The Market Revolution. The Americans, Chapter 9.1, Pages

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1 The Market Revolution The Americans, Chapter 9.1, Pages

2 U.S. Markets Expand Early 19 th Century Workers produce own goods Farms self-sufficient Trade surplus at local markets Purchase luxuries like coffee, tea & sugar Mid 19 th Century U.S. more industrialized (Northeast) Beginning of factory system Workers use wages to buy goods Farms practice specialization Market Revolution People buy & sell goods Goods & services multiply Income rises

3 The Entrepreneurial Spirit Capitalism Private ownership of means of production Factories, machines & land Profits go to those who supply capital Entrepreneurs Investors risk money in industries or business ventures Could lose investment, but Potential for huge profits Competition stimulates growth of business

4 New Inventions Charles Goodyear Develops vulcanized rubber 1839 More resistant to temperature extremes First used for boots Becomes very important after invention of automobile Sewing Machine Elias Howe 1846 I.M. Singer adds foot-treadle Leads to factory production Clothing prices reduced by 75% Leads to new fashions as people can afford more clothing

5 Impact on Household Economy Industrial output increases Farmers Agriculture flourishes Begin to use mechanized equipment Supply food for cities Purchase manufactured goods Manufacturing expense decreases New technology improves process Greater production; lower costs Workers become consumers as prices fall Products purchased for comfort as well as necessity

6 The Economic Revolution New inventions, many developed in the United States, contributed immensely to changes in American life. Some inventions simply made life more enjoyable. Other inventions fueled the economic revolution of the midcentury, and transformed manufacturing, transportation and communication. ~The Americans, Page 276.

7 Impact on Communication Telegraph Samuel F.B. Morse 1837 Morse code delivered by copper wire lines East Coast cities connected within 10 years 23,000 miles of telegraph wire by 1854 Impact on Business Transmit business orders Give up-to-date information on prices and sales Railroads use to warn of hazards and update times

8 Impact on Transportation Steamboat Robert Fulton designs Clermont in 1807 Used to ship good s to market Can travel upriver; does not need wind 200 steamboats by 1830 Canals 3300 miles of canals by 1841 Erie canal reduces shipping costs by 90% Ohio Valley no longer needs to ship to New York by New Orleans

9 Emergence of Railroads Advantages of Railroads Faster than shipping by canal 4x faster in 1840s Can operate all year Can travel inland Growth of Railroads 10,000 miles of track in 1850 Pull 2 billion tons of freight by 1859

10 New Markets Link Regions By the 1840s, improved transportation and communication made America s regions interdependent. Arteries like the National Road, whose construction began in 1811, had also opened up western travel. By 1818, the road extended from Cumberland, Maryland, west to Wheeling, Virginia; by 1838, it reached as far west as Springfield, Illinois. Growing links between America s regions contributed to the development of regional specialties. The South exported its cotton to England as well as to New England. The West s grain and livestock fed hungry factory workers in eastern cities and in Europe. The East manufactured textiles and machinery. ~The Americans, page 278.

11 Southern Agriculture Southerners don t favor Industrialization Investment capital tied up in agriculture Cotton & Tobacco remain staple crops Transportation & communications keep regions in touch & develop interdependencies

12 Northeast Shipping and Manufacturing Center of American Commerce New York becomes link between American agriculture & European markets More cotton shipped through New York than any other city Rise in Manufacturing 14% (1 in 7) of workers have manufacturing jobs More & better goods produced at lower prices than ever before

13 Increased immigration to Midwest Making the land arable Clearing wooded areas Plowing the land New Inventions John Deere Invents steel plow Allows oxen to be replaced by horses Cyrus McCormick Mechanical reaper Midwest Farming Can do the work of 5 farmhands Allows larger farms & cash crops of wheat & corn