Regional Economics Create Differences Section 7*1 pp. 212-218

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?

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

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

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

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

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

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

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