1. Growth and Expansion 1790 to 1825
Chapter Eleven

2. Economic Growth
Section One

3. A) The Growth of Industry

4. American Farmers
In the beginning, most American goods were produced on the farm or in the home by hand or with homemade tools.

5. British Factory System
In the 1700’s, the British began to create machines in mills or factories to make producing goods easier. They used water power so most were built along rivers.

6. Industrial Revolution
The Industrial Revolution was this change when the work force moved from their homes to these factories to work for wages. It brought people and machines together.

7. Factory Workers
Men, women and children worked in factories in dangerous conditions.

8. New England Factory
By 1800, this system was taking root in New England whose poor soil made them turn to industry.
New England also had a good supply of iron, coal, and good ports for shipping.

9. Capitalism
The idea of capitalism in the U.S. helped industry grow. People put up capital or money to get a business up and running to make a future profit.

10. Free Enterprise System
Free enterprise was also important for industry – free to make whatever, whenever, wherever you want.
Four Principles of the Free Enterprise System:
Competition
Profit
Private Property
Economic Freedom

11. Technology Technology helped create new ways to build things.
Spinning Jenny
Water Frame
Power Loom

12. Eli Whitney
The invention of the cotton gin by Eli Whitney allowed one worker to do the work of 50 in cleaning out cotton seeds. This drastically changed the idea of slavery in the South – creating the need for more slaves due to more seeds to plant.

13. U.S. Patent System
The patent system gives the creator of an invention the right to make all the profits on it or a certain period of time. Jacob Perkins had the first patent for making nails.

14. Richard Arkwright
Richard Arkwright was the creator of a cotton spinning machine. This machine marked the beginning of the British factory system.

15. Samuel Slater
In 1789, Samuel Slater, a former British factory worker, snuck out the secrets of the British Factory system to the U.S., which marked the beginning of our Industrial Revolution.

16. Francis Cabot Lowell
In 1814, Francis Cabot Lowell built a factory in Massachusetts putting all of the machines and workers in the same building. His workers were mainly women. This created the first factory system in the United States.

17. Lowell System

18. Lowell Girls
Women were a new, untapped labor force.

19. Interchangeable Parts
Eli Whitney also invented the idea of interchangeable parts to make large numbers of identical parts all at the same time. They could then be put together later.

20. B) Agriculture grows

21. American Farmers
By the 1820’s, over 65% of Americans still lived and worked on their farms. These were usually small farms in the Northeast and Western states.

22. Southern Cotton
In the South, the need for cotton in the Northern factories changed the way they grew crops. Cotton required large numbers of slaves to plant, maintain, and pick the cotton.

23. Cotton Gin
The cotton gin changed everything, the demand for slaves went through the roof.

24. c) Economic Independence

25. Small Business Owners
In the beginning, most industry was funded by small owners hoping to make a small profit.

26. Corporations
The idea of corporations, large businesses, that sold stock, a share of the profit, to investors became very common.

27. Second Bank of the United States
The Second Bank of the united States made large loans to these corporations causing many to oppose the bank saying it made a few rich at the expense of others.

28. New Factory Cities
Factories also created new cities along rivers, which were not the healthiest places in the world. Fires and disease were common.
The new cities pulled many farmers off the farm to the factories for wages and the city life.