Industrial and market revolutions

Industrial and market revolutions

Technology changes America

Big ideas for today

• technology increases supplies and resources

• markets get bigger from technology and infrastructure

• Investors in North and South need each other

• Northern and Southern economies growing differently

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Multiple Choice

What is the supply and demand model?

• less supply means people want less of a good or service

• prices are determined by how much of a good or service people are willing to make and sell and by how much of it people want to buy

• more demand mean more people make a good or service

• people demand too much and supply too little

Technology changes farming

• steel plow and mechanical reaper -- faster to plant and harvest

• new methods for feeding and caring for livestock -- more meat

• new methods for planting and rotating crops -- more harvest

• lower the opportunity cost of farming and increases supply

Multiple Choice

How would lowering the opportunity cost of farming change the economy?

• farmers produce more goods with less work

• more people want to be farmers

• fewer people want to be farmers

• farmers have to work more to produce less goods

Multiple Choice

How would increasing the supply of farming goods change the economy?

• Food is more expensive because people can grow more variety

• Food is cheaper and more people need to be farmers

• Food is cheaper and fewer people need to be farmers

• Food is more expensive because farmers need to buy new equipment

Infrastructure makes the market bigger

• Fed gov builds roads and canals = easier for farmers to sell goods further away

• Mississippi river connects most of the continent to American markets

• Steamboats can travel either direction on a river

• Railroads can transport lots of heavy things cheaply

• Telecommunication invented - telegraphs can send messages across wires almost instantly

Multiple Choice

How does a bigger market change the economy?

• less scarcity

• bigger supply for consumers

• bigger demand for goods and services

• all of these

Industrial revolution - the factory system

• work historically done by skilled laborers replaced with machines or factory practices

• interchangeable parts - goods are designed to be identical and easily replaceable

• groups of unskilled/less-trained workers focused on small, repeatable tasks

• different worker groups did different small tasks

• large groups of unskilled workers quickly produced lots of goods

• replaced skilled workers who would slowly produce few goods

Multiple Choice

How would the factory system change the economy?

• Unskilled laborers make more money

• More people needed for farming and gathering resources for factories

• Skilled laborers make more money

• More jobs, cheaper goods, and lower wages

Capital changes the North and South

• Capital = money and resources invested into business

• Capital in the North focused on building factories = this created lots of low-paying jobs producing many goods and services

• Capital in the South focused on building slave plantations = few jobs producing one good (cotton)

• Capital in the North relied on Southern investments (insurance for slave plantations, cotton for cloth factories, etc.)

• Capital in the South relied on Northern investments (banking, goods from factories, etc.)

Multiple Choice

How is capital changing the different regional economies?

• South is industrializing, North is staying agricultural

• North is getting richer, South is getting poorer

• Northern economy is growing, Southern economy is shrinking

• both regions depend on each other, but the Northern economy is producing more kinds of goods and services