6.4 Development of frontier economies
3 min read•july 25, 2024
The American frontier played a pivotal role in shaping the nation's economic development. Characterized by abundant resources but scarce labor and infrastructure, frontier economies evolved from subsistence farming to integrated markets. Land acquisition methods and population growth patterns fueled westward expansion.
and were key drivers of the western economy. Crop specialization, technological innovations, and the establishment of agricultural colleges boosted productivity. The Gold Rush and subsequent mineral discoveries created boom-and-bust cycles, while ranching spawned the iconic cattle industry and cow towns.
Economic Development of the American Frontier
Characteristics of frontier economies
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- Frontier economies characterized by abundant natural resources like timber and minerals, scarce labor and capital limiting development, and limited infrastructure hindering transportation and communication
- Evolution stages progressed from initial settlement with subsistence farming to emergence of local markets and trade, finally integrating with broader national economy through improved transportation
- Land acquisition methods included of 1862 granting 160 acres to settlers and land grants to railroads incentivizing westward expansion
- Population growth patterns saw waves of migration pushing settlement westward, establishing new territories and states ()
- Economic diversification over time transitioned from primary resource extraction to manufacturing and services as frontier matured
Agriculture and mining in western economy
- Agriculture saw crop specialization by region (wheat in Great Plains) and technological innovations like steel plow and mechanical reaper increasing productivity
- of 1862 established agricultural colleges promoting scientific farming techniques
- Ranching developed open range cattle industry, spawned cow towns (), and long-distance cattle drives ()
- Mining experienced Gold Rush of 1849 and subsequent mineral discoveries (silver in Nevada) creating boom-and-bust cycles in mining towns
- Transition from placer to hard rock mining required more capital and technology
- Economic interdependencies formed as sectors developed supply and demand relationships, supporting industries emerged (equipment manufacturing)
Transportation and Business in the Frontier
Transportation networks for regional integration
- Canals like reduced transportation costs, expanded internal waterway systems connecting regions
- Railroads, with completion in 1869, transformed frontier economy
- Land grant system incentivized railroad construction, impacting settlement patterns and market access
- Railroads led to standardization of time zones improving scheduling and communication
- Stagecoach and wagon trails (Oregon Trail) played crucial role in early frontier transportation, gradually replaced by railroads
- Telegraph lines developed parallel to railroads, revolutionized communication and market information flow
Entrepreneurship in frontier development
- Entrepreneurs faced challenges: limited capital access, distance from established markets, unreliable transportation/communication, cyclical frontier economies
- Opportunities included low barriers to entry, abundant resources, rapid population growth creating demand
- Frontier businesses thrived: general stores, saloons, hotels, blacksmiths, livery stables meeting settlers' needs
- Banks and credit played crucial role in frontier development, financing new ventures and expansion
- Boom-and-bust cycles impacted business sustainability, requiring adaptability and resilience
Impact of frontier on US industrialization
- Frontier contributed to national economic growth by expanding agricultural production, supplying raw materials for industry (cotton, timber)
- Population redistribution through westward migration impacted labor markets in both East and West
- Frontier challenges spurred technological innovations (barbed wire, windmills)
- Influenced national policies on tariffs, land distribution, and infrastructure development
- Fostered national market by increasing regional specialization and enhancing inter-regional trade
- Long-term effects shaped American economic institutions, influenced entrepreneurial spirit and economic mobility
Key Terms to Review (23)
Agriculture: Agriculture is the practice of cultivating land, growing crops, and raising animals for food, fiber, and other products used to sustain and enhance human life. This vital sector has played a significant role in shaping economies and societies, providing the foundation for trade, settlement patterns, and community development. Its evolution influenced various economic stages, from frontier economies expanding into new territories to the mobilization efforts seen during major conflicts.
Boomtowns: Boomtowns are rapidly growing communities that emerge in response to sudden economic opportunities, often linked to resource discovery or industrial development. These towns typically experience a surge in population and economic activity as people flock to the area seeking jobs and a better life, leading to a unique set of social and economic dynamics.
California Gold Rush: The California Gold Rush was a mass migration of an estimated 300,000 people to California that began in 1848, following the discovery of gold at Sutter's Mill. This event not only sparked significant westward migration but also accelerated the economic development of the American West and had lasting impacts on various aspects of American society, including its economy and infrastructure.
Capital Accumulation: Capital accumulation is the process of acquiring additional assets and resources that can be used to generate economic output. This process is vital for growth as it allows for increased investment in infrastructure, technology, and labor, fostering innovation and productivity. By building up capital, economies can expand their production capabilities, leading to higher standards of living and economic development over time.
Chisholm Trail: The Chisholm Trail was a major cattle drive route in the United States, running from Texas to Kansas, that was primarily used in the late 19th century to transport cattle to railroads for shipping to markets. It played a vital role in the economic motivations for westward expansion by facilitating the cattle industry, which became a significant part of the American economy during this period. The trail also contributed to the development of frontier economies, linking ranchers and farmers with markets and supporting the growth of towns along its route.
Dodge City: Dodge City is a historic frontier town in Kansas that became a significant center for cattle drives and the cattle industry in the late 19th century. Known for its wild west atmosphere, it attracted cowboys, outlaws, and settlers, embodying the rapid economic development and social change typical of frontier economies during that era.
