US Markets early 19US Markets early 19thth CenturyCentury

• Rural American workers produced and Rural American workers produced and traded their goods with neighbors to traded their goods with neighbors to supply almost all of their needssupply almost all of their needs

• At local markets, families sold the At local markets, families sold the goods they produced goods they produced

• With the cash they earned, they With the cash they earned, they purchased goods they could not purchased goods they could not produce themselves (coffee, sugar, produce themselves (coffee, sugar, horseshoes)horseshoes)

US Markets expand mid US Markets expand mid centurycentury

• In the Northeast, the US became In the Northeast, the US became more industrialized with the factory more industrialized with the factory systemsystem

• The factory system changed the lives The factory system changed the lives of both workers and consumersof both workers and consumers

• Workers spent their earnings on Workers spent their earnings on goods produced by other workersgoods produced by other workers

US Markets expand mid US Markets expand mid centurycentury

• Farmers began to shift from self-Farmers began to shift from self-sufficiency (raising a variety of food sufficiency (raising a variety of food for their families) to for their families) to specializationspecialization, , raising one or two crops that they raising one or two crops that they could sell at home or abroad.could sell at home or abroad.

• These developments brought about a These developments brought about a market revolutionmarket revolution

Market RevolutionMarket Revolution

• People buy and sell goods rather than People buy and sell goods rather than making the goods for themselvesmaking the goods for themselves

• This revolution led to a striking change This revolution led to a striking change in the US economy and in the daily in the US economy and in the daily lives of Americans.lives of Americans.

• Goods and services multiplied while Goods and services multiplied while incomes roseincomes rose

• The economy was growing rapidlyThe economy was growing rapidly

Entrepreneurial spiritEntrepreneurial spirit• Capitalism – the economic system in Capitalism – the economic system in

which private businesses and which private businesses and individuals control the means of individuals control the means of productionproduction

• Means of production – factories, Means of production – factories, machines and land – which are used to machines and land – which are used to make a profitmake a profit

• Entrepreneurs – Businessmen who Entrepreneurs – Businessmen who invested their own money (capital) in invested their own money (capital) in new businesses knowing that they new businesses knowing that they risked losing their investment if a risked losing their investment if a venture failed, but they also stood to venture failed, but they also stood to earn huge profits if they succeededearn huge profits if they succeeded

Charles Goodyear 1800-Charles Goodyear 1800-18601860

• Purchased the rights of an Purchased the rights of an inventor who mixed rubber inventor who mixed rubber with sulfurwith sulfur

• Goodyear heated the mixture Goodyear heated the mixture which toughened into which toughened into permanent elasticpermanent elastic

• 1844 he received a patent for 1844 he received a patent for his process called his process called vulcanizationvulcanization

• Others stole and used his Others stole and used his processprocess

• He was deeply in debt when he He was deeply in debt when he dieddied

• His risk paid off for Americans, His risk paid off for Americans, but left him pennilessbut left him penniless

Resourcefulness & Experimentation

Resourcefulness & Experimentation

p Americans were willing to try Americans were willing to try

anything.anything.

p They were first copiers, thenThey were first copiers, theninnovators.innovators.

1800 1800 41 patents were 41 patents were approved.approved.

1860 1860 4,357 “ “ “4,357 “ “ “

American Entrepreneurs American Entrepreneurs

• Warren BuffetWarren BuffetGreatest Wealth – $66 Greatest Wealth – $66 Billion at age 82Billion at age 82First Job – Newspaper First Job – Newspaper delivery boydelivery boy

• Bill GatesBill GatesGreatest Wealth – $46 Greatest Wealth – $46 Billion at age 57Billion at age 57First Job – Congressional First Job – Congressional pagepage

• Michael DellMichael DellGreatest Wealth – $14.6 Greatest Wealth – $14.6 Billion at age 47Billion at age 47First Job – Dishwasher for First Job – Dishwasher for a Chinese restauranta Chinese restaurant

American EntrepreneursAmerican Entrepreneurs• Steve Jobs (RIP)Steve Jobs (RIP)

Greatest Wealth – $11 Billion at Greatest Wealth – $11 Billion at age 53age 53First Job – Gopher at Hewlett First Job – Gopher at Hewlett PackardPackard

• Oprah WinfreyOprah WinfreyGreatest Wealth – $2.7 Billion at Greatest Wealth – $2.7 Billion at age 58age 58First Job – Part time radio news First Job – Part time radio news broadcasterbroadcaster

• Mark CubanMark CubanGreatest Wealth – $2.3 Billion at Greatest Wealth – $2.3 Billion at age 54 Started aage 54 Started a computer computer consulting firm -- without having consulting firm -- without having ever owned a computer or taken ever owned a computer or taken a computer classa computer class

First Job – BartenderFirst Job – Bartender

Impact on Household Impact on Household EconomyEconomy

• America boosted its industrial output America boosted its industrial output especially in the northespecially in the north

