2.  The factory system  Continental expansion  Commercial agriculture

3.  Cheaper goods were produced which increased peoples’ standard of living.  Artisan skills were lost.  Immigrants, women, and children were exploited as a labor source.  Accumulation of wealth widened.  Thousands moved to urban areas looking for factory jobs.  Social problems increased.

4.  Government protection of rights to inventions  Government support for crucial developments in transportation  Development of corporations with limited liability  An improved educational system  Improved markets and cheap labor with the move from farm to factory  The Embargo and War of 1812 stimulating a need for domestic manufactures  Eli Whitney’s concept of interchangeable parts  Samuel Slater’s mill  Oliver Evan’s steam engine  Increased immigration to provide cheap labor  Government control over interstate commerce and government protection of the sanctity of contracts (or corporate charters)  New sources of investment capital during War of 1812  Stable currency under the Second Bank of the United States

5.  In the early years of the nineteenth century, government policies disrupted commerce with foreign nations; however, the government, at the same time, created a climate that served as a catalyst for early industrialization.