What role did the federal government play in the nation’s economic development during industrial revolution?

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The Federal Government actually played a significant role in fostering industrial development within the United States. In some cases, it authored policies favorable to business interests. We can see this in the early history of organized labor, where Labor Unions often had to struggle against the Federal Government, which could usually be found siding with business during strikes and labor disputes.

In addition, one can point towards a second level of collaboration between business and government, by way of incentives. One can see this relationship present with the railroad industries, which the US government had a history of actively subsidizing. Take as an example the creation of the transcontinental railroad via the Union Pacific and Central Pacific Railroad Companies, who were given millions of dollars worth of loans, alongside land grants, courtesy of the federal government.

In short, the Federal Government certainly played a critical role in fostering economic growth, during the history in question.

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