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The steam engine significantly transformed transportation and industry in both the North and South of the United States during the 19th century. In the North, it facilitated the rapid growth of factories and the expansion of railroads, boosting industrialization and urbanization. Conversely, in the South, while it improved the efficiency of transporting cotton and other goods, the economy remained predominantly agricultural and reliant on slavery. Overall, the steam engine contributed to the economic divergence between the industrial North and the agrarian South, setting the stage for regional tensions.

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