9.1 Market Revolution

Ch. 9 Section 1

The Market Revolution

U.S. Market Expands

​Early 1800s: rural Americans were self-sufficient; only bought what they couldn’t make

– Grew crops and animals for food

– Made own clothing, candles, soap – Sold wood, eggs, butter for cash

– Cash used to purchase coffee, tea, sugar, horseshoes they couldn’t produce themselves

Industrialization signaled a shift to specialization and a market revolution

• Workers spent their earnings on goods produced by other workers

• Farmers shifted from self-sufficiency to specialization- raising one or two crops to sell

• This leads to a Market Revolution- the buying and selling of goods with others

The Market Revolution

• The amount of goods and services increased

• Incomes increased

• In the 1840s the US economy grew more than it had in the previous 40 years

Entrepreneurial Spirit

• Due to the Market Revolution, economic growth now depends on capitalism- individuals or businesses control the means of production to earn a profit

• New businesses were funded by entrepreneurs

The Economic Revolution

• By changing the manufacturing, transportation, and communication an Economic Revolution began

• The cost to build a clock in 1800 was $50-- by 1850 was $0.50

• The costs of clothing dropped 75% during the revolution-- A $10 shirt would cost

​Sent messages via Morse code

Mostly used by RR companies to notify of changes or danger

By 1854 23,000 miles of wire crossed the country

Telegraph- Samuel F.B. Morse

​Sped up the production from hand-sewn items

Howe invented the machine, Singer added the foot treadle

Sewing machine- Elias Howe, I.M. Singer

Open Ended

What new forms of transportation or travel emerged in the early to mid 1800s?

The Economic Revolution- Transportation

• 1807 Robert Fulton's Steam boat makes its way UP river 150 miles in 32 hours

• By 1830 200 steamboats were in use

• Canals became significant; grew from 100 miles in 1816 to 3,300 miles in 1841

• Railroads overtook the canals by 1860 and was the main use of transport and trade

Multiple Choice

The cost of transporting goods on the Erie Canal dropped from 19c per mile in 1817 to __c per mile in 1830.

• 2c

• 6c

• 10c

• 15c

Open Ended

Why did railroads replace the canal systems?

Why did railroads replace the canal?

Faster,

Can operate in winter,

Can deliver inland

The Economic Revolution- RR

• Safety increased, costs to travel/ship dropped

• Regions begin to specialize in products

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New Markets Link Regions

• South- Agriculture

• West- Livestock

• North- Industrial

• Also to major cities like NYC to buy-sell with Europe

• Only 14% of workers were in industry, but production was higher than ever before

New Markets-farming

• Farmers used new mechanized technology

• Mechanical Reaper allows a farmer to do the work of about 5-8 workers

• 1837 blacksmith John Deere invented the steel plow and took less animal power to operate