The History and Economic Development of Los Angeles: Oil, Railroads, and Technology

Introduction

Los Angeles is well-known for its exciting lifestyle, fascinating scenery, and beautiful beaches. Throughout history, the locals used their knowledge to modify the natural landscape for more humanitarian subsistence. They built embankments and established infrastructures like harbors and railways. Before World War II, much of what is now the city was used for farming and raising cattle, and eventually, these ranches were developed into residential neighborhoods. Disasters create a state of economic inequalities in that those affected by them suffer the loss of their properties, which further affects the relationship between people and their physical environment.

The downtown area of Los Angeles has had a tremendous transition from the discovery of oil and the creation of the railroad to the new modern technology in the city, which has impacted people economically. The historical development of the city was led by both major and minor events that impacted society.

Establishing the City

The history of Los Angeles began with the advent of the first White people on the North American continent. The Tongva and Chumash, the tribes of Indians who lived on the territory of the present metropolis, first saw the White people back in 1542. It was a team from a Spanish ship led by the navigator and adventurer Juan Cabrillo, who anchored in local waters. However, only 227 years later, the Franciscan missionary Juan Cresley noted in his notes that the lands where they landed were fertile and it would be beneficial to build a settlement there. This is what Junipero Serra did in 1771, another missionary who founded the settlement and named it after the Archangel Gabriel. Thus, the official date of the founding of Los Angeles is September 4, 1781. It was on this day, at the convincing request of the governor of the then two Californias, a group of colonists of Spanish origin, consisting of 46 people, founded their village near the mission.

At the beginning of the 19th century, the vilage was already an impressive secular settlement with a population of 650 people at that time. Soon, Mexico declared its independence, and Los Angeles became part of it. However, the imminent defeat in the Mexican-American War and the subsequent peace treaty of 1848 assured that the city fell under the jurisdiction of the United States. At the end of the 19th century, a railroad was laid to the city, and the rapid development of Los Angeles began.

Oil Discovery

People impacted the severely environment once the Los Angeles oil field was discovered. Finding oil was a great breakthrough for Los Angeles’s economic development. In the early 20th century, oil was found in the most unpopulated areas of Salt Lake and Beverly Hills. In 1892, near the modern-day Dodger Stadium stands, oil was discovered by Edward Doheny, which led to a significant economic expansion in the region. Twenty-five percent of the world’s oil production came from Los Angeles in 1923. It had a tremendous effect on the environment of the city, facilitating pollution and industrial development; however, engaging in economic activities such as mining also helped to reduce economic inequalities. With the advent of oil mining, the city has been progressively developing and growing, eventually becoming a tourist attraction source. Tourists visiting Los Angeles and its nearby areas have improved the economic livelihood of residents by facilitating trade and bringing monetary resources into the city’s economy.

Port Construction

The construction of the Port of Los Angles increased the city’s economic activity through the strengthening of the fishing industry and trading. Through the establishment of the port, people became able to interact more with the environment, expanding their reach. In 1871, John Downey founded the Farmers and Merchants Bank of Los Angeles as the city’s first chartered financial institution. When the transcontinental train reached Los Angeles in 1876, the competition to become the West Coast’s primary port began in earnest. To make Santa Monica the undisputed hub of Los Angeles, Collis P. Huntington constructed the world’s longest port there in 1894. Southern California saw a dramatic transformation with the transcontinental railroad construction. The city’s economic growth and other advancements benefitted greatly from its completion, as it opened and linked Los Angeles to the rest of the United States and the globe. With this expansion, new business and labor opportunities arose, creating thousands of new jobs for the population, which helped to stimulate underdeveloped areas and neighborhoods of the city.

Education

Los Angeles citizens started building schools in the city since its establishment, as education was and remains one of the ways that people can be economically empowered. Through education, people can secure well-paying employment. Thus, it has been crucial in the elimination of poverty and in enhancing industrialization and technology. Mission Santa Clara, founded in 1847, was the city of Los Angeles’s first school taught entirely in English. Olive Mann Isbell established the institution in a humble house at the Mission Santa Clara with the first enrollment of 25 students. The 1849 Constitution mandated public education, and from 1849 to 1851, Monterey’s Colton Hall operated as the city’s only public school. First established in 1851 as California Wesleyan College, the institution eventually changed its name to College of the Pacific. Later, more learning institutions were founded in the area, providing all populations with opportunities for education. Continuous and higher education provided different strata of the public with opportunities to open their own businesses, facilitating the differentiation of the city’s economy.

Water Supply

Water is a crucial resource in many economic activities, such as, for example, electricity production. The lack of a reliable water supply posed the most significant challenge to Los Angeles at the start of the twentieth century, both economically and environmentally. Harrison Gray Otis was the first to purchase the San Fernando Valley land and recruit a water head in the Los Angeles Aqueduct. Certain underhanded political tactics helped to get the contracts approved, and the area was finally able to expand with the opening of the new canal in 1913. Despite his achievements, Mulholland died in 1928, when 600 people perished after the St. Francis Dam crumbled only hours after he surveyed it. This event led to the development of a more secure and safer approach to working with large bodies of water, facilitating the establishment of specific measures to prevent future accidents.

World War II

Los Angeles played a big part in helping the USA engage in World War II, which impacted the industrial activities in the city significantly. After the Pearl Harbor attack, the United States had to simultaneously mobilize the country’s industrial might against its enemies. Located on the coast, Los Angeles was an excellent manufacturing site for aircraft because of the stable and year-round warm climate. People from throughout the nation relocated to help meet the labor need, creating new neighborhoods and expanding the city limits. Airfields were constructed throughout the area, and aerospace manufacturers such as Hughes, Lockheed, Northrop, and Douglas were instrumental in winning the war. Thus, World War II became one of the major expansion drives for the city.

