How did railroads help the growth of business in the early 1900s?

If we are talking only about the early 1900s, railroads helped business grow by providing a wide network of relatively easy transportation.  This network helped businesses get raw materials and distribute their finished goods.


Before the early 1900s, railroads helped businesses grow in other ways as well.   When the railroads were expanding rapidly, they helped to drive industrialization.  They created a huge demand for steel for rails and rolling stock.  This was instrumental in allowing...

If we are talking only about the early 1900s, railroads helped business grow by providing a wide network of relatively easy transportation.  This network helped businesses get raw materials and distribute their finished goods.


Before the early 1900s, railroads helped businesses grow in other ways as well.   When the railroads were expanding rapidly, they helped to drive industrialization.  They created a huge demand for steel for rails and rolling stock.  This was instrumental in allowing the United States to industrialize.


By the early 1900s, this era of rapid railroad growth was largely finished.  Now, the main way that railroads could help business was by providing transportation.  Before railroads (and before large trucks and freeways), it was hard to move heavy goods from place to place except where there was navigable water.  This made it so that factories had to be near to sources of raw materials.  It also meant that it was very hard to move heavy goods from a factory to the places where consumers lived.  This made it harder for businesses to get really big.  When the railroad network got to cover the entire country, it came to be much easier for businesses to grow and to provide the goods that people wanted across the country.


Much of the growth in the US economy that was due to railroads happened before 1900. However, the railroads still helped American business grow in the early 1900s by linking businesses to consumers more efficiently. 

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