The completion of the Erie Canal in 1825 was a revolution in several ways, most of which lead to the success of New York as a trading port city. Known as Clinton’s Folly, referencing the “mistake” of Governor De Witt Clinton for backing such a risky project, the Canal turned out to be the city’s best source of new revenue during the 1800’s.

The first impact of the Erie Canal was the direct bridging of Albany, New York and Buffalo, New York. This direct line improved and minimized two things, the time and money required to transport people or goods from the East to the West and vice versa. By canal boat, the trip from Buffalo to Albany was sped to only a little above an hour, compared to conventional means on road. Shipping cost for services and goods was also reduced to about 90% of the original costs it took pre-Erie Canal era.

With the quick and cheap relocation time came immigrant settlers from the East, who are more than eager to move to New York. With these immigrant settlers also came new goods from their specific culture, generating a new source of trade and revenue.

New jobs revolving around the canal such as boat maintenance were also created, making an even bigger innovation for the immigrants to come. In addition, the business rivalry between the steamboat transportation/shipping and railroads led to an improvement of both businesses as both tried to reel in customers.

With the new canal came the introduction of a huge line of business revenue for New York, leading to an increase of population, a new route of travel and trade, and new occupation improvements. The Erie Canal was known as a huge mistake at the time of its construction but it was proven incredibly wrong after a few years.