• American agriculture flourished American agriculture flourished feeding workers in the industrial feeding workers in the industrial citiescities

• To meet new demands, farmers also To meet new demands, farmers also began to use mechanized farm began to use mechanized farm equipment produced in the factoriesequipment produced in the factories

Impact on Household Impact on Household EconomyEconomy

• Manufactured goods became less Manufactured goods became less expensive as technological advances expensive as technological advances lowered priceslowered prices

• Falling prices meant that workers on Falling prices meant that workers on farms and in cities became farms and in cities became consumers of new products not only consumers of new products not only for work but also for comfortfor work but also for comfort

Hand crafted vs. Factory Hand crafted vs. Factory mademade

A handcrafted clock A handcrafted clock cost $50.00cost $50.00

A factory made A factory made clock cost 50 centsclock cost 50 cents

Inventions and Inventions and ImprovementsImprovements

• Inventor entrepreneurs began to develop Inventor entrepreneurs began to develop goods to make life more comfortablegoods to make life more comfortable

• Production of clothing was aided by the Production of clothing was aided by the invention of the sewing machineinvention of the sewing machine

• Patented by Elias Howe in 1846, the sewing Patented by Elias Howe in 1846, the sewing machine was first used in shoe factoriesmachine was first used in shoe factories

• Isaac Singer’s treadle sewing machine led Isaac Singer’s treadle sewing machine led to factory production of clothingto factory production of clothing

• Clothing prices dropped by more than 75%Clothing prices dropped by more than 75%• Working people could now afford to buy Working people could now afford to buy

clothesclothes

Elias Howe & Isaac SingerElias Howe & Isaac Singer

1840s1840sSewing MachineSewing Machine

Instant CommunicationInstant Communication

• Joseph Henry developed the first Joseph Henry developed the first telegraphtelegraph

• Samuel F.B. Morse improved the Samuel F.B. Morse improved the devisedevise

• Morse was Yale educated where he Morse was Yale educated where he constructed batteries in chemistry constructed batteries in chemistry classclass

• Realizing he could not support Realizing he could not support himself as an artist, he continued his himself as an artist, he continued his scientific workscientific work

Instant CommunicationInstant Communication

• With an associate he built an With an associate he built an electromagnetic telegraph with 10 electromagnetic telegraph with 10 miles of wire wrapped around his miles of wire wrapped around his workroomworkroom

• In 1843, Congress granted Morse In 1843, Congress granted Morse $30,000. to build a test line between $30,000. to build a test line between Baltimore and Washington D.C.Baltimore and Washington D.C.

• Morse won international fameMorse won international fame

Samuel F. B. MorseSamuel F. B. Morse

1840 – Telegraph1840 – Telegraph

Cyrus Field & the Transatlantic Cable,

1858

Cyrus Field & the Transatlantic Cable,

1858

The telegraph cable linked the US to England

SteamboatsSteamboats

• Better and faster transportation became Better and faster transportation became essential to the expansion of agriculture essential to the expansion of agriculture and industryand industry

• In 1807, Robert Fulton ushered in the In 1807, Robert Fulton ushered in the steamboat era when his boat, the steamboat era when his boat, the Clermont, Clermont, made a 150 mile trip up the made a 150 mile trip up the Hudson River from New York City to Hudson River from New York City to Albany in 32 hours – very fast for the era.Albany in 32 hours – very fast for the era.

• By 1830,By 1830, 200 steamboats traveled the 200 steamboats traveled the nations rivers nations rivers

• Freight rates and voyage times were Freight rates and voyage times were slashedslashed

Robert Fulton & the Steamboat

Robert Fulton & the Steamboat

1807: The 1807: The ClermontClermont

Americans makes canalsAmericans makes canals

• The Erie Canal was the nations first The Erie Canal was the nations first major canal major canal

• Before the canal was built it cost 19 Before the canal was built it cost 19 cents a ton per mile to ship over landcents a ton per mile to ship over land

• By 1830, the cost had fallen to less By 1830, the cost had fallen to less than 2 cents a ton per milethan 2 cents a ton per mile

• Dozens of other canal projects Dozens of other canal projects started opening up the heartland of started opening up the heartland of America to world markets by binding America to world markets by binding the Northeast to the Midwest the Northeast to the Midwest

Erie Canal, 1820sErie Canal, 1820s

Begun in 1817; completed in 1825Begun in 1817; completed in 1825

Erie Canal SystemErie Canal System

Principal Canals in 1840Principal Canals in 1840

Emergence of RailroadsEmergence of Railroads

• Although shipping by rail cost more Although shipping by rail cost more than shipping by canal, railroads than shipping by canal, railroads offered the advantage of speedoffered the advantage of speed

• Railroads could operate during the Railroads could operate during the winter unlike the canalswinter unlike the canals

• By the 1840’s steam engines pulled By the 1840’s steam engines pulled freight at ten miles an hourfreight at ten miles an hour

• Unfortunately, train travel was not Unfortunately, train travel was not comfortablecomfortable

The “Iron Horse” (1830)The “Iron Horse” (1830)

1830 1830 13 miles of track built by Baltimore & 13 miles of track built by Baltimore & Ohio RROhio RR

By 1850 By 1850 9000 mi. of RR track [1860 9000 mi. of RR track [1860 31,000 31,000 mi.]mi.]

