The Market Revolution

The Market Revolution

Before the Industrial Revolution 

Remember, before the Industrial Revolution (early 1800’s) most Americans lived on farms and produced their own goods or traded with neighbors. 

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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 Revolution 

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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 Revolution This led to what is called the Market Revolution.

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This had a huge impact on the U.S. economy and in the daily lives and culture of Americans.

Effects of the Market Revolution 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).

Capitalism 

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.

Entrepreneurs 

Individuals who invest (risk) their own money in new industries.

An American Entrepreneur 

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 System 

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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!

Revolution: New Inventions The Sewing Machine, Elias Howe, 1846 

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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

An Economic Revolution: New Inventions  Invention of the telegraph—Samuel F.B. Morse 

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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.

An Economic Revolution: New Inventions  Charles Goodyear creates a process of vulcanizing rubber which was then put to over 500 different uses.

An Economic Revolution: New Inventions Improvements in farming equipment

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John Deere invents a steel plow that could break the thickly matted soil of the West.

Revolution: New Inventions 

Improvements in farming equipment 

Cyrus McCormick (1830’s) introduces the mechanical mower-reaper that could do the work of 5 men.

An Economic Revolution: Improvements in Transportation  Toll roads and turnpikes   

Canals (success of the Erie Canal) The Steamboat Railroads

Boats Before… 

What types of boats were being used before? 

Keelboats and flatboats = less than 1 mile per hour; very expensive  Hard to go upstream!!

The Steamboat 

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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: 

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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

Railroads 

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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

The Railroad Explosion 

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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. 

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Most ran east to west—linking farms to the factories. ¾ of the railroad track was the Northern part of the country!