The construction of an extensive rail network across the country facilitated the transportation of goods and people on a scale never seen before, creating new markets for businesses and allowing them to expand their operations.
By the end of the 1800s, the United States had the most extensive rail system in the world, stretching over 193,000 miles of track and revolutionizing the way people lived, worked, and traded.
In addition to the railroad industry, other factors that contributed to the growth of big business in the 19th century included:
* Technological innovations: The Industrial Revolution brought about numerous technological advancements that increased efficiency and productivity in manufacturing, such as the steam engine, the cotton gin, and the telegraph. These innovations enabled businesses to produce more goods at lower costs, which in turn fueled their expansion.
* Government policies: Government policies such as high tariffs and lax antitrust laws encouraged the growth of big business. Tariffs protected domestic industries from foreign competition, allowing them to grow without fear of being undercut by cheaper imports. Lax antitrust laws allowed businesses to merge and form monopolies, further increasing their market power.
* Investment banking: The emergence of investment banking firms such as J.P. Morgan & Co. provided the financial capital that big businesses needed to expand. These firms helped to raise money from investors and underwrite the issuance of stocks and bonds, allowing companies to finance their growth plans.