Question

Difficulty: EasyMarket Revolution: Technology, Transportation, and Industry

"The great canal, which connects the western waters with the Hudson River, is now completed. It has already begun to pour into our markets the rich treasures of the West. Wheat, flour, and other agricultural products, which formerly could not bear the expense of transportation, are now brought to New York at a cheap rate."
— New York Newspaper Editorial, 1825

Which of the following was a primary economic consequence of the development described in the excerpt?

  1. A
    It was built and funded entirely by the federal government under the American System.
  2. B
    It caused a return to localized, self-sufficient household manufacturing in western states.
  3. It lowered shipping costs and integrated the regional economies of the Northeast and the Midwest.Answer
  4. D
    It led to the immediate decline of cotton production in the Deep South.

Answer

The canal lowered shipping costs and integrated the regional economies of the Northeast and the Midwest.
The correct answer is correct because the Erie Canal linked the Great Lakes to the Hudson River, allowing agricultural products from the Midwest to flow directly to Northeast cities at a fraction of their previous shipping cost. This dramatically reduced shipping costs, fostered commercial farming in the West, and integrated the Northeast and Midwest economies.

Step-by-Step Solution

1
Identify the transportation development described in the stimulus.
The excerpt describes a canal connecting the "western waters" (Great Lakes) with the Hudson River, which refers to the Erie Canal completed in 1825.
This establishes the historical context of the Market Revolution and internal improvements.
2
Evaluate the primary economic effect of this development.
The canal allowed western agricultural goods to reach New York at a cheap rate, reducing isolation.
Lowered transportation costs directly fostered trade and economic interdependence between the Northeast and Midwest.

Key Concept

The role of transportation innovations, such as canals, in lowering shipping costs and creating a national, integrated market economy during the early nineteenth century.
Estimated Time:1m 0s
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