3. The Changing Economy
The United States’ economy was largely
bolstered by international trade.
The goods sold by the US were primarily cash
crop products e.g. tobacco and grain.
With the Embargo Act of 1807 and the War of
1812, overseas shipping from the United States
began to decline.
4. The Beginning of Industrialization
There have been multiple Industrial Revolutions
in the United States.
The first began in late 18th century (1790s)
The Reason the United States began
Industrializing: The lack of access to foreign
goods.
5. New England
Agriculture in New
England was not very
profitable.
In 1793, a British
immigrant, Samuel
Slater established the
first textile (finished
cloth) factory in
America.
This began an era of
mass-production of
cloth in New England.
6. Eli Whitney
(1765-1825)
Eli Whitney Jr. was a
Massachusetts-born inventor that
pioneered many innovations in
American life.
Whitney is most famous for two
innovations which made significant
impacts on the United States’
economy.
7. Eli’s New Inventions
Interchangeable Parts The Cotton Gin (1794)
Before the invention
of interchange
machine parts, all
parts of a machine
had to be made by
hand.
Having uniform
(exactly alike) parts
for a machine made
production and
repairs much easier.
8. The Growing Economic Divide
North South
Northeasterners began
investing their money in
manufacturing
operations.
Due to a decline in
large agricultural
operations, Northern
states began to abolish
slavery in their states.
By 1804, almost all
Northern states had
abolished slavery.
Cash crop agriculture was
still the major industry of
the South.
With the invention of the
cotton gin, cotton became
another viable cash crop
in the new southern states
like Louisiana and
Mississippi.
This led to the expansion
of slavery in the
American South.
9. The American System
To combat the growing cultural differences
between the North and the South and create a
self-sufficient economy, James Madison
proposed:
Developing transportation systems to
improve commerce between he states.
Tariffs on foreign goods.
Strengthening the National Bank (which
had weakened under Thomas Jefferson)