Final answer:
The trade and production of wheat and flour in the West deeply impacted the Eastern economy, particularly during times of international conflict like the Crimean War and World War I. The Panic of 1857 and the subsequent economic fluctuations demonstrate how Eastern financial decisions and policies influenced Western agricultural success, ultimately affecting the broader American economy.
Step-by-step explanation:
The trade and production of wheat and flour in the American West had a significant influence on the Eastern economy. The dynamic was complex, shaped by economic booms and busts, agricultural developments, and international events. One notable instance was the economic impact of the Panic of 1857, which followed a surge in American grain exports during the Crimean War in Europe. When the war ended and exports diminished, many American banks failed, affecting jobs and causing economic distress.
Demand for American grain was robust during World War I, as European agriculture had been disrupted and grain from the U.S. Great Plains became critical in supporting Allied forces. This brought wealth to Midwestern agricultural communities and led to significant investment in land and equipment for increased production. However, after the war and fluctuating market demands, such as during the early 1930s drought, farmers expanded production even at lower grain prices, leading to financial strain and soil depletion due to over cultivation.
These events illustrate the interconnectedness of the East and West, where Eastern finance and political perceptions often influenced the stability and success of Western agriculture, which in turn affected national economic prosperity.