Growth and Expansion 1790 1825 Chapter 10 Economic

Growth and Expansion 1790 -1825 Chapter 10

Economic Growth Section 1 Chapter 10 • The Industrial Revolution began in the United States around 1800 • More than 65% of Americans in 1820’s live on farms. • People left their homes and farms for work in the mills and earn wages • Technology increased during the Industrial Rev. —Scientific discoveries that simplified work

• Free Enterprise—American Economy (people are free to buy, sell, and produce whatever they want) • New England becomes the center of Industrial Growth – It had more workers, it had many rivers & streams, it was close to other resources and New England had Capital $$$$$ • Western Farmers north of the Ohio River raised pork and cash crops • New York, Boston, and Baltimore become centers of commerce and trade

• Pittsburgh, Cincinnati, Louisville profited from their location on major rivers. • Merchants were essential to the Industrial Revolution – Their capital was important for developing machinery and building industries. • Inventions revolutionized the textile industry – The Spinning Jenny – The Water Frame – The Power Loom • Eli Whitney invented the Cotton Gin

• Oliver Evans developed a mechanical flour mill • In order to protect the rights of inventors in 1790 Congress passes the Patent Law • The Industrial Revolution started in Britain – The technology made its way to the United States by workers memorizing designs and then duplicating them in the U. S. A – Samuel Slater was the most famous person to memorize British factory system

• Francis Cabot Lowell opened a textile plant in 1814 in Waltham, Massachusetts – The new system Lowell employed became know as the FACTORY SYSTEM • A System of bringing manufacturing steps together in one place to increase efficiency. • 80% of the workers in Lowell’s factories are girls

• Eli Whitney pioneered the use of interchangeable parts. – Identical machine parts that could be quickly put together to make a complete product. Cotton Gin • The Industrial Revolution caused the demand for cotton to grow

• Both the North and the South profited from the prosperity of cotton 1. Cotton's huge profitability caused planters to buy more slaves and more land to take advantage of the economic potential a) 1800 18 million lbs. of cotton exported ($5, 000 value), 7% of total exports b) In 1830, 300 million lbs. of cotton exported ($30, 000 value), 41% of total exports c) In 1860, 1, 700 million lbs. of cotton exported ($191, 000 value), 57% of total exports 2. 80% of the world's cotton came from the South in 1860. Most went to factories in England

• Mostly small investors financed the new industries during the Industrial Revolution Congress charted the Second Bank of the United States in 1816 – Strengthen the nation’s economic independence • Corporations and stocks help create large businesses

• Problems came with the growth of towns and cities – Unsanitary conditions, disease, and threats of fire were major concerns • Disease was common place since there were no sewers to carry waste and dirty water away