Moved goods and people quicker
railroads boosted the economy the same way as the internet: the idea of globalization. Making travel easier, products quicker to transport, and so on, it brought the country together. As the supply for medicine, food, and other products increased, the demand decreased; and so the economy was "boosted" by the speed and efficiency of railroad travel/shipments.
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Before the railroad, migrating west was a long dangerous journey that many people didn't want to undertake.The railroads were responsible for many towns coming into existence.That made going west a lot more appealing to many people.And when they went west they took ideas and equipment to start businesses to earn a living.As they created jobs even more people headed for the wide open spaces.You have to remember the east was crowded and established.But the west was wide open for the taking to men and women willing to put forth the effort to call it home.