Chisholm Trail: During the height of cattle drives, the Chisholm Trail provided a means by which ranchers could move cattle from ranches to railroad lines. This allowed ranchers to sell cattle in markets in the east where they could make greater profits. This trail stretched from southern Texas to railroad hubs in Abilene, Kansas. This trail passed through numerous smaller cities and towns in Texas, Oklahoma, and Kansas on its way to Abilene.
Increased demand for beef and beef products along the Eastern coast and in the growing cities of the Midwest, made large-scale cattle ranching profitable. Despite the cost of moving large numbers of cattle, ranchers and their employees still made a profit. Their price incentive was the high price of beef in the urban areas where cattle were shipped. If local beef prices had been competitive, then ranchers would have lacked the incentive to move cattle across Texas to get to railway hubs for shipping.
Vocabulary: price incentives, profitable, competitive, railway hubs
Chicago, Illinois: Chicago was first established as a city in 1837 and grew rapidly as a transportation and communication hub. It was a railroad and telegraph and telephone center, and grew rapidly as an industrial center at the turn of the century. The city had numerous stockyards, meatpacking plants, and railroad related factories, all of which needed laborers. It became a center of labor unrest too, since workers began demanding safer work conditions and fairer working hours and salaries, and owners resisted making such improvements. Department stores and catalog centers developed here, like Sears and Montgomery Ward, and sports stadiums were built to accommodate local teams. Because of huge numbers of immigrant laborers working in harsh conditions, many social problems arose related to the rapid population growth of the area. Jane Addams helped start the settlement house movement in the U.S. when sh
When trade occurs in a truly voluntary exchange, both parties benefit. The buyer and the seller of the service or good both gain something from the exchange. Specifically, in a voluntary exchange, buyers receive a good or service that they want, while the seller receives a payment for that good or service. Once this exchange is replicated on a larger scale, you have a working economy. Thus, if both parties are acting in mutual self-interest, continued trade promotes additional economic activity. One example in historical context that illustrates this concept is the Panama Canal. This canal made trade between countries easier, as ships no longer had to make the treacherous journey around the southernmost tip of South America. It increased the speed in which goods could travel, and made shipping goods more lucrative. While the Canal itself took almost 40 years to turn a profit, demand for passing through the Canal continues to increase, so much so that shipping companies now pay an additional fee to move through it more quickly.
Vocabulary: trade, voluntary exchange, good, service, shipping