The study of Reconstruction (1865-1877) usually focuses on race relations and how the South was reincorporated into the Union. The end of the Civil War also allowed the United States to begin to unleash its enormous economic potential.

The completion of the Transcontinental Railroad in 1869 signaled that the entire continental United States was open for development. People could ride the ever-expanding railroads to move West. There they could use the Homestead Act to get land to start a farm or choose to become a cattle-rancher, dig for gold, or find some other means to seek their fortune.

People could also ride the rails to move into the growing cities. There, factories operated 24 hours a day cranking out goods to load back on the railroad cars to sell to the whole country and beyond. By the end of the 19th century, the United States would become the largest industrial nation in the world. The foundations for that development were literally laid, track-by-track, during Reconstruction.

Some Groups Left Behind

This lesson will explore the impact of this railroad boom. Economic change did not benefit everyone equally. In particular, African-American farmers and American Indians were victims of the new economy as well as racial discrimination.

Moreover, the economy was not free from the "boom" and "bust" cycle that affects all free enterprise economies. The rapid rise of the railroads eventually produced a massive (but temporary) collapse. In 1873, the United States began, what was up to then, the worst depression in its history, lasting until 1879. It was far worse than the depressions that followed the Panics of 1819 and 1837. Some economists continue to label it the worst depression in U.S. history, more so than the Great Depression of the 1930s.

The country was changing into an industrial giant during Reconstruction. This process was painful for many.