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🇺🇸AP US History Unit 6 Review

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6.2 Westward Expansion: Economic Development

🇺🇸AP US History
Unit 6 Review

6.2 Westward Expansion: Economic Development

Written by the Fiveable Content Team • Last updated September 2025
Verified for the 2026 exam
Verified for the 2026 examWritten by the Fiveable Content Team • Last updated September 2025
🇺🇸AP US History
Unit & Topic Study Guides
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Government Support for Western Development

The federal government played a crucial role in promoting westward expansion through policies that subsidized transportation and communication systems, opening new markets across North America. This approach represented a revival of Henry Clay's "American System" promoting internal improvements, which gained new life under Republican leadership after the Civil War.

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The Transcontinental Railroad, image courtesy of History.com
  • Pacific Railway Act (1862): Provided massive land grants and

financial loans to railroad companies

  • Union Pacific Railroad built westward from Omaha, Nebraska
  • Central Pacific Railroad built eastward from Sacramento, California
  • Government granted railroad companies 10 square miles of public land for each mile of track laid
  • Companies received additional financial subsidies through government bonds
  • Transcontinental Railroad (completed 1869):
    • Dramatically reduced coast-to-coast travel time from months to days
    • Created economic corridors connecting Eastern markets with Western resources
    • Golden spike ceremony at Promontory Summit, Utah marked completion
    • Stimulated related industries including steel, coal, and lumber production
    • Established new towns and commercial centers along railway routes
  • Homestead Act (1862):
    • Offered 160 acres of public land free to settlers who lived on and improved the land for five years
    • Over 375,000 families received land titles between 1862-1900, settling approximately 65 million acres
    • Supplemented by other land policies including the Timber Culture Act (1873) and Desert Land Act (1877)
    • Created incentives for agricultural development of the Great Plains
  • Telegraph and Communication Networks:
    • Government supported expansion of telegraph lines alongside railroads
    • Enabled rapid communication between East and West coasts
    • Facilitated integration of national markets and financial systems
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Resource Extraction and Economic Development

The discovery of mineral resources in western territories, combined with improved transportation networks, created new centers of economic activity and population growth. Corporate interests gradually displaced individual prospectors as extraction industries became more capital-intensive.

  • Mining Industry Development:
    • Gold and silver discoveries triggered migration to Colorado, Nevada, Montana, and Idaho
    • Comstock Lode in Nevada (1859) yielded over $300 million in silver
    • Initial individual prospecting gave way to corporate mining operations requiring significant capital investment
    • Mining techniques evolved from placer mining to hydraulic mining and deep shaft mining
    • Mining boomtowns experienced rapid growth and decline cycles tied to resource extraction
    • Created diverse workforce including immigrants from China, Mexico, and Europe
  • Timber Industry:
    • Extensive logging operations in the Pacific Northwest and Great Lakes regions
    • Supplied railroad ties, mine supports, and building materials for expanding settlements
    • Facilitated by railroad access to previously remote forest regions
    • Led to significant deforestation and later conservation movements
  • Cattle Industry Expansion:
    • Open range cattle ranching dominated plains from Texas to Montana
    • Texas longhorn cattle driven north to railroad connections (cattle towns)
    • "Long drives" followed established trails: Chisholm Trail, Western Trail, Goodnight-Loving Trail
    • Diverse workforce of cowboys included significant numbers of Black and Mexican American herders
    • Joseph McCoy established Abilene, Kansas as first major cattle shipping center (1867)
    • Chicago emerged as meatpacking center with companies like Armour and Swift
    • Industry transformed by refrigerated rail cars (1880s) allowing shipment of dressed meat
    • Rise of cattle ranching led to conflicts with farmers and eventual end of open range era

Agricultural Development and Mechanization

Improvements in agricultural technology enabled significant increases in farm productivity while opening previously unusable lands to cultivation. However, these changes also created economic challenges for small farmers.

  • Technological Innovations:
    • Steel plow (John Deere) enabled breaking of tough prairie sod
    • Mechanical reapers and threshers (McCormick, Case) dramatically increased harvest efficiency
    • Barbed wire (Joseph Glidden, 1874) allowed effective and affordable fencing of vast areas
    • Wind-powered pumps accessed groundwater for irrigation and livestock
    • Dry farming techniques developed for semi-arid regions
    • These innovations collectively increased production while reducing labor requirements
  • Changes in Agricultural Production:
    • Shift from subsistence farming to market-oriented commercial agriculture
    • Specialization in cash crops based on regional advantages
    • Great Plains became major wheat-producing region ("breadbasket")
    • Food prices declined significantly as production increased
    • Farm size grew as mechanization made larger operations more efficient
    • Increasing capital requirements for modern equipment created financial pressures

Farmer Responses to Economic Challenges

As agriculture became more integrated into national markets, farmers faced new economic pressures including high railroad shipping rates, expensive farm equipment, and falling crop prices. Many farmers responded by forming cooperative organizations to increase their economic and political power.

