How did railroads contribute to industrialization? How did they affect the US economy?

The railway allowed people to flock to cities and allowed people to travel newer places as well. Business boomed due to the railway with the mass increase of people and goods. All in all, the railway was a major success in all aspects of the Industrial Revolution especially in time and distance.

The advent of a rail network expanded the available markets for goods. ... That had a two-fold effect on the economy: the sellers found new markets in which to sell their goods and individuals who lived on the frontier were able to obtain goods that had previously been unavailable or extremely difficult to get.

Furthermore, The first transcontinental line was established in 1869. Eventually, railways lowered the cost of transporting many kinds of goods across great distances. Busy transport links increased the growth of cities. The transportation system helped to build an industrial economy on a national scale.

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