Transcript The Market Revolution

The Market
Revolution
Before the Industrial
Revolution

Remember, before the Industrial Revolution
(early 1800’s) most Americans lived on
farms and produced their own goods or
traded with neighbors.
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Farm families were self-sufficient—grew crops,
raised animals for food, made their own clothing,
candles, soap, etc.
At local markets they sold wood, eggs, butter, etc.
for cash which they used to buy coffee, tea,
sugar, or horseshoes.
After the Industrial
Revolution
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But, after the Industrial Revolution came to
America things slowly began to change.
The U.S. (especially the Northeast) became
more industrialized with the rise of textile mills
and the factory system.
People began spending their earnings on
goods produced by other workers.
Workers and farmers became specialized.

Making or raising one specific item or crop that
they could then sell.
The Market Revolution
This led to what is called the Market
Revolution.
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This had a huge impact on the U.S. economy
and in the daily lives and culture of
Americans.
Effects of the Market
Revolution
1. People bought and sold goods rather
than making them for their own use—
used cash or credit!!
2. Changes manufacturing from at home
to in the factories—leave home to go to
work!!
3. People move to live in the cities for
jobs—urbanization (especially in the
North).
Capitalism

The economic system in which private
businesses and individuals control the
means of production—such as factories,
machines, and land—and use them to earn
profits.
Entrepreneurs

Individuals who invest (risk) their own
money in new industries.
An American
Entrepreneur

One example of capitalism at work with an
American entrepreneur is Francis Cabot
Lowell.

Formed the Boston
Manufacturing
Company that
produced textiles.
Lowell’s Factory
System
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Built a huge factory with living
accommodations on-site.
Hired young girls to work
in the factory and live in
the dorms there.
Low wages, poor working
conditions = high worker
turnover rates.

But the workers were easily
replaced!
Revolution:
New Inventions
The Sewing Machine,
Elias Howe, 1846

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Revolutionized the clothing
business
Causes for a greater
demand for cotton and wool
Significance: Takes the
making of clothes out of the
home and into factories
An Economic
Revolution:
New
Inventions
 Invention of the telegraph—Samuel F.B.
Morse
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1844, Morse strung a wire 40 miles from
Washington to Baltimore
Significance: Better
communication over the
country and businesses
used the telegraph to transmit
orders and relay up to date
information on prices/sales.
An Economic
Revolution:
New
Inventions
 Charles Goodyear creates a process of
vulcanizing rubber which was then put to
over 500 different uses.
An Economic
Revolution:
New
Inventions
Improvements
in farming equipment

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John Deere invents a
steel plow that could break
the thickly matted soil of
the West.
Revolution:
New Inventions

Improvements in farming equipment

Cyrus McCormick (1830’s)
introduces the mechanical
mower-reaper that could
do the work of 5 men.
An Economic
Revolution:
Improvements in
Transportation
 Toll roads and turnpikes
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Canals (success of the Erie Canal)
The Steamboat
Railroads
Boats Before…

What types of boats were being used
before?
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Keelboats and
flatboats = less
than 1 mile per
hour; very
expensive
 Hard to go
upstream!!
The Steamboat
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In 1807, Robert Fulton developed the first
steam driven boat; called it the Clermont.
Left NYC and churned 500 miles up the
Hudson River to Albany in 32 hours.
Significance of the Steamboat:
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Changed all of America’s navigable rivers into
2-way transportation
Could carry more people & goods
Travel time was cut by 2/3 and costs by 1/2
Railroads
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Railroads represent the most significant
contribution to the transportation of
long distances (until the airplane).
Trains were faster, more reliable, and
cheaper than canals to construct, and did
not freeze in the winter.
Able to go almost anywhere; defied terrain
and weather--didn’t need water
The Railroad Explosion
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First railroad in the U.S. = the Baltimore and
Ohio (the B&O) in 1828.
By 1860, the U.S. had 30,000 miles of railroad
track.
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Most ran east to west—linking farms to the
factories.
¾ of the railroad track was the Northern part of the
country!