  • Economic Challenges for Farmers:
    • Railroads charged higher rates for short hauls affecting rural shippers
    • Grain elevator and warehouse operators often set unfavorable terms
    • Crop prices fell as production increased and global competition grew
    • Rising debt from purchasing equipment and land
    • Deflationary monetary policies favored creditors over debtors
  • The Grange Movement:
    • National Grange of the Patrons of Husbandry founded 1867 by Oliver H. Kelley
    • Grew to over 800,000 members by 1875
    • Created social community among isolated rural families
    • Established cooperative purchasing associations and grain elevators
    • Advocated for "Granger Laws" regulating railroad and warehouse rates
    • Supreme Court initially upheld these regulations in Munn v. Illinois (1877)
  • Farmers' Alliances:
    • Southern Farmers' Alliance and Colored Farmers' Alliance (1880s)
    • Northern/Northwestern Farmers' Alliance
    • Created cooperative exchanges for buying supplies and marketing crops
    • Developed educational programs on scientific farming methods
    • Lobbied for political reforms including railroad regulation
    • Established "sub-treasury" plan to provide low-interest farm loans
  • Political Activism:
    • Farmers' organizations increasingly turned to political action
    • Ocala Demands (1890) and Omaha Platform (1892) outlined political agenda
    • Called for inflation through free silver coinage to raise crop prices
    • Advocated for graduated income tax and direct election of senators
    • These movements laid groundwork for Populist Party formation

Long-Term Impact of Western Economic Development

The economic transformation of the West had profound and lasting effects on American society, creating new patterns of settlement, wealth distribution, and economic activity while generating both opportunities and challenges.

  • Transformation of the West:
    • Settlement patterns followed railroad lines and resource locations
    • Diverse populations including European immigrants, African Americans, Asian immigrants, and Hispanic communities
    • Development of distinctive regional economies based on local resources
    • Environmental changes through resource extraction, agriculture, and settlement
  • Integration of National Markets:
    • Western resources supplied Eastern manufacturing centers
    • Agricultural products moved efficiently to urban markets
    • Financial systems increasingly connected through national banking networks
    • Regional economic specialization increased national interdependence
  • Legacy of Western Development:
    • Created foundation for America's rise as industrial and agricultural power
    • Established infrastructure networks still in use today
    • Reshaped relationships between government, business, and citizens
    • Generated tensions between corporate power and democratic ideals that would fuel Progressive Era reforms

Frequently Asked Questions

What is westward expansion and why did it happen after 1877?

Westward expansion = the rapid settlement and economic development of the Great Plains, Rockies, and Far West after the Civil War—creating farms, mining towns, rail hubs, and new markets. After 1877 it accelerated because of several linked forces from the CED: transcontinental and feeder railroads (Union Pacific, Central Pacific + massive land grants/subsidies) tied western producers to national markets; agricultural mechanization (McCormick reaper), barbed wire, and bonanza farms made large-scale farming viable; major mineral strikes (Comstock Lode) and cattle trails (Chisholm Trail) drew people and investment; and federal policies (Homestead Act’s ongoing claims, railroad subsidies, and pro-settlement laws) encouraged migration. Farmers’ responses (Grange, Farmers’ Alliance, Populist Party) show economic effects and political backlash. On the AP exam, you should connect these causes to effects (new communities, market integration, and agrarian unrest) per Learning Objective B. Review the Topic 6.2 study guide (https://library.fiveable.me/ap-us-history/unit-6/westward-expansion-economic-development-1865-1898/study-guide/IyGGrUeyJLooDzn8Y5OT) and practice questions (https://library.fiveable.me/practice/ap-us-history).

How did new farming machines help the economy grow in the West?

New farming machines—like the McCormick reaper, steel plows, and mechanized threshers—massively raised productivity on Western farms. Mechanization let fewer workers harvest far more land, which created large bonanza farms and pumped more grain into national and global markets. That greater supply helped lower food prices, which expanded urban markets and freed labor for industry. Farmers also became more tied to railroads to ship crops, increasing regional commercial connections and prompting cooperative responses (the Grange, Farmers' Alliance) when markets consolidated and rates rose. On the AP exam, this appears under KC-6.1 (mechanization → higher output, falling prices) and Topic 6.2 (railroads and new markets). For a focused review check the Topic 6.2 study guide (https://library.fiveable.me/ap-us-history/unit-6/westward-expansion-economic-development-1865-1898/study-guide/IyGGrUeyJLooDzn8Y5OT) and practice more with Fiveable’s AP problems (https://library.fiveable.me/practice/ap-us-history).