TheRailroad

Revolution,1850s

TheRailroad

Revolution,1850s

p Immigrant laborImmigrant laborbuilt the No. RRs.built the No. RRs.

p Slave laborSlave laborbuilt the So. RRs.built the So. RRs.

By 1859, railroads Carried 2 billion tons of freight each year

Clipper Ships 1845-1859Clipper Ships 1845-1859

The Flying Cloud sailed from New York City around Cape Horn to San Francisco in 89 days.

The fastest way to get to California during the Gold Rush

A Growing AmericaA Growing America

• By the 1840’s improved transportation By the 1840’s improved transportation and communications made America’s and communications made America’s regions interdependentregions interdependent

• Steamboats plied the Mississippi linking Steamboats plied the Mississippi linking North and SouthNorth and South

• The Erie Canal, railroads and telegraph The Erie Canal, railroads and telegraph wires linked the East and the Westwires linked the East and the West

• Arteries like the “National Road”, Arteries like the “National Road”, funded by Congress opened up western funded by Congress opened up western traveltravel

First Turnpike- 1790 Lancaster, PA

First Turnpike- 1790 Lancaster, PA

By 1832, nearly 2400 mi. of road By 1832, nearly 2400 mi. of road connected most major cities.connected most major cities.

Cumberland (National Road), 1811

Cumberland (National Road), 1811

Conestoga Covered WagonsConestoga Covered Wagons

Conestoga Trail, 1820sConestoga Trail, 1820sCommon form of transportation formoving west

Regional SpecializationRegional Specialization

EAST EAST Industrial - Industrial - manufactured textiles and manufactured textiles and machinery (hired workers)machinery (hired workers)

WEST WEST The Nation’s The Nation’s “Breadbasket” produced grain “Breadbasket” produced grain and livestock shipped to feed and livestock shipped to feed factory workers in eastern cities factory workers in eastern cities and Europeand Europe

SOUTH SOUTH Cotton traded to Cotton traded to England and New England England and New England (worked by slaves)(worked by slaves)

John Deere & the Steel Plow(1837)

John Deere & the Steel Plow(1837)

Allowed farmers to replaceoxen with horses for plowingland more efficiently

Cyrus McCormick& the Mechanical Reaper:

1831

Cyrus McCormick& the Mechanical Reaper:

1831

Permitted one man to do the work of 5 hired men. An ambitious farmer could shiftfrom subsistence farming togrowing cash crops.

Regional Specialization - East

• New York City became the central New York City became the central link between American agriculture link between American agriculture and European marketsand European markets

• Rise of manufacturing led to the Rise of manufacturing led to the production of better goods at lower production of better goods at lower pricesprices

• These goods became affordable for These goods became affordable for ordinary Americansordinary Americans

Regional Specialization – Midwest Farming

• Many people moved to farm the fertile Many people moved to farm the fertile soil of the Midwest soil of the Midwest

• It took hard work to clear the land and It took hard work to clear the land and make it fit to cultivatemake it fit to cultivate

• New inventions like the steel plow and New inventions like the steel plow and McCormick Reaper made life easierMcCormick Reaper made life easier

• Transportation brought manufactured Transportation brought manufactured goods and carried crops to markets in goods and carried crops to markets in the Eastthe East

Regional Specialization – Southern Agriculture

• The South remained agriculturalThe South remained agricultural• Many Southerners looked at the Many Southerners looked at the

industrialization of the Northeast with industrialization of the Northeast with disfavordisfavor

• The South usually lacked the capital The South usually lacked the capital ($) to build factories because they ($) to build factories because they had invested so much in land and had invested so much in land and slavesslaves

Communication Challenge Communication Challenge

• On the next slide you will see 9 On the next slide you will see 9 images of devises that have changed images of devises that have changed the way we communicate or get the way we communicate or get informationinformation

• With your group members, try to With your group members, try to name the devisename the devise

• With your group members, put the With your group members, put the letter of the devise next to the date letter of the devise next to the date you think it matchesyou think it matches

• Good LuckGood Luck

A

B

C

E

F

G H

D

Telegraph 1844

Bell phone 1876

Radio 1920

Transistor radio1957

Walkie Talkie1940’s

CB 1970

1982 Cell phone

Apple 1976Sold for $666.66

I

Bell phone 1907