In class we discussed whether or not railroads was a transportation service that was essential to the development of capitalism in America. We concluded that the railroads were not the sole reason for the rapid expansion of capitalism in America and only contributed around 7% to the GDP during the 19th century growth. However, today the railroads have become indispensable in the transportation of goods throughout the country. The article explains how railroads and unions have avoided a "possibly crippling national strike." In particular, it explains how the last national railroad shutdown in June 1992 costed the economy an estimated $1 billion a day in lost jobs and economic output. Today, with the economy more dependent on consumer spending and international trade, a rail shutdown would be twice as costly at $2 billion a day!
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