9-1 THE MARKET REVOLUTION

Pgs. 254-259

U.S. Markets Expand

Farmers began to shift from self-sufficiency – raising a wide variety of food for their own families – to specialization, raising one or two crops that they could sell at home or abroad.

Brought a market revolution – people bought and sold goods rather than making them for themselves.

The Entrepreneurial Spirit

Economic growth depended on capitalism, the economic system in which private businesses and individuals control the means of production and use them to earn profits Examples: factories, machines and land

Entrepreneurs invested their own money in new industries. Huge risk

Impact on Household Economy Farmers began to use machines to keep

up with the demand for goods Cheaper prices made products available

to all people.

Shoes and Sewing Machines

Goodyear developed vulcanized rubber in 1839 Didn’t freeze in cold weather or melt in hot

weather Elias Howe patented the sewing machine

in 1846. Led to factory production of clothing

making it cheaper so all people could buy clothing at the store.

Instant Communication

Samuel F. B. Morse created the telegraph in 1837.

By 1853 23,000 miles of telegraph wire crossed the country.

The Transportation Revolution Need for better and faster

transportation. Steam powered boats became very

popular and cut travel time in half. Water was very important for

transportation, and if there was no water then canals were built.

Trains were more expensive, but were faster and ran in winter.

New Markets Link Regions

Northeast was the center of American commerce. New York City, New York

Farming was centralized in the Midwest. John Deere invented the steel plow to help farmers

prepare the land faster. Cyrus McCormick invented the mechanical reaper

allowing farmers to do the work of 5 people. Southerners didn’t want to industrialize and were

agriculturally based. Even if Southern plantation owners wanted factories, they

were not financially able to do so because they had invested so much in their plantations.

People wanted to move to the West.