Which of the following led to overbuilding of railroads in the 1860's and 1870's?
A)Reduction of taxes on railroads by the federal government
B)The success of railroads in Europe
C)The availability of financing due to public optimism
D)The low cost of labor to construct railroads
E)Increases in regulated freight rates by the Interstate commerce Commission

Question

Quizplus · Accepted Answer

The availability of financing due to public optimism led to overbuilding of railroads in the 1860's and 1870's, as there was a widespread belief that railroads would bring economic prosperity and investing in them would yield high returns. This resulted in competition between railroad companies and led to the construction of more railroads than were needed, resulting in overbuilding.

Which of the Following Led to Overbuilding of Railroads in the 1860's