Final answer:
The Western frontier experienced economic stagnation due to high interest rates for farmers, the Panic of 1857's adverse effects on the economy, the closure of the frontier, and diminishing returns from mining and cattle ranching.
Step-by-step explanation:
The western frontier's economic struggles can largely be attributed to a complex mix of financial risk, resource depletion, and changing economic circumstances. High interest rates plagued Western farmers as they were perceived as risky investments by Eastern financiers due to a high rate of bankruptcy among farmers. This East-West financial divide contributed significantly to the perception of economic stagnation. Moreover, during the late 19th century, the American economy faced fluctuations such as the Panic of 1857, which resulted from a decline in grain exports and European investment, subsequently causing bank failures and unemployment.
Another contributing factor was the closure of the frontier as reported by the Census Bureau in 1890; it signified the end of free available land, which had been a driving factor for migration and economic development. Farms, particularly smaller ones, struggled despite improvements like the railroad expansion and advanced farm equipment. The frontier's infrastructure, although bolstered by legislation like the Homestead Act, often failed to support the economic growth necessary for many settlers to succeed, leading them to migrate to cities or less populated western regions in search of better opportunities.
Additionally, the diminishing returns from activities such as mining and cattle ranching, once considered lucrative, further contributed to the economic stagnation. Resource depletion and the inevitability of small-scale operations faltering due to scale and capital limitations meant that economic vitality in the West was unable to be sustained for many settlers. Taken together, these elements paint a picture of a region struggling to find consistent economic footing in the face of rapid expansion and external economic pressures.