The Market Revolution

Specialization Mid-1800s –Farmers changed from self- sufficiency to specialization –Raised 1 or 2 cash crops, bought household goods from stores

Market revolution Before mid-1800s: –Markets sold very few items –People made most items & bought what couldn’t be made at home

Market revolution By mid-1800s: –People bought items others made –Specialization created efficiency –Economy grew quickly

Capitalism People & private businesses own means of production –Use them to create profits –Factories, machines, land, $

Capitalism Free enterprise –Right to own a business Entrepreneur –Risk-taker working for profits –Start own business Could become fabulously rich Could die penniless in a gutter

New inventions Specialization led to lower prices –People could afford goods for luxury & convenience Household inventions –Made chores easier

Agricultural inventions Many went from farm to factory More food from fewer farmers –Seed drill & metal plow –Mechanical reaper

Communication inventions Telegraph –Invented by Samuel Morse –1 st invention giving ability to communicate long distance

Transportation inventions Most important reason: –Shipping goods cheaper & easier Steamboats –Allowed people to get back upstream quickly

Transportation inventions Canals –Shipping on water much cheaper than shipping over land –Ships went farther – made steamboats more effective

Transportation inventions Railroads –By 1860 became #1 way to travel –MUCH faster & cheaper than any other method

New markets Transportation allowed regions to specialize –Could buy from elsewhere

Southern agriculture South looked down on northern big city factories –Filthy & overcrowded –South didn’t have $ to build factories anyway –$ tied up in farmland & slaves

Southern agriculture Main cash crops: –Cotton, rice, tobacco 80% of cotton was sold to UK –Dependent on British economy – if Brits don’t buy, south is sunk

Northern industry Transportation made north rich –Shipped southern & western goods to foreign markets –Made $ as middlemen Factories grew much bigger

Midwestern farming Inventions made it easier to grow crops Midwestern farms started growing cash crops –No longer subsistence farming