How did the War of 1812 affect economic development in the postwar period?

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At the end of the War of 1812, a significant boom occurred in the growth of industrialization, and thus the economy, throughout the United States. Prior to the war of 1812, over 90% of the country was agriculturally and rurally-based. However, the 25 years following the end of the War of 1812 resulted in an ever-increasing change towards an industrialized society. During this time period, the United States experienced the development of steamboats, canals, and railroads, which significantly changed how transportation occurred. Previously, transportation of goods, mail, and persons relied mainly on travel by foot and horse-drawn carriage. With the development of steamboats, canals, and railroads, entirely new and significantly faster forms of transportation became available. Goods, people, and communication were able to cross the country at record speeds.

Following this expansion of transportation came the first real growth of cities, as markets expanded for industrial and agricultural...

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