The Nation’s Economy Before the Industrial Revolution!

The Domestic System!•  Before 1820, nearly all

goods in American were made by hand in peoples’ homes!

•  Through the domestic system, also called the “putting out system” or the cottage industry, people made goods in their own home for merchants !

The Domestic System!•  In this economic system

merchants would buy raw materials and employ dozens of farm families to create the products!

•  Once the products were finished, the merchant picked up the goods, paid the families, and sold the goods at market!

The “Putting Out System” !(The Cottage Industry or the Domestic System) !

The American System of Henry Clay!•  During the War of 1812

Americans were cut off from trade with Europe and forced American manufacturing to increase, beginning a trend toward a more industrialized society !

•  After the War of 1812, Henry Clay and other nationalists proposed the American System !

The American System of Henry Clay!•  The American System

involved making the U.S. less economically dependent on Europe by encouraging the production of goods in the U.S. that had previously been imported!

•  The plan also called for tariffs to protect American industries from foreign competition !

Predicting the Effects of the Industrial Revolution on the North and South!

•  Predict how increased manufacturing will affect the North and South. What effects with this have? !

•  Predict how new technology, machines and increased manufacturing will affect peoples’ standard of living. What changes would you expect to see? !

•  Predict how various groups within the U.S. will be affected by new innovations and increased manufacturing (wealthy whites, poor whites, immigrants, Native Americans, free Blacks, enslaved people, etc.).!