The Economic Turmoil of Turnpikes
Although turnpikes were initially created to help deal with the difficulties of funding roads, they wound up having more economic shortcomings than they were thought to have at first. In fact, turnpikes were very unprofitable ventures in terms of investment. In Pennsylvania, for example, the state held $2 million in terms of turnpike stocks, meaning that they invested that quantity into the roads that were constructed in the state. However, Pennsylvania only received annual dividends of $5000 from the turnpike. The turnpikes were, as it turned out, meager sources of profit. The only major exception to this general pattern was the National Road. However, for the most part, turnpikes were such bad investments that in the end, they were eventually reverted back to public control as they were abandoned by the firms that constructed them.
Economic Benefits of Turnpikes and Improved Roads in the United States
Although there were immediate economic shortcomings when it came to turnpikes, there were three major benefits that compensated for these losses:
1. Lowered Transportation Costs |
2. Stimulated Commerce |
3. Increased Land Values |
National Benefits
Due to better roads and turnpikes, interstate travel became significantly easier. Not only did this have economic implications, but it also had social implications. Due to the implementation of new roads and turnpikes, more settlers were able to travel to the West, which further added to the general pattern of dispersion that was going on in the United States in the 18th and 19th centuries. By making westward routes smoother, easier to follow, and less dangerous, the United States indirectly paved the way for greater westward relocation while simultaneously increasing commercial ties between the West and Northeast.
Sources: 4