • Agricultural development settlers transformed vast tracts of land into farms and ranches, producing crops (wheat, corn) and livestock (cattle, sheep) for local consumption and export
  • Timber industry logging operations expanded to meet the demand for building materials and fuel, particularly in the Pacific Northwest
  • Mining boom the discovery of precious metals (gold, silver) and other minerals (copper, lead) led to a surge in mining activities and the growth of boomtowns
    • Comstock Lode (Nevada) a major silver deposit discovered in 1859, sparking a rush of prospectors and investors
  • Expansion of transportation networks the construction of roads, canals, and railroads facilitated the movement of goods and people, connecting resource-rich areas to markets
  • Industrialization the availability of raw materials and growing markets in the West stimulated the growth of manufacturing and processing industries
  • Rise of commercial centers cities like San Francisco, Denver, and Seattle emerged as hubs of trade, finance, and commerce, serving the needs of the expanding western economy
  • Environmental impacts resource exploitation often led to deforestation, soil erosion, water pollution, and the depletion of wildlife populations

Technological Advancements

  • Steamboats and riverboats improved transportation on inland waterways (Mississippi River, Missouri River), facilitating trade and travel
  • Telegraph communication the first transcontinental telegraph line (1861) allowed for near-instant communication between the East and West Coasts
  • Barbed wire fencing invented in 1874, barbed wire allowed ranchers to enclose their land and control their livestock, transforming the open range into a system of private property
  • Windmills and water pumps innovations in water-pumping technology enabled settlers to access groundwater for irrigation and domestic use in arid regions
  • Agricultural machinery (steel plow, mechanical reaper) new tools and equipment increased the efficiency and productivity of farming, allowing for the cultivation of larger areas
  • Refrigerated rail cars introduced in the 1870s, refrigerated transport allowed for the long-distance shipping of perishable goods (meat, fruit), expanding markets for western producers
  • Improved mining techniques (hydraulic mining, cyanide process) advancements in mining technology made it possible to extract minerals from lower-grade ores and harder rock formations

Social and Cultural Changes

  • Demographic shifts westward expansion led to a more diverse population, including immigrants from Europe and Asia, as well as African Americans seeking new opportunities
  • Growth of cities and towns the development of urban centers in the West created new social and cultural dynamics, as people from different backgrounds interacted and formed communities
  • Emergence of western culture a distinct cultural identity emerged, characterized by values of individualism, self-reliance, and ruggedness
    • Cowboy culture the mythologized image of the American cowboy became a symbol of the frontier spirit
  • Education and cultural institutions schools, libraries, and museums were established in western communities, promoting literacy and cultural enrichment
  • Role of women the frontier offered new opportunities for women to challenge traditional gender roles and assert their independence
    • Homesteading women could claim land in their own right and operate farms and ranches
    • Entrepreneurship women found success as business owners (hotels, restaurants) and professionals (teachers, doctors)
  • Social reform movements the West became a testing ground for progressive ideas and experiments in social organization
    • Temperance movement efforts to prohibit alcohol consumption gained traction in some western communities
    • Utopian communities groups like the Oneida Community and the Shakers established communal settlements based on shared values and beliefs

Long-term Economic Consequences

  • Agricultural dominance the West became a major producer of agricultural commodities (grains, livestock), contributing significantly to the nation's food supply and export economy
  • Mineral wealth the extraction of precious metals and other minerals from western mines provided a significant source of revenue for the U.S. government and private investors
  • Industrial growth the availability of raw materials and expanding markets in the West fueled the growth of manufacturing and processing industries, contributing to the nation's overall economic development
  • Transportation infrastructure the networks of roads, canals, and railroads built to support westward expansion formed the backbone of the nation's transportation system, facilitating commerce and travel
  • Regional economic disparities the concentration of wealth and resources in some areas of the West led to uneven economic development and disparities between regions
  • Boom-and-bust cycles the reliance on resource extraction and speculative investments led to periods of rapid growth followed by economic downturns, creating instability in some western communities
  • Legacy of land ownership patterns the distribution of land through government policies (Homestead Act, railroad land grants) and private acquisition shaped patterns of land ownership and use that persist to the present day
  • Urbanization the growth of cities and towns in the West contributed to the overall trend of urbanization in the United States, as population and economic activity increasingly concentrated in urban areas


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AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.