1. Inventions and Innovations Chapter 8 Section 1

2. Industrial Revolution A long term effort to increase production by using machines rather than the power of humans or animals – Began in Britain in the 1700s Later spread to the U.S.

3. American inventions and new technologies that came about during the Industrial Revolution Steamboats, cotton gins, steam shovel, interchangeable parts, mechanized cotton mill, canning factory, internal combustion engine, electromagnet, etc…

4. Interchangeable Parts All parts of a product are made to an exact standard – Products are no longer unique

5. Cotton Gin A machine that separates the seeds from raw cotton fibers – 1 worker could now clean 1,000 pounds of cotton a day

6. Patent A license from the government giving an inventor the sole right to make, use, and sell an invention for a certain period of time

7. Market Revolution A change in the way American made, bought, and sold goods – More Americans were buying and selling goods, and borrowing and circulating money

8. Manufacturing The use of machinery to make products – Began in New England with use of water power

9. Centralized A central factory where all the tasks involved in making a product were carried out – Using this method, a New England textile mill produced 4 million yards of cloth in 1817 and increased to 323 million yards in 1840

10. What are the advantages of a centralized production process? Dramatically increased production Brought great prosperity to the economy in the North

11. Free Enterprise System An economic system in which private companies compete for profits – Also known as capitalism Rewards people who can find better, faster, and more efficient ways of running their business – Encourages innovation and creating new industries, job and wealth

12. Specialization A system in which a worker performs just one part of an entire production process – Helped to maximize production

13. Investment Capital Money that business spends in hopes of future gain – New equipment, new buildings, new workers, etc…

14. The effects of manufacturing and investment capital on the U.S. economy. Made more goods available for purchase so money became more widely used Producers of goods were not the people that sold them Items people used to make themselves were now available for purchase

15. Bank Note A piece of paper that banks issued to their customers – People used bank notes to pay for goods and services – Could be exchanged for specie (gold or silver)

16. Business owners were making enough money to improve and expand their businesses Economy expanded New wealth created

17. How did banks help create economic growth? Provided money entrepreneurs needed to build new factories or expand existing facilities Loaned out money that depositors had placed in banks – These loans would be paid back with interest

18. Innovations in transportation, and communication. Transportation – Steam power – New canals – New and better roads – railroads Communication – Newspapers – Magazines – More post offices