Why did food prices go down when farmers started using better technology?

When farmers adopted mechanization (like the McCormick reaper) and improved rail access, they produced a lot more grain per worker and per acre. That big rise in supply—plus national markets created by transcontinental railroads—meant more food was available for the same or lower cost to produce, so market prices fell. Lower marginal costs and competition from “bonanza” farms drove prices down further. The result: deflationary pressure that hurt many small farmers’ incomes, prompting cooperative responses (Grange, Farmers’ Alliance) and political action (Populist demands like bimetallism). This matches the CED point (KC-6.1.III.A) linking mechanization to declining food prices. For more on these links and exam-focused review, see the Topic 6.2 study guide (https://library.fiveable.me/ap-us-history/unit-6/westward-expansion-economic-development-1865-1898/study-guide/IyGGrUeyJLooDzn8Y5OT) and try practice questions (https://library.fiveable.me/practice/ap-us-history).

What were farmer cooperatives and why did farmers create them?

Farmer cooperatives were organizations where farmers pooled resources to buy supplies, market crops, and sometimes store or process grain together—examples include Grange cooperatives and later Farmers’ Alliance cooperatives. They formed because mechanization and larger commercial farms increased production but drove down crop prices, while railroads and grain middlemen (elevators, brokers) consolidated market power and charged high rates. By banding together, farmers gained bulk-buying discounts (seeds, machinery), negotiated better railroad rates, reduced dependence on exploitative intermediaries, and tried to stabilize prices and credit access. Cooperatives were a key grassroots response in the Gilded Age to economic vulnerability on the Plains and fed into political efforts like the Populist movement. For more on this topic, see the Unit 6 study guide (https://library.fiveable.me/ap-us-history/unit-6/westward-expansion-economic-development-1865-1898/study-guide/IyGGrUeyJLooDzn8Y5OT) and practice questions (https://library.fiveable.me/practice/ap-us-history).

I'm confused about how railroads helped settle the West - can someone explain?

Railroads were the single biggest driver of Western settlement after 1865. Building transcontinental lines (Union Pacific, Central Pacific) physically connected the East to the Plains and West, making long trips faster and cheaper so farmers, miners, and entrepreneurs could move there. Rail companies got massive land grants and government subsidies, then sold land and advertised settlements—which drew immigrants and created new towns at stops. Railroads opened markets: farmers could ship wheat and cattle to eastern cities, enabling bonanza farms and commercial agriculture (with mechanization like the McCormick reaper), and cattle drives used railheads (e.g., Chisholm Trail) to reach stock markets. Rails also spurred related industries (timber, mining) and local banks. On the AP exam this shows up in KC-6.2 (economic growth, land grants) and can be used in MCQs, short answers, or a DBQ/LEQ about causes/effects of westward expansion. For the topic study guide, see Fiveable’s unit 6 study guide (https://library.fiveable.me/ap-us-history/unit-6/westward-expansion-economic-development-1865-1898/study-guide/IyGGrUeyJLooDzn8Y5OT). For practice, try Fiveable’s APUSH problems (https://library.fiveable.me/practice/ap-us-history).

What's the difference between the transcontinental railroad and regular railroads?

A regular railroad is any local or regional line that connects towns, farms, and cities—built by private companies to move people and goods in a specific area. A transcontinental railroad is a single, coast-to-coast line (or a linked system) that connects the Atlantic and Pacific—like the Union Pacific/Central Pacific project completed in 1869. The key differences: scale (cross-country vs. local), purpose (open national markets and speed up westward settlement vs. regional transport), and funding/support (transcontinentals got massive federal aid—railroad land grants and subsidies—because the government wanted national integration). Transcontinentals reshaped the economy: created new markets, encouraged bonanza farms and mechanized agriculture, and helped create western towns (CED KC-6.2.II.A). For AP review, focus on causes/effects (government subsidies, Homestead Act, land grants)—see the Topic 6.2 study guide (https://library.fiveable.me/ap-us-history/unit-6/westward-expansion-economic-development-1865-1898/study-guide/IyGGrUeyJLooDzn8Y5OT). Practice questions are at (https://library.fiveable.me/practice/ap-us-history).

How did government subsidies help open up western markets after the Civil War?

