The California Gold Rush

Economical Impacts

          One of the many types of impacts that the California Gold Rush had on California and the rest of the United States was on the economy.  This rush of gold shifted not only the United States, but the position of power in many other countries as well.
          Before the gold rush, the wealth of the people living in California was defined by property. (land, cattle, houses)  As the flakes of gold began to circulate and become a major currency in California, cow hides (the former currency known as California Bank Notes) were replaced.
          The gold inflated the prices of goods and services.  Newcomers to mining were surprised by the costs in California for, not only services and goods, but machinery and tools that would be used to mine were extremely expensive.  Nearly everyone began, at first, wearing the same clothing, eating the same food, and living off of whatever they can.  Over time, many struck rich, only to find that it was barely enough to live only a tiny bit better than before.
          The entertainment industry of California began to flourish.  These industries all grew for one purpose: to separate the miner's hard-earned money from its owner.  Gambling halls were introduced and displayed thousands of dollars of gold and silver on tables.  Saloons offered music, drinking, and a large variety of shows. 
          As if overnight, California's economy had changed.  Prices doubled, nearly tripled.  New types of entertainment rose to strip the miners of their gold.  More generous entertainment industries sprouted, but still with the same goal. 
          Through the California Gold Rush, many people became extremely rich.  This boosted the United States' wealth and also helped raise funds for the Union war efforts in the East.
          The United States was aided greatly by the California Gold Rush.  Wealth boosted, and along with wealth comes power.  The United States of America would prosper from a simple accident in a small river in Colluma Valley.