How did the telegraph affect the economy?

In 1844, the first telegraph message was sent, and by 1853, the only state east of the Mississippi that didn't have telegraph communications was Florida. By 1861, the entire country was connected through telegraph. By making long-distance communication faster and less expensive, the telegraph increased the efficiency and size of markets, facilitating the Industrial Revolution and accelerating the growth of the American economy.

In addition, the telegraph helped corporations develop the ability to coordinate multiple functions at the same time, leading to monopolies with vertically integrated businesses. Vertically integrated firms were able to control the entire supply chain along a business's production process; for example, Carnegie steel was one of the first vertically integrated firms, and the company not only controlled the manufacturing of steel but also owned the mines that produced the iron and the ships that transported the steel to markets. The telegraph facilitated communications among the different divisions of the business, leading to larger companies that were able to control many aspects of a product's production process.