Market Revolution & the Growing National Economy Mr. Owens Crash Course: Market Revolution

Essential Questions What were the causes and effects of the rise of the Market Revolution including the role of entrepreneurs? What new technological innovations increased both factory and agricultural production and efficiency? How did the growth of manufacturing both foster the growth of wealthy business elites and a middle class, but also lead to a widening maldistribution of wealth and a growing population of laboring poor?

Population Growth 1800-1825 U.S. population doubled, & doubled again by 1850 due to high birth rate & rising immigration (from Great Britain & Germany by 1830) By 1830s 1/3 of population lived west of Appalachians

Transportation Roads – success of Lancaster Turnpike in PA sparked expansion of roads & turnpikes, mostly funded by states except National (Cumberland) Road from Maryland to Illinois 1811-1850s Canals: Erie Canal completed in NY by 1825, Gov. De Witt Clinton, greatest construction project so far Steamboats: Robert Fulton’s Clermont up Hudson River in 1807 Railroads – by 1830s competing with canals led to rise of western cities: Cleveland, Cincinnati, Detroit, & Chicago

Growth of Industry Industry limited by 1800, but manufactures surpass value of agriculture by 1850s Mechanical Inventions: Eli Whitney’s cotton gin, & rifle factory used interchangeable parts to supply War of 1812 Corporations: 1811 NY 1st incorporation law, early NY stock exchange- idea of “limited liability” Factory System: Samuel Slater established first true textile factory in 1791, more expanded due to Embargo esp. in New England such as Lowell, MA Labor: textile mills hired young poor farm women – Lowell System – regimented & lived in dorms, rise of child labor & poor immigrants by 1840s Unions: Trade (craft) unions began in 1790s due to low pay, long hours & unsafe conditions, BUT weak due to Cheap immigrant labor esp. Irish state laws limit unions, depressions caused high unemployment & desperation

Agriculture Rise of commercial agriculture – cash crops for market instead of subsistence due to cheap land, easy credit & expanded markets due to transportation Cotton & South: Eli Whitney’s Cotton gin 1793 – cotton replaced indigo & tobacco & expanded west – high demand for British textile industry

Effects of Market Revolution End of individual self-sufficiency – led to specialization Increased standard of living Single women moved to cities to work in factories & as domestic servants More independence, but few legal gains More social mobility, but increased gap between rich & poor Increase in slavery despite ban on international slave trade in 1808, due to demand for cotton from Britain & northern textile industry Slave Population: 893,000 in 1800, 2 million in 1830, to nearly 4 million by 1860