Economics of Westward Expansion (1865-1898)

This video focuses on the economic aspects of westward expansion in the United States between 1865 and 1898.
Specifically, we will examine the causes and effects of the settlement of the West from 1877 to 1898.

A significant shift occurred in the agricultural West during this period: the mechanization of agriculture.
Machines like the mechanical reaper and combine harvester replaced manual labor and animal power for planting and harvesting.
Effects of mechanization:
- Increased Crop Production: Farmers could produce significantly more crops.
  - Example: Corn and wheat production roughly doubled between 1870 and 1900.
- Obsolescence of Small Farmers: Small farmers struggled to compete with larger, mechanized farms due to the high cost of new machinery.
  - Many small farms were bought out by larger agricultural businesses.

Crop prices declined because of overproduction, further pressuring small farmers.
Industrial trusts kept prices high on manufactured goods, which farmers needed to buy.
Farmers faced high railroad rates for shipping their crops to market.

The National Grange Movement was founded in 1868 to unite isolated farmers for socialization and education.
The Grange quickly became politically active and advocated for laws regulating railroad rates and abusive corporate practices.
Granger Laws:
- Midwestern states passed laws regulating railroad rates for freight and outlawing abusive corporate practices.
- The most significant law was the Commerce Act of 1886, which mandated reasonable and just railroad rates.
- The Interstate Commerce Commission (ICC) was established as a federal agency to enforce these regulations.

The federal government strongly encouraged westward migration and settlement.
Railroads were crucial for facilitating mass migration.
Two key sets of laws promoted westward expansion:
- Pacific Railroads Acts: The federal government granted large amounts of land to railroad companies to build a transcontinental railroad.
  - In 1869, the first transcontinental railroad was completed at Promontory Summit, Utah.
  - Four more transcontinental railroads were built with government assistance over the following decades.
- Homestead Act of 1862: Potential migrants were granted 160 acres of free land in the West if they agreed to farm and settle it.

160 acres not enough in the Midwest to be viable, leading to many farmers going bust.
Small farms were often bought up by larger, mechanized farms.

The discovery of gold and silver attracted people to the West.
California Gold Rush of 1848 was an early example.
In 1859, gold was discovered at Pike's Peak, leading to a massive influx of people into Kansas and Nebraska.
Boomtowns like Denver City and Boulder City sprang up rapidly as a result of these migrations.
Boomtowns were often very diverse due to the widespread desire for gold, regardless of race or ethnicity.