The Panama Canal boosted the US as a world power in trade, engineering, and finance

The century of the Panama Canal

The Panama Canal connects the Atlantic and Pacific Oceans through a 51-mile route that transformed global shipping when it opened in 1914. This breakdown covers how it was built, the workers behind its construction, and why its future may be challenged by climate and competition.

The US finished what the French had started with Panama's canal

For about two decades, Suez Canal-builder and Frenchman Ferdinand de Lesseps led the project, but financial troubles forced it into the hands of the US, who completed it in 1914. This timeline, made to accompany the definitive PBS American Experience documentary about the canal, highlights major moments in its construction.

The US handed control of the canal back to Panama in 1999

This was the result of two treaties signed during President Jimmy Carter's presidency, one shifting control to Panama and the other declaring the canal zone neutral. In recent years, US officials have suggested the US may retake control. Experts agree that the only viable way would be through military force.

Watch the Panama Canal's lock system lift a ship 85 feet above sea level to cross between two oceans.

The Panama Canal was the first to use a lock-and-lake system on a massive scale.

Before the Panama Canal, there was the Panama railroad

The first ship to cross the isthmus of Panama went not by sea but by land: The paddlewheel steamship Explorer was taken apart and transported by rail, an effort that generated “more trouble than profit,” according to one account.

Working conditions on the Panama Canal, built between 1904 and 1914, were abysmal, with thousands of workers dying on the job.

The Erie Canal transformed New York City into America’s banking capital

By redirecting western trade through New York Harbor, the canal turned New York into the nation’s commercial hub. This surge in commerce shifted financial power from Philadelphia to Wall Street, establishing the city as America’s banking capital.

The canal project required the forced removal of local inhabitants

The canal displaced Panamanian communities, with towns like Gatun and Gorgona dismantled and farmlands lost, reshaping the region forever.

Drought conditions force fewer ships to sail the Panama Canal daily

In 2023, canal authorities reduced traffic in the canal amid severely dry conditions. These seven infographics from the Woodwell Climate Research Center explain exactly what happened that historically dry October, and how it affected global supply chains.

Before World War II, the US was a Pacific power

Decades before Pearl Harbor, the US held major Pacific territories—Hawaii, the Philippines, Guam, American Samoa, and numerous island bases—giving it strategic reach across the western Pacific. This presence increasingly overlapped with Japan’s imperial ambitions in the region, contributing to rising tensions.

The canal became a highway for American reform movements

Beyond goods, the canal carried ideas. Its corridor hosted Second Great Awakening revivals and became a center for activism—fueling abolitionist networks, women’s suffrage organizing, and other reform movements.

Travel the 363-mile Erie Canal, the waterway that cut freight costs by 90% and opened the American frontier.

Infrastructure projects in New York are much more difficult today

The Erie Canal was one of the most ambitious infrastructure projects in American history. Many have said such an effort would be impossible today. This article explores why that is the case and ponders the future of large-scale American infrastructure development.

Dr. William Gorgas eradicated yellow fever in Panama, crucial to canal construction

The disease was one of the factors hampering the French effort to build the canal. Gorgas' experience elsewhere in the Caribbean had taught him that good drainage and quaranting patients were essential, and he would eventually apply mosquito prevention tactics on a mass scale.

The transatlantic cable allowed for communications between North America and Europe

It had significant impacts on just about every industry, including finance. Specifically, the transatlantic cable made it so that real-time financial transactions could take place across the Atlantic, and allowed for much faster sharing of information that increased global market accuracy.

US military professionalism gave America a decisive edge in the war

The professionalism and engineering expertise of West Point–trained officers—like Grant, Lee, and Meade—gave the US a major advantage in the Mexican-American War, helping them win every major battle.

Amateur engineers built America’s first great infrastructure project

With no engineering schools in the US, the Erie Canal was designed and built by self-taught amateurs who improvised new methods and became known as the “Erie School of Engineering.”

The Civil War permanently strengthened federal power

The Civil War expanded federal power through emancipation, national military mobilization, and postwar civil rights laws, permanently strengthening the national government and shifting the balance of authority away from the states.

The Monroe Doctrine helped lead to the American occupation of territory abroad

This podcast explores how the policy motivated a century of US military intervention throughout Latin America, the Caribbean, and the Pacific—covering the annexation of Hawaii, the Spanish-American War, and occupations of Cuba, Haiti, and Panama.

The global economy runs on US dollars, with nearly 90% of international trade in 2019 being processed in US dollars.

Trade between the US and China has significantly increased in recent decades.

Some scholars consider the Bretton Woods system one of the best foreign policy decisions in US history

A survey of historians by the Council on Foreign Relations ranked the creation of the Bretton Woods system among the top 10 foreign policy decisions in US history, highlighting its role in establishing postwar stability, prosperity, and decades of economic growth.

The Erie Canal fueled a surge in westward settlement

By providing cheap, reliable transport to the interior, the canal made western lands more accessible. Farmers, traders, and immigrants moved into the Great Lakes region, accelerating population growth.

Container ships are just a fraction of total traffic via the canal

While more container ships traverse the canal than any other type of ship, vessels carrying dry bulk goods, vehicle carriers, chemical tankers, passenger ships, and more also pass through the Central American passageway.

