The federal government gave land and made loans to the railroad companies. Why was the government so eager to promote the growth of railroads?
Railroads provided people, business, and infrastructure to the western US. The railroads connected isolated towns, and created a huge number of jobs for people. In fact, entire cities (like Chicago (which was known for its stockyards) and Minneapolis (for its grain industry)) began to specialize in one industry which they would sell to other communities via the railroads which connected them. Other cities were simply formed around junctions of railroad lines.
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