The Market Revolution. Before the Industrial Revolution Remember, before the Industrial Revolution (early 1800’s) most Americans lived on farms and produced

The Market The Market RevolutionRevolution

Before the Industrial Before the Industrial RevolutionRevolution

Remember, before the Industrial Revolution (early 1800’s) most Americans lived on farms and produced their own goods or traded with neighbors. Farm families were self-sufficient—grew crops,

raised animals for food, made their own clothing, candles, soap, etc.

At local markets they sold wood, eggs, butter, etc. for cash which they used to buy coffee, tea, sugar, or horseshoes.

After the Industrial After the Industrial RevolutionRevolution

But, after the Industrial Revolution came to America things slowly began to change.

The U.S. (especially the Northeast) became more industrialized with the rise of textile mills and the factory system.

People began spending their earnings on goods produced by other workers.

Workers and farmers became specialized. Making or raising one specific item or crop that

they could then sell.

The Market The Market RevolutionRevolution This led to what is called the Market

Revolution. This had a huge impact on the U.S. economy

and in the daily lives and culture of Americans.

Effects of the Market Effects of the Market RevolutionRevolution

1. People bought and sold goods rather than making them for their own use—used cash or credit!!

2. Changes manufacturing from at home to in the factories—leave home to go to work!!

3. People move to live in the cities for jobs—urbanization (especially in the North).

CapitalismCapitalism The economic system in which private

businesses and individuals control the means of production—such as factories, machines, and land—and use them to earn profits.

EntrepreneursEntrepreneurs Individuals who invest (risk) their own

money in new industries.

An American An American EntrepreneurEntrepreneur

One example of capitalism at work with an American entrepreneur is Francis Cabot Lowell. Formed the Boston

Manufacturing Company that produced textiles.

Lowell’s Factory Lowell’s Factory SystemSystem

Built a huge factory with living accommodations on-site.

Hired young girls to work in the factory and live in the dorms there.

Low wages, poor working conditions = high worker turnover rates. But the workers were easily

replaced!

An Economic An Economic Revolution:Revolution: New InventionsNew Inventions

The Sewing Machine, Elias Howe, 1846

Revolutionized the clothing business

Causes for a greater demand for cotton and wool

Significance: Takes the making of clothes out of the home and into factories

Invention of the telegraph—Samuel F.B. Morse 1844, Morse strung a wire 40 miles from

Washington to Baltimore Significance: Better

communication over the country and businesses used the telegraph to transmit orders and relay up to date information on prices/sales.


Charles Goodyear creates a process of vulcanizing rubber which was then put to over 500 different uses.


Improvements in farming equipment John Deere invents a

steel plow that could break the thickly matted soil of the West.


Improvements in farming equipment Cyrus McCormick (1830’s)

introduces the mechanical mower-reaper that could do the work of 5 men.


Toll roads and turnpikes Canals (success of the Erie Canal) The Steamboat Railroads

An Economic An Economic Revolution:Revolution: Improvements in Improvements in TransportationTransportation

Boats Before…Boats Before… What types of boats were being used

before? Keelboats and

flatboats = less than 1 mile per hour; very expensiveHard to go

upstream!!

In 1807, Robert Fulton developed the first steam driven boat; called it the Clermont.

Left NYC and churned 500 miles up the Hudson River to Albany in 32 hours.

Significance of the Steamboat: Changed all of America’s navigable rivers into

2-way transportation Could carry more people & goods Travel time was cut by 2/3 and costs by 1/2

The SteamboatThe Steamboat

Railroads represent the most significant contribution to the transportation of long distances (until the airplane).

Trains were faster, more reliable, and cheaper than canals to construct, and did not freeze in the winter.

Able to go almost anywhere; defied terrain and weather--didn’t need water

RailroadsRailroads

The Railroad The Railroad ExplosionExplosion

First railroad in the U.S. = the Baltimore and Ohio (the B&O) in 1828.

By 1860, the U.S. had 30,000 miles of railroad track. Most ran east to west—linking farms to the

factories. ¾ of the railroad track was the Northern part of the

country!

Documents

The Market Revolution. Before the Industrial Revolution Remember, before the Industrial Revolution (early 1800’s) most Americans lived on farms and produced