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The Erie Canal Analysis

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The shift from a subsistence economy into an industrialized, market-oriented economy was also made possible by a “transportation revolution” that was encouraged by state governments that provided economic aid for such internal improvements as turnpikes, canals, and railroads. Improvements in transportation thanks to national roads lowered costs and linked farmers to markets. It had used to take 90 days to go from Louisville to New Orleans before. Improved water transportation thanks to steamboats dramatically increased the speed and lowered the expense of commerce (transportation cost decreased 90%) River traffic capacity increased 100 fold from 1820-1860 because of innovation of flat-bottom boats. The Erie Canal is the most successful example

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