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

2. 7.1 – The Market Revolution

3. 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

4. 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

5. 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)

6. 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

7. 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.

8. 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

9. 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

10. New Inventions

11. 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)

12. 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)

13. Morse Code

14. 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.

16. 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

17. 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

19. 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

20. 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