Transcript Growth and Expansion 1790-1825

Growth and Expansion
1790-1825
Chapter 10
Economic Growth
Section 1 Chapter 10
• The Industrial Revolution began in the United
States around 1800
• More than 65% of Americans in 1820’s live on
farms.
• People left their homes and farms for work in
the mills and earn wages
• Technology increased during the Industrial
Rev.—Scientific discoveries that simplified work
• Free Enterprise—American Economy (people
are free to buy, sell, and produce whatever
they want)
• New England becomes the center of
Industrial Growth
– It had more workers, it had many rivers &
streams, it was close to other resources
and New England had Capital $$$$$
• Western Farmers north of the Ohio River
raised pork and cash crops
• New York, Boston, and Baltimore become
centers of commerce and trade
• Pittsburgh, Cincinnati, Louisville profited from
their location on major rivers.
• Merchants were essential to the Industrial
Revolution
– Their capital was important for developing
machinery and building industries.
• Inventions revolutionized the textile industry
– The Spinning Jenny
– The Water Frame
– The Power Loom
• Eli Whitney invented the Cotton Gin
• Oliver Evans developed a mechanical flour
mill
• In order to protect the rights of inventors in
1790 Congress passes the Patent Law
• The Industrial Revolution started in Britain
– The technology made its way to the United
States by workers memorizing designs and
then duplicating them in the U.S.A
– Samuel Slater was the most famous
person to memorize British factory system
• Francis Cabot Lowell opened a textile plant
in 1814 in Waltham, Massachusetts
– The new system Lowell employed became
know as the FACTORY SYSTEM
• A System of bringing manufacturing
steps together in one place to increase
efficiency.
• 80% of the workers in Lowell’s factories
are girls
• Eli Whitney pioneered the use of
interchangeable parts.
– Identical machine parts that could be
quickly put together to make a complete
product.
Cotton Gin
• The Industrial Revolution caused the demand
for cotton to grow
•
Both the North and the South profited from the
prosperity of cotton
1. Cotton's huge profitability caused planters to
buy more slaves and more land to take advantage
of the economic potential
a) 1800 18 million lbs. of cotton exported
($5,000,000 value), 7% of total exports
b) In 1830, 300 million lbs. of cotton exported
($30,000,000 value), 41% of total exports
c) In 1860, 1,700 million lbs. of cotton
exported ($191,000,000 value), 57% of
total exports
2. 80% of the world's cotton came from the
South in 1860. Most went to factories in England
• Mostly small investors financed the new
industries during the Industrial Revolution
Congress charted the Second Bank of the
United States in 1816
– Strengthen the nation’s economic
independence
• Corporations and stocks help create large
businesses
• Problems came with the growth of towns and
cities
– Unsanitary conditions, disease, and threats
of fire were major concerns
• Disease was common place since there were
no sewers to carry waste and dirty water
away