1. Chapter 7 Section 1 Regional Economics Create Differences
Mr. Clifford
US 1

2. Main Idea & Why it Matters
Main Idea: The North and the South developed different economic systems that led to political differences between the regions
Why it Matters: Different regions of the country to have differing political & economic interests today.

3. Terms & Names Eli Whitney Interchangeable parts Mass production
Industrial Revolution
Cotton gin
Henry Clay
American System
National Road
Eerie Canal
Tariff of 1816

4. ANOTHER REVOLUTION AFFECTS AMERICA
Interchangeable parts and the factory system made mass production possible.
Factory manufacturing became the cheapest, easiest, & most profitable way to produce goods
Industrial Revolution: a massive change in social and economic organization resulting from the replacement of hand tools by machines.

5. Interchangeable Parts
- Example of Eli Whitney’s ‘interchangeable gun parts’. Each part is mass produced in order to fulfill customer demand and make product less expensive.

6. Great Britain Starts a Revolution
18th century, inventors generated power using:
swiftly flowing streams
coal.
Inventors developed power-driven machinery to quickly mass produce goods.
EFFECT
Advances in diet, medicine, and sanitation enabled people to live longer.
Increased population
high demand for jobs.
More Profit + More Factories = JOBS

7. Do Now QUESTION 1
How did the Embargo Act of 1807 and the War of 1812 unknowingly help the United States develop an Industrial Economy?

8. The Industrial Revolution in the United States
The United States had it all:
rushing rivers, rich
deposits of coal and iron
Increasing amount of unskilled immigrants who needed work.
Embargo of 1807 and the War of 1812 made Americans concentrate on developing domestic industries.
US could NOT rely on shipping and international trade between
Americans had to invest their money in developing industry within the United States.

9. New England Industrializes
New Englanders had to embrace industry.
Mechanized textile mills and factories began to pop up throughout New England.
Samuel Slater
built the first mechanized textile factory in Pawtucket, Rhode Island.
He memorized the plans for the mill and built the cotton spinning machine to produce thread.
It was the first factory in the United States that turned raw cotton into thread.

10. New England Industrializes
Farms in New England were declining. Immigrants and farmers were going to Lowell looking for work.
By the late 1820’s Lowell became a booming manufacturing town.

12. Agriculture Farmers in north and west
Would raise crops/livestock
sell what they produced at city markets
purchase whatever manufactured products they needed from Northern factories.
Farmers and industries each supported the growth of the other and neither depended on slavery.
Factories and farms did not rely on slaves for labor. Anti-slave movement in North spread

13. Farm

14. PLANTATION ECONOMY Cotton Becomes KING in the South
Cotton Gin: made it possible for Southern farmers to grow cotton for a significant profit.
Southerners & wealthier planters bought up huge areas of land between the Appalachian Mountains and Mississippi River.
By 1820, this plantation system transformed Louisiana, Mississippi, and Alabama into a booming Cotton Kingdom.

15. Cotton Plantation

16. Slavery Becomes Entrenched
rich planters were adamant about keeping slavery LEGAL in the south.
From , cotton production surged from 3000 bales a year to 178,000 bales
1808, slave traders had brought 250,000 additional Africans to the United States.
Not all Southern blacks were slaves. Some communities of free blacks had gained their freedom through various means by the 1800’s. Some slaves managed to buy their freedom with wages they earned by hiring themselves out to other whites after they’d finish their daily work for their owners.

17. QUESTION 2
Why were Southern Planters adamant about keeping slavery legal in the south?

18. Plantations & Slavery

19. What was the goal of the American System?
DO Now Question 3
What was the goal of the American System?

20. Henry CLAY PROPOSES THE AMERICAN SYSTEM
American System: program to unite the diverse economic regions in the US, strengthen the economy, and allow US to be self sufficient.
For the American System to be implemented the US government would have to:
1.) establish a protective tariff
2.) resurrect the national bank to fund internal improvements
3.) establish a national currency to encourage trade

21. Explain how the American System would work?
Question 4
Explain how the American System would work?

22. The American System
The American System would unite the nation’s economic interests.
Industrial North
would produce manufactured goods which ALL AMERICANS WOULD PURCHASE. (tools, furniture, clothing, weapons, shoes, etc.)
Agricultural North/West
would produce grains, vegetables, corn, livestock for US
Plantation South
Provide cash crops (tobacco, cotton, indigo, rice) to fuel industrial economy
GOALS:
1.) The United States would be economically independent from Europe.
2.) Unite the diverse regions of the US.

23. QUESTION 5
Why was the construction of the Erie Canal so important for US economy?

24. INTERNAL IMPROVEMENTS Eerie Canal
The Erie Canal was completed in 1825 and it linked the Atlantic Ocean (Hudson River) to the Great Lakes (Lake Erie).

25. INTERNAL IMPROVEMENTS Turnpikes, highways, & National Road
States built roads and canals using money from tolls which people paid to travel on state built turnpikes. The federal government built a National Road which connected Maryland to Virginia.

26. Why did the US Government create and ratify the Tariff of 1816?
QUESTION 6
Why did the US Government create and ratify the Tariff of 1816?

27. Tariffs & the National Bank
WHY A TARIFF?
British goods were much cheaper than American goods. The federal government wanted Americans to buy American goods, not British goods.
Tariff of 1816
To aid American industries, President Madison imposed the protective tariff.
The tariff would make American consumers buy American made products by making foreign made products more expensive.

28. Tariff

29. Tariff’s upset westerners & southerners
Northeasterners welcomed protective tariffs on imports with relief. WHY
Southerners & Westerners
Purchased inexpensive products from Britain for years. Tariff made products more expensive.
resented any government intervention that would make goods more expensive.
supported states’ rights
believed federal government was becoming too powerful.

30. James Monroe & ‘Era of good Feelings’
Majority of Americans were happy that the nation was growing economically.
James Monroe, Republican from Virginia, was supported by all regions.
Time period was known as “Era of Good Feelings”.
However, battle over nationalism and states’ rights would continue up until the Civil War.

31. States’ Rights vs. Nationalism
Who should have the ultimate authority?
Should states be able to nullify federal laws?