Manifest Destiny & Expansion American History I - Unit 7 Ms. Brown

7.1 – The Market Revolution

The Market Revolution Shift to buying/selling goods instead of making everything yourself, led to the growth of the American economy Rise in consumerism – the buying of goods for use Consumers – people who are the final users of a product or good How? Industrial Revolution – factories and mass production of goods Specialization on farms – large crops and harvests Rise of capitalism New inventions Increased communication Improved transportation

Specialization in Farming Specialization – growing 1-2 crops to sell at home/abroad for a profit Self-sufficiency  profit! Used money made by selling crops to buy goods… Manufactured goods from the North Other food from the South and West

Specialization in Farming How did specialization in farming contribute to the Market Economy? Farmers could sell their crops to other areas of the country and in return act as consumers to buy goods from other people/industries Led to growth in the US economy (more people buying/selling)

Rise of Capitalism Capitalism – the economic system in which private businesses/people control and own the production/manufacture of a good and sell it to earn profits Requires “capital” – the money property, machines, and factories needed to make the good. Relies on competition in a free market (less gov’t regulation) Entrepreneur – a wealthy investor that risked money to fund new industries Risked money if the company/industry failed Potential to earn a lot of money if the company/industry was successful

Rise of Capitalism Example… 1813 – Francis Cabot Lowell and other Boston investors/entrepreneurs put up $400,000 to form the Boston Manufacturing Company that produced textiles. $400,000 = capital Owned the means of production for the textiles in those factories Made a lot of money selling the textiles  the investors/entrepreneurs got a “return” on their investment (a piece of the profits) If the company had failed, the investors/entrepreneurs would have lost their money.

Rise of Capitalism How did the rise of capitalism contribute to the Market Economy? Capitalism allowed for individuals to buy and sell goods according to the supply and demand of the good. Capitalism thrived on competition which led to growth of the economy as new industries emerged. Increased production in factories + competition  lower prices (easily make a lot of 1 thing for less money Birth of Wall Street and investors

New Inventions During the mid-1800s, new inventions with the help of entrepreneurs contributed to the growth of the Market Economy  more goods faster! Inventor and Year Invention Charles Goodyear (1839) Vulcanized rubber – a rubber that did not melt or freeze, perfect for protecting boots (later tires) Elias Howe (1846) Sewing machine – used in factories to mass produce clothes/shoes John Deere (1837) Steel plow – a steel device that made it possible to plow and plant crops in the rocky Midwest soil Cyrus McCormick Mechanical reaper – a machine that quickly cut and harvested wheat

New Inventions

New Inventions How did new inventions contribute to the Market Economy? New farming equipment made it easier to mass produce food which could be bought and sold in other parts of the country. The steel plow made farming in the rocky mid-west soil possible. The sewing machine was eventually developed for use in factories  large scale production of clothes/shoes! People could buy clothes/shoes already made, instead of making them for themselves. Technological advances = more manufactured items quicker and cheaper = lower prices = American people become CONSUMERS! (buyers of goods)

Increased Communication 1837 – Samuel F.B. Morse invented the telegraph A device that sent instant electrical messages over copper wires Message = a telegram Telegrams were typed in Morse Code (a code of transmissions to communicate information through the telegraph)

Morse Code

Increased Communication How did the telegraph contribute to the Market Revolution? The telegraph REVOLUTIONIZED communication. People could communicated instantly over large distances. Before the telegraph, you could only communication as fast as horses could deliver your letters. Businesses used the telegraph to send orders and relay up-to-date info on prices and sales. Railroads used the telegraph to keep trains on schedule and report delays. By 1854 (~15 years after its invention), 23,000 miles of telegraph wire crossed the country.

Improved Transportation Early 1800s – steamboats become popular for transporting goods and people on rivers and canals A steamboat did not rely on the river current or the wind – it was powered by steam engines that could turn and power the boat in any direction 1825 – Erie Canal finished Connected Atlantic Ocean to Great Lakes Soon, more canals were completed around the country Easier and cheaper to float heavy materials on water

Improved Transportation Canals were very popular until the 1860s  RAILROADS! Could operate in the winter when the canals were frozen More expensive than canal shipping, but much faster. Brought goods to people who lived away from water. Passengers enjoyed the “high speed” of trains (10 mph) and trains were more comfortable than steamboats By 1850, 10,000 miles of rail crossed the country

Improved Transportation How did canals and the railroad contribute to the Market Economy? Goods and people could be moved quickly and reliably across the country. Quicker and more available goods  more consumerism in America Connected, but also separated the US regions… Connected – North, South, and West could get goods from the other Separated - Each region specialized in just a few activities and had different economic and political needs

The Market Economy – The Big Picture NORTH Manufactured textiles and machinery in factories (sewing machine, vulcanized rubber) Investors, entrepreneurs, capitalism, Wall Street Crop specialization - Cotton, tobacco SOUTH Crop specialization - harvested wheat and raised cattle WEST (mechanical reaper, steel plow) Telegraph Canals Railroad