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Expanding Markets and Moving West
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Technological changes create greater interaction
and more economic diversity among the regions of
the nation.
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The Market Revolution
U.S. Markets Expand
Changing Economic Activities Early 1800s farm
families self-sufficient only buy what cannot
make Mid-century farmers begin
specializationraise 1or 2 cash crops Market
revolutionpeople buy and sell goods rather than
make them
The Entrepreneurial Spirit Capitalismprivate
control of means of production, used for
profit Business capital (money, property,
machines) fuels growing economy Entrepreneurs
invest own money in new industries great loss,
profit
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Capitalism

• Capitalism hasnt always been like the way it is
  today. Throughout the 1800s, it was mainly
  dominated by small family-owned firms. In 1830
  the biggest company in the world was the Cyfartha
  iron company, worth about 2 million, with 5,000
  employees. A hundred years later the biggest
  company, U.S. Steel, was worth 2.3 billion, and
  employed 250,000 people. Today, the worlds
  largest company is the energy producer Royal
  Dutch Shell. It raked in a staggering 458
  billion in revenue in 2008.

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continued U.S. Markets Expand

• New Inventions
• Inventor-entrepreneurs develop new products
• Charles Goodyear creates vulcanized rubber in
  1839
• Elias Howe patents sewing machine I. M. Singer
  adds foot treadle
• Factory production of clothing prices drop by
  over 75

• Impact on Household Economy
• Farmers begin using mechanized farm equipment
  boost industry output
• Technology lowers cost of factory items workers
  become consumers

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The Economic Revolution
Impact on Communication 1837, Samuel F. B.
Morse develops electromagnetic telegraph -
messages tapped in code, carried by copper
wire - businesses, railroads transmit
information In 1843, Congress agreed to pay for
the construction of the first telegraph line,
from Baltimore to Washington. On May 24, 1844,
the first message was sent across the wires
What hath God wrought?a quotation from the
Bible.
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continued The Economic Revolution
Impact on Transportation 1807, Robert Fultons
steamboat goes 150 miles up Hudson in 32
hours By 1830 steamboats on western rivers and
canals cut freight costs, speed travel, carry
heavy machinery and raw materials Canals
connect Midwest farmers to Northeast and world
markets

• Emergence of Railroads
• 1840s, shipping by railroad much costlier than by
  canal
• Railroads faster, operate in winter, go inland
• Early train travel uncomfortable for passengers
• By 1850s, railroads expand, cost drops, safety
  increased

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Birth of the Railroads

• Before the opening of the first major railway
  line, the Liverpool Manchester in 1830, there
  were fears it would be impossible to breathe
  while travelling at such a velocity, or that the
  passengers eyes would explode due to having to
  adjust to the motion. The first moving picture,
  "The Arrival of a Train at La Ciotat Station,
  was shown to an audience in France in 1895. When
  the film was first shown, the audience was so
  overwhelmed by the moving image of a life-sized
  train coming directly at them that people
  screamed and ran to the back of the room.
  Hellmuth Karasek in the German magazine Der
  Spiegel wrote that the film "had a particularly
  lasting impact yes, it caused fear, terror, even
  panic. https//www.youtube.com/watch?v1dgLEDdFd
  dk

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New Markets Link Regions

• Northeast Shipping and Manufacturing
• Canals, railroads turn Northeast into center of
  American commerce
• New York City central link between U.S. farms and
  European markets
• Great rise in manufacturing more, better, less
  expensive goods

Midwest Farming John Deere invents steel plow
farmers replace oxen with horses Cyrus
McCormick invents mechanical reaper 1 farmer
can do work of 5 Farmers shift from subsistence
farming to growing cash crops
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continued New Markets Link Regions

• Effect of Regional Links
• Improved transportation, communication make
  regions interdependent
• Growing links lead to development of regional
  specialties

• Southern Agriculture
• Most of South agricultural relies on cotton,
  tobacco, rice
• South lacks capital for factories money tied up
  in land, slave

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