The Roosevelt Corollary transformed the Monroe Doctrine from a defensive warning into a rationale for US military intervention

In 1904, President Theodore Roosevelt declared that the US had the right to exercise international police power in Latin America. Over the following two decades, the US intervened militarily in the region about a dozen times—often enough that Marines became known locally as "State Department troops."

Tariffs once fueled the US economy, historically serving as a primary source of revenue and a means to protect domestic industries.

The British Royal Navy—not the US military—enforced the Monroe Doctrine for most of the 19th century

In the early to mid-1800s, the US lacked the ships and military power to prevent European nations from colonizing the Americas. Britain enforced this to protect its commercial interests by keeping rival European powers out of Latin America.

The power and influence of the American presidency have expanded significantly over time—far beyond what the founders envisioned.

World War I brought attention to US reliance on mineral imports

Domestic stockpiles were inadequate for the extended trade disruptions caused by the four-year war. In response, the US Geological Survey increased its geological mapping to help search for important metals alongside new oil fields for fuel.

The US exported $426.3B in goods to Canada and imported $453.6B in goods from Canada in 2025.

How the US entered WWI in 1917

Originally taking a position of neutrality during the course of World War I, the United States of America eventually relented. Entering the war in 1917, support for the British and French had risen and Americans were incensed by Germany's overtures to Mexico and U-boat attacks that sank ships and ended American lives. See how and why the US entered WWI in this article.

Roughly 25,000 workers died building the canal

For each mile of canal that was built, 500 workers lost their lives. The threats came from multiple fronts: mudslides, floods, earthquakes and disease-carrying mosquitoes. Workplace accidents became so common that artificial limb manufacturers competed for contracts with the canal builders.

How the US built the Interstate Highway system

As late as World War II, it took a well-prepared motorist roughly 10 days to cross America from coast to coast in a car. That all changed when the nation undertook its biggest public infrastructure project in 1956, the National Interstate and Defense Highways Act, initiating a 36-year, $114B mission to lay 41,000 miles of roads across America. Watch a smart overview here.

American presidents did not travel abroad until Teddy Roosevelt visited the Panama Canal in 1906.

Engineering the Overseas Highway connecting the Florida Keys

A 113-mile series of bridges called the Overseas Highway connects Key West—the southernmost point of the United States—to mainland Florida. The route originally served as a railroad but has required regular reconstruction due to major storms. This video traces the history of the project in fascinating detail.

The formation of the UN elevated the US on the world stage

This podcast episode of "To the Best of My Ability" from the National WWII Museum goes behind the scenes of the United Nations' founding from the American perspective. It explores how FDR's vision for global peace took shape, how Truman carried it forward, and how Eleanor Roosevelt helped define human rights—set against the backdrop of wartime diplomacy, Cold War tensions, and the San Francisco Conference, where the UN Charter was signed.

The Erie Canal reduced freight costs by 90%

Before the canal, shipping goods overland cost about $100 per ton. After its completion in 1825, rates fell to just $10—making western farm products competitive in eastern markets for the first time.

Explore the technical side of the Erie Canal

Listen to this podcast from Northwestern University exploring the canal’s groundbreaking infrastructure—from locks and aqueducts to its role as America’s first large-scale engineered waterway.

Around 380 underwater cables power the Internet across the world.

On July 29, 1858, two steam-powered battleships met in the middle of the Atlantic Ocean. There, they connected two ends of a 4,000 kilometer (2,500 mile) long, 1.5 centimeter (0.6 inch) wide cable, linking for the first time the European and North American continents by telegraph.

FDR greatly expanded the authority and size of the executive branch

FDR expanded presidential power through the New Deal, World War II leadership, and direct communication with the public. He redefined the executive branch as an active policymaking force and established expectations for strong, interventionist presidential leadership.

The US dollar became the world's reserve currency, backed by gold, after 44 nations gathered in Bretton Woods, New Hampshire, in 1944 with the intention of rebuilding the global economy.

European colonization contributed to coffee's spread

European colonization created channels for large-scale coffee exports with workforces based in Asia, Latin America and the Caribbean. Trade routes throughout the Middle East and the rest of the world carried the drink to new shores and changed the agricultural and economic landscapes of the countries in the Bean Belt.

How the Golden Gate Bridge was constructed

San Francisco's Golden Gate Bridge is one of America's most iconic structures and is considered to be an engineering marvel. Built in 1930's, before the advent of modern construction technology, the structure was considered impossible by contemporary standards.

The US' coastal vacation destinations were developed with the aid of railroad companies, creating pivotal aspects of the vacation industry.

John Marshall strengthened the Supreme Court and national authority

As chief justice, John Marshall established the principle of judicial review. He reinforced federal supremacy in key cases, defining the Supreme Court as a powerful arbiter between states and the national government under the US federal system.

The US won every major battle of the Mexican-American War

Despite being outnumbered in key engagements, US forces defeated Mexican armies across every major front. Superior training, leadership, and logistics allowed the US to win decisively—capturing Mexico City without losing a single major battle.

The American Society of Civil Engineers' infrastructure report card gave the US a C in 2025, its highest grade since the project launched in 1998.

Japan's imperial expansion in Asia in the 1930s set the stage for war with the US.

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Oil's legacy: fueling industrial growth and shaping imperial strategies

This episode of The Rest Is History podcast traces oil's pivotal role—from fueling industrial growth to steering imperial power. It also examines how access to oil shaped US politics, World War II, and sparked the creation of OPEC following the Suez Crisis.