Transcript Chapter 8 Section 1

Inventions and Innovations
Chapter 8 Section 1
Industrial Revolution
• A long term effort to
increase production by
using machines rather
than the power of
humans or animals
– Began in Britain in the
1700s
• Later spread to the U.S.
American inventions and new technologies that
came about during the Industrial Revolution
• Steamboats, cotton
gins, steam shovel,
interchangeable parts,
mechanized cotton mill,
canning factory, internal
combustion engine,
electromagnet, etc…
Interchangeable Parts
• All parts of a product
are made to an exact
standard
– Products are no longer
unique
Cotton Gin
• A machine that
separates the seeds
from raw cotton fibers
– 1 worker could now
clean 1,000 pounds of
cotton a day
Patent
• A license from the
government giving an
inventor the sole right
to make, use, and sell
an invention for a
certain period of time
Market Revolution
• A change in the way
American made,
bought, and sold goods
– More Americans were
buying and selling goods,
and borrowing and
circulating money
Manufacturing
• The use of machinery to
make products
– Began in New England
with use of water power
Centralized
• A central factory where
all the tasks involved in
making a product were
carried out
– Using this method, a
New England textile mill
produced 4 million yards
of cloth in 1817 and
increased to 323 million
yards in 1840
What are the advantages of a
centralized production process?
• Dramatically increased
production
• Brought great
prosperity to the
economy in the North
Free Enterprise System
• An economic system in
which private
companies compete for
profits
– Also known as capitalism
• Rewards people who can
find better, faster, and
more efficient ways of
running their business
– Encourages innovation
and creating new
industries, job and
wealth
Specialization
• A system in which a
worker performs just
one part of an entire
production process
– Helped to maximize
production
Investment Capital
• Money that business
spends in hopes of
future gain
– New equipment, new
buildings, new workers,
etc…
The effects of manufacturing and
investment capital on the U.S. economy.
• Made more goods
available for purchase
so money became more
widely used
• Producers of goods
were not the people
that sold them
• Items people used to
make themselves were
now available for
purchase
Bank Note
• A piece of paper that
banks issued to their
customers
– People used bank notes
to pay for goods and
services
– Could be exchanged for
specie (gold or silver)
• Business owners were
making enough money
to improve and expand
their businesses
• Economy expanded
• New wealth created
How did banks help create economic
growth?
• Provided money
entrepreneurs needed
to build new factories
or expand existing
facilities
• Loaned out money that
depositors had placed
in banks
– These loans would be
paid back with interest
Innovations in transportation, and two in
communication.
• Transportation
–
–
–
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Steam power
New canals
New and better roads
railroads
• Communication
– Newspapers
– Magazines
– More post offices