Government subsidies—mainly land grants, low-interest loans, and postal/telegraph contracts—lowered the cost and risk of building transcontinental railroads and communication lines, which opened western markets after the Civil War. Laws like the Pacific Railway Acts gave huge swaths of alternating public land to rail companies (and loans to build track), so companies could sell land, raise capital, and lay track faster. Rail connections plus telegraph lines linked Great Plains farmers and bonanza farms to eastern processors and global markets, drove mechanization (McCormick reaper), and helped prices fall by expanding supply. The Homestead Act also subsidized settlement by giving 160-acre plots, creating producers and local demand that railroads served. These policies (railroad land grants, Homestead Act) are exactly the CED’s KC-6.1.I.A and KC-6.2.II.A causes of western economic growth. For more review, see the Topic 6.2 study guide (https://library.fiveable.me/ap-us-history/unit-6/westward-expansion-economic-development-1865-1898/study-guide/IyGGrUeyJLooDzn8Y5OT) and practice questions (https://library.fiveable.me/practice/ap-us-history).

What caused all the new towns and cities to form in the West between 1877-1898?

New towns and cities sprang up in the West (1877–1898) because economic opportunity and government policy made settlement profitable and practical. Big drivers: transcontinental railroads (Union Pacific, Central Pacific) plus massive railroad land grants opened markets and made transport cheap (KC-6.2.II.A). Federal policies like the Homestead Act gave settlers land; discovery of mineral resources (Comstock Lode) and bonanza farms attracted miners, farmers, and investors. Technological changes—McCormick reaper, agricultural mechanization, barbed wire—let large-scale farming and ranching expand, while trails like the Chisholm connected cattle to railheads. Farmers’ responses (Grange, Farmers’ Alliance) show growing commercial agriculture and market dependence (KC-6.1.III.A/B). For AP prep, this ties directly to Topic 6.2 Learning Objective B and the CED keywords; review the Topic 6.2 study guide (https://library.fiveable.me/ap-us-history/unit-6/westward-expansion-economic-development-1865-1898/study-guide/IyGGrUeyJLooDzn8Y5OT) and practice questions (https://library.fiveable.me/practice/ap-us-history).

Why were farmers so dependent on railroads and how did that hurt them?

Farmers depended on railroads because rail lines were the only practical way to move bulky grain and livestock from Plains bonanza farms to national and global markets after 1865. Railroads got huge federal land grants and built transcontinental links (Union Pacific, Central Pacific), so in many regions they were local monopolies. That dependence hurt farmers: rail companies charged high and often discriminatory freight rates (long-haul vs. short-haul, secret rebates for big shippers), raised costs for equipment and fertilizer, and delayed shipments—cutting farm profits already squeezed by falling crop prices from mechanization and overproduction. Lacking competition and credit, many farmers went into debt and lost land, which spurred cooperatives, the Grange, Farmers’ Alliance, and later the Populist movement pushing reforms (rail regulation, bimetallism). For AP review, this fits Topic 6.2 (westward expansion, railroad land grants, Grange/Farmers’ Alliance); see the Fiveable study guide for Topic 6.2 (https://library.fiveable.me/ap-us-history/unit-6/westward-expansion-economic-development-1865-1898/study-guide/IyGGrUeyJLooDzn8Y5OT) and practice questions (https://library.fiveable.me/practice/ap-us-history).

What mineral discoveries helped drive westward expansion in the late 1800s?

The big drivers were discoveries of gold and silver, plus major copper and other metal finds. Key examples: the Comstock Lode (silver, Nevada, 1859) sparked a rush and new towns; Black Hills and other gold strikes in the 1870s–1880s (Dakotas) pulled settlers and miners west; rich copper deposits (e.g., Butte, Montana) fueled long-term mining and industrial growth; and lead, zinc, coal, and iron deposits supported mining towns and railroad expansion. Those mineral booms created markets and capital that encouraged transcontinental railroads, railroad land grants, and new commercial centers—exactly the processes the CED links to Westward Expansion (Topic 6.2). For AP prep, you should connect specific discoveries (Comstock Lode, Black Hills, Butte) to causes/effects on settlement and railroads for short answers or LEQs. Review the Topic 6.2 study guide (https://library.fiveable.me/ap-us-history/unit-6/westward-expansion-economic-development-1865-1898/study-guide/IyGGrUeyJLooDzn8Y5OT) and practice questions (https://library.fiveable.me/practice/ap-us-history).

How do I write a DBQ essay about the economic effects of westward expansion?