Erie Canal: The Erie Canal is a man-made waterway that connects the Hudson River to Lake Erie, stretching approximately 363 miles across New York State. Completed in 1825, it revolutionized trade and transportation by significantly reducing shipping costs and travel time, thereby fostering economic growth and development in the region.
Frederick Jackson Turner: Frederick Jackson Turner was an American historian best known for his influential essay, 'The Significance of the Frontier in American History,' written in 1893. In it, he argued that the American frontier was crucial in shaping the national character, democracy, and economic growth. His ideas are particularly relevant when examining land acquisition policies and the development of frontier economies in the United States.
Frontier Thesis: The Frontier Thesis, proposed by historian Frederick Jackson Turner in 1893, argues that the American frontier was a key factor in shaping the national character and institutions of the United States. This concept suggests that the experience of westward expansion fostered individualism, democracy, and economic innovation, fundamentally influencing American identity and society.
Homestead Act: The Homestead Act, signed into law in 1862, was a significant piece of legislation that provided 160 acres of public land to settlers for a small fee, provided they would cultivate and improve the land for five years. This act played a crucial role in encouraging westward expansion, promoting agricultural development, and shaping land acquisition policies that transformed the American economy.
Immigration waves: Immigration waves refer to large-scale movements of people from one country or region to another, often occurring during specific time periods due to social, economic, or political factors. These waves typically bring distinct groups of immigrants who contribute to the demographic, cultural, and economic landscape of the destination, significantly shaping frontier economies through labor supply and community formation.
Industrialization: Industrialization refers to the process by which an economy transforms from primarily agrarian to one based on the manufacturing of goods, characterized by the growth of factories, mass production, and technological innovation. This shift significantly affects economic structures, societal dynamics, and urban development.
John Deere: John Deere is a prominent American manufacturer of agricultural machinery, founded in 1837 by blacksmith John Deere. The company is known for its innovative steel plow, which greatly improved farming efficiency and productivity during the development of frontier economies in the United States. Deere's contributions were vital to the agricultural revolution on the frontier, enabling farmers to cultivate previously challenging soil types and expand their operations.
Land Grant Act: The Land Grant Act refers to a series of laws passed by the U.S. Congress that provided federal land to states for the purpose of building colleges, universities, and promoting education. These acts played a significant role in the expansion of education in the United States and facilitated the development of agriculture and technology, which directly impacted both the growth of frontier economies and the expansion of the railroad network.
Mining: Mining refers to the process of extracting valuable minerals or other geological materials from the earth. This activity has played a significant role in the development of frontier economies by providing essential resources that fuel industrial growth, drive economic expansion, and promote settlement in previously uninhabited or sparsely populated regions.
Morrill Land-Grant Act: The Morrill Land-Grant Act, enacted in 1862, was a significant piece of legislation in the United States that provided federal land to states to finance the establishment of colleges focused on agriculture and the mechanical arts. This act aimed to promote higher education and support the economic development of frontier regions, which played a crucial role in shaping the growth of the American economy during a time of rapid expansion and industrialization.
Oklahoma Territory: The Oklahoma Territory was a designated area established in 1890, encompassing much of present-day Oklahoma, where settlers could claim land previously occupied by Native American tribes. It represented a significant chapter in the westward expansion and development of frontier economies, as it provided opportunities for agricultural settlement, commerce, and resource extraction.
Railroad subsidies: Railroad subsidies are financial support provided by the government to railroad companies, aimed at promoting the expansion and development of railway infrastructure. These subsidies were crucial in encouraging investment in the transportation network, especially during the rapid growth of the American economy as frontier areas were being developed. By lowering the costs for railroad companies, these subsidies facilitated the construction of vital rail lines that connected remote regions to major markets and urban centers.
Resource curse: The resource curse refers to the paradox where countries rich in natural resources, like oil and minerals, often experience less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources. This phenomenon occurs because abundant resources can lead to poor governance, corruption, and a lack of diversification in the economy, which hampers long-term growth and development.
Seasonal labor: Seasonal labor refers to the employment of workers during specific periods of the year when demand for labor is at its peak, often tied to agricultural cycles or tourism seasons. This type of labor is essential for industries that experience fluctuations in demand based on the time of year, which is particularly relevant in the development of frontier economies where resources are often tied to the seasons. As new territories were developed, the need for a workforce that could adapt to these changing demands became crucial for economic growth and sustainability.
Transcontinental Railroad: The transcontinental railroad was a massive railway project that connected the eastern United States with the western territories, completed in 1869. This monumental achievement facilitated the movement of people and goods across the continent, significantly impacting westward expansion, economic development, and the exploitation of natural resources.
Urban migration: Urban migration refers to the movement of people from rural areas to urban centers, often in search of better economic opportunities, improved living conditions, and access to services. This phenomenon has significantly impacted the growth and development of frontier economies, as cities become hubs for industry, trade, and innovation, drawing in individuals seeking advancement and a higher quality of life.
Urbanization theory: Urbanization theory explains the processes and patterns of urban growth and the movement of populations from rural to urban areas. This theory explores how economic development, industrialization, and social changes lead to increased urbanization, impacting both the cities and the rural areas that people leave behind. Understanding this theory is essential for grasping the dynamics of frontier economies as they evolve from agrarian societies to more urbanized and industrialized forms.