The Erie Canal had many positive effects. It opened up trade in the Midwest, as farmers now had a cheaper way to get their goods to markets. The canal put many people to work, most notably Irish immigrants. It also gave Albany and Buffalo an economic boost. The Erie Canal made New York City a terminus for Western goods moving East in the days before railroad travel became popular.
As a result of the canal, the United States built more canals in order to unite the West with the East. By allowing farmers to move goods cheaply to the East, it improved the nation's economy and it also allowed more settlers to move West, as it was cheaper to move via water than it was to buy a wagon and outfit it with enough goods to last for a few months. The Erie Canal also made infrastructure a national issue, as politicians debated whether the federal government should be in the business of internal improvements.
Completed in 1825, the Erie Canal helped transform New York City into the economic center that it continues to be today. The canal links the Great Lakes and Buffalo to New York City and the Atlantic via the Hudson River, crossing the state through Albany (the capital) and linking the East Coast with the Midwest. This connection also spurred agricultural and commercial growth, allowing for faster and cheaper transportation of goods like timber, furs, and agricultural goods because the Appalachian Mountains no longer presented an obstacle. After completion of the canal, New York City surpassed Philadelphia as the nation's banking and commercial center, and the city's population had quadrupled by 1850. Farmers also benefited from cheaper transportation costs and increased profits, allowing them to buy more consumer goods, thus furthering economic growth.
Unfortunately not everyone benefited from the building of the Erie Canal. Many areas through which the canal was built were Native American lands. The federal government increasingly forced Native Americans to relocate, often to reservations, in order to further the development of these areas.
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