Road Construction

The construction of roads in the city improved the economic activities in Los Angeles, allowing people to traverse the city more safely and quickly. Since the late 1800s, Los Angeles has predominantly functioned as a rail town. There were hundreds of miles of track, but as the postwar optimism spread, the rise of the vehicle started to supplant the system. In the 1950s, modern motorways began cutting through communities due to pressure from the automobile, oil, and tire industries for more road construction. These highways have facilitated mass exodus from the city, causing the decline of the downtown and surrounding older neighborhoods. As a result, the city’s railway system was neglected due to road construction.

Natural Disasters and Terrorist Attacks

Natural disasters in the past have significantly impacted many economic activities and overall population’s life within Los Angeles. The 1971 damage from the Sylmar earthquake affected hospitals, motorways, and other structures, prompting a reevaluation of construction codes. The city’s earthquake commission was established, and building rules and development oversight along earthquake lines were tightened. Unfortunately, when the earthquake of 1994 occurred, it was found that many of these new regulations had been poorly implemented. The Newhall Pass Interchange, for example, collapsed for a second time, bringing substantial economic and human losses.

Several tragic events have occurred in the city that have also affected the population severely. These events, while not detrimental to the overall economic activity of Los Angeles, shook the public and prompted many discussions and arguments. For example, all five members of the Salomon family vanished from their home in October 1982. There were no signs of a break-in or theft; the only evidence was a few bloodstains and a damaged carpet. Another example is how three people were killed and 36 were injured when a bomb exploded at the Pan Am terminal in 1974. The terrorist attack has shaken society, prompting a new round of arguments about safety measures and police work. In 1910, another explosion shook the Los Angeles Times publishing factory, and it did not take long for the blaze to spread across the facility, which had been storing many tons of ink. These events have hampered economic growth as people became wary of investing, trading, and participating in business due to the fear of new attacks or disasters.

Olympics and Racial Discrimination

Los Angeles has hosted many international events, the most remarkable being the Olympics. The city was awarded the 1984 Summer Olympics as no other country other than the U.S. volunteered to host. The fact that Los Angeles had already developed infrastructure also factored in the decision. The United States of America won the most medals overall, and the Opening and Closing Ceremonies are still remembered as one of the best. However, there has been a long history of racial conflicts that have polarized the public of Los Angeles, and after the Olympics, the issue flared again. March 1991 saw the brutal beating of Rodney King at the hands of policemen. After the police officers were acquitted, rioting broke out because a portion of the event had been filmed. Shortly after the judgment was announced, Reginald Denny’s beating was broadcast live on television. Police were vastly outnumbered and unable to stop the city’s several breakouts. Rioters attacked an Asian neighborhood after a Korean shopkeeper was found not guilty of murder in the shooting death of an unarmed teenager.

Massive property losses were encountered during the riot: locals smashed windows, stole merchandise, and torched supermarkets, convenience stores, and bars. White and Latino drivers of light complexion were among those attacked by the residents; some were even forced to exit their vehicles and severely assaulted. This event exacerbated animosity among Koreans and African Americans and fueled the Black community’s anger at the judicial system, prompting the discrepancy in the society.

The Modern Society

Los Angeles had a crucial role in developing the Internet as it is known today. It began as a Defense Department’s effort to create a communication system that would remain operational in the event of a nuclear attack. Schools in Southern California received a disproportionate share of federal funding for this purpose, and new businesses arose with the development of information technologies. There has been a significant technological advancement in the city, and this has improved the economic livelihood of the citizens. Despite the city’s long history of technical experimentation, several Silicon Valley firms have relocated to Los Angeles in recent years. The Jet Laboratory, located in the Pasadena area, was established in the city. Amateur rocketeers laid the groundwork for the Apollo missions and subsequent space exploration by founding the laboratory that produced the first American spacecraft. Currently, the businesses focus on improving the city’s technology to attract huge investments and eliminate economic inequalities.

Agriculture and Transport Sector

Several crop cultures have been introduced to Los Angeles in the past that have impacted the people economically. In 1873, people from Brazil imported navel oranges to California. Establishing plantations of these fruits in Los Angeles has massively improved the economy of the residents who rely on agriculture. In 1790, Los Angeles’s grain crop surpassed most other California towns. Large-scale orchards were found in the city, and wine was exported, facilitating the further expansion of agricultural sites in the city’s rural area.

There has also been a massive improvement in the transportation sector in Los Angeles since the railroad crisis. The underground train network began construction in the 1980s and opened to the public in the 1990s. As the number of private sector employment increased, the popularity of bus lines among the locals grew. The year 1990 saw the shutdown of several automobile manufacturers and the rise of the entertainment and celebrity industries. Thus, Los Angeles bacem one of the world’s most prominent tourist attraction cities.

Conclusion

There has been a massive growth in overall technology in Los Angeles throughout history, and each aspect has impacted the people and their living environment. Farming, tourism, oil, real estate, and film industries have contributed significantly to Los Angeles’s current robust economy. The creation of the railroads opened Los Angeles to other cities, and events discussed in this paper shaped its society, affecting not only people but also the land itself. At the moment, the metropolis is the largest port and the center of the aerospace and radio-electronic industries. In addition, Los Angeles is a popular climatic resort and the center of the film industry not only in the United States but throughout the world.

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StudyCorgi. "The History and Economic Development of Los Angeles: Oil, Railroads, and Technology." February 12, 2026. https://studycorgi.com/the-history-and-economic-development-of-los-angeles-oil-railroads-and-technology/.

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StudyCorgi. 2026. "The History and Economic Development of Los Angeles: Oil, Railroads, and Technology." February 12, 2026. https://studycorgi.com/the-history-and-economic-development-of-los-angeles-oil-railroads-and-technology/.

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