1. Regional Economics Create Differences
Section 7*1 pp

2. Preview Questions
How did the Industrial Revolution affect the United States?
How did agriculture differ in the North and South?
What was the American System?

3. I. Industrial Revolution
A. The Industrial Revolution
Begins in Great Britain in 1700’s
Uses factory system
Mass production of goods
Leads to social and economic reorganization

5. I. The Industrial Revolution
B. American Economy
Hurt by Embargo Act and War of 1812
Shift from trade to manufacturing

6. I. The Industrial Revolution
C. American IR begins in New England
Textile mills
Rely on labor of young women
Low wages, long hours, boring work

7. II. Two Economic Systems
A. Northern Economy – MFG.
Cash crops won’t grown in North
Slavery begins to die out in N.
B. Southern Economy – Cash Crops
Eli Whitney’s Cotton Gin (1793)
Larger plantations = more slaves

8. III. The American System
A. New growth = need to unify nation
B. Clay promotes American System
Protective tariffs
Stronger national bank
National transportation system

9. III. The American System
C. Transportation Improves
National Road
Erie Canal

10. III. The American System
D. Tariff of 1816
Increase cost of foreign made goods
People in S. & W. resent tariff
E. Second Bank of U.S. set up to establish national currency