What was a major effect of canals on the United States economy?

What was a major effect of canals on the United States economy?

• A. Increased tariffs on imports.
• B. Increased distance to markets.
• C. Reduced transportation costs and the time to ship goods.
• D. Decreased trade.

Answer: (C)

Canals lowered the cost and time of moving goods, transforming the U.S. economy. The Erie Canal and other waterways created a cheap, efficient route from the interior to the Atlantic, allowing bulky items like grain, timber, and coal to be shipped in large quantities at much lower expense than overland routes. This makes farms farther inland viable suppliers for eastern markets and spurs growth of towns along canal routes, boosting trade and the development of industry across regions. Tariffs are policy choices and not a direct result of canals, the distance to markets didn’t increase because of canals, and overall trade didn’t decrease—canals generally expanded commerce by making transportation cheaper and faster.

Canals lowered the cost and time of moving goods, transforming the U.S. economy. The Erie Canal and other waterways created a cheap, efficient route from the interior to the Atlantic, allowing bulky items like grain, timber, and coal to be shipped in large quantities at much lower expense than overland routes. This makes farms farther inland viable suppliers for eastern markets and spurs growth of towns along canal routes, boosting trade and the development of industry across regions. Tariffs are policy choices and not a direct result of canals, the distance to markets didn’t increase because of canals, and overall trade didn’t decrease—canals generally expanded commerce by making transportation cheaper and faster.