Start with a clear, specific thesis that answers how westward expansion shaped the economy (e.g., railroads, land policy, mining/agriculture changed markets and power). In your 15-minute reading, group the DBQ documents into 3–4 analytic categories (transportation/railroads and land grants; federal policy like the Homestead Act; agricultural mechanization and bonanza farms; miners/mining towns). Use at least four documents to support those categories, and explain POV or purpose for two (e.g., a railroad company brochure vs. a farmer’s Grange petition). Bring in at least one outside fact (McCormick reaper, barbed wire, Chisholm Trail, or Farmers’ Alliance/Populist reaction) to earn the extra evidence point. Contextualize with post-Civil War industrial growth and government subsidies for transport/communication. End with a short synthesis or complexity statement (multiple causes, varied winners/losers—commercial centers vs. small farmers). For topic review see the Fiveable study guide (https://library.fiveable.me/ap-us-history/unit-6/westward-expansion-economic-development-1865-1898/study-guide/IyGGrUeyJLooDzn8Y5OT); for unit review see (https://library.fiveable.me/ap-us-history/unit-6). Practice DBQ skills with 1000+ questions (https://library.fiveable.me/practice/ap-us-history).

Did government policies actually help or hurt western farmers in the long run?

Short answer: government policies both helped and hurt western farmers in the long run. How they helped: laws and subsidies opened the West—the Homestead Act (160 acres free if improved), railroad land grants, and federal support for telegraph/transportation created markets and made large-scale farming possible. Mechanization (McCormick reaper, barbed wire) plus those policies increased production and settlement (bonanza farms). How they hurt: those same policies tied farmers to national markets and railroads that charged high rates; overproduction and mechanization drove down crop prices. Political responses—the Grange, Farmers’ Alliance, and Populist Party—show farmers’ long-run grievances (they pushed for bimetallism/Free Silver to inflate prices). So policy opened opportunity but also produced dependence and price vulnerability. For AP prep: you can use these cause–effect and continuity/change links on DBQs/LEQs (Unit 6.2). Review the topic guide (https://library.fiveable.me/ap-us-history/unit-6/westward-expansion-economic-development-1865-1898/study-guide/IyGGrUeyJLooDzn8Y5OT) and practice questions (https://library.fiveable.me/practice/ap-us-history).

What were the main economic consequences of settling the western territories?

Settling the West transformed the U.S. economy by linking new lands, resources, and markets to national industry. Key causes were transcontinental railroads (Union Pacific/Central Pacific + land grants), the Homestead Act, and mineral strikes (Comstock Lode). Consequences: rapid market integration and regional specialization (Great Plains → grain; West → mining, timber, cattle), growth of commercial agriculture through mechanization (McCormick reaper), bonanza farms, and falling food prices. Government subsidies and railroad expansion opened markets but also created dependence on rail lines and volatile boom-and-bust cycles for town economies. Farmers reacted with cooperatives, the Grange, and the Farmers’ Alliance—political pressure that fed the Populist movement and demands like bimetallism (Free Silver). The era also produced new commercial centers and labor/migration shifts (Chisholm Trail cattle drives). For AP questions, be ready to explain causes vs. effects and use examples in SAQs/LEQs or DBQs. For a focused review, see the Topic 6.2 study guide (https://library.fiveable.me/ap-us-history/unit-6/westward-expansion-economic-development-1865-1898/study-guide/IyGGrUeyJLooDzn8Y5OT) and practice questions (https://library.fiveable.me/practice/ap-us-history).

How did mechanization change farming and what problems did it create for farmers?

Mechanization—things like the McCormick reaper, improved plows, threshers, and rail access—made farming far more productive: one farmer could cultivate much more land, helping create large bonanza farms and boosting national grain exports. That productivity lowered food prices (a key KC-6.1.III.A effect) and tied farmers into national and global markets via railroads and telegraph (KC-6.1.I.A, transcontinental railroad). But it also caused problems: overproduction drove prices down, hurting small farmers’ incomes; mechanization and consolidation favored wealthy landowners and banks, increasing farm debt; dependence on railroads and monopolistic grain-buying agents left farmers vulnerable to high freight rates and price manipulation; and higher costs for machines and credit pushed many into tenancy. Those pressures spurred collective responses—the Grange, Farmers’ Alliance, cooperatives, and later Populism (KC-6.1.III.B). For quick review, see the Topic 6.2 study guide (https://library.fiveable.me/ap-us-history/unit-6/westward-expansion-economic-development-1865-1898/study-guide/IyGGrUeyJLooDzn8Y5OT) and try practice problems (https://library.fiveable.me/practice/ap-us-history).