The steamboat, invented in 1807 by Robert Fulton, with the first one constructed in America called the ''Clermont'', had a major effect on the economy by 1820s. The steamboat enabled goods to be transported quickly and cheaply over water. Canals were then built. The most important canal was the Erie Canal, finished in 1825, to connect the Hudson River and New York City with the Great Lakes. Spectacular free market success enabled our nation's economy to grow immensely. The Erie Canal allowed New York City to become the financial center and biggest city in the United States. That canal cost $7 million but was soon generating profits of $3 million per year! | The steamboat, invented in 1807 by Robert Fulton, with the first one constructed in America called the ''Clermont'', had a major effect on the economy by 1820s. The steamboat enabled goods to be transported quickly and cheaply over water. Canals were then built. The most important canal was the Erie Canal, finished in 1825, to connect the Hudson River and New York City with the Great Lakes. Spectacular free market success enabled our nation's economy to grow immensely. The Erie Canal allowed New York City to become the financial center and biggest city in the United States. That canal cost $7 million but was soon generating profits of $3 million per year! |