Early market economy

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Early market economy

  1. 1. Industry & Commerce 1800-1860 1830’s - Development of Market Economy The Early Market •  Decline of traditional subsistence agriculture Revolution Mechanization Predominance of Cash & Invention (rise of wage labor) AP United States History The Market Economic Specialization Growth Economy Onset of “Boom & Bust” Cycle Industry & Commerce Industry & Commerce 1800-1860 1800-1860Prosperity “Boom & Bust” Prosperity Regional Specialization Cycle North: Industry & Finance South: Plantation & Cotton Production Contraction Expansion West: Commercial Farming Recession Northern domination & development of East - West transportation network Speculation → bank collapses Depression Bankrupcies → unemployment Internal Improvements Erie Canal – 363 Miles long; 4 feet deep Buffalo to New York – 10 Days 1
  2. 2. Old Road Tom Thumb Locomotive : Illustration of a Race Between a Locomotive and a Horse-Drawn Car (1830) Industry & Commerce 1800-1860•  Significant impact of Railroads on the economy –  increased agricultural development in West •  aided by John Deere’s steel plow & McCormick reaper –  benefited cities; especially Chicago –  stimulated the iron industry & banking –  economic linking of N & W 2
  3. 3. Industry & Commerce 1800-1860 Foreign Trade•  Generally a net importer (exporter of raw materials)•  Whaling•  The Clipper Ship: only 3 months to CA•  Steam Ships: eclipsed clipper ships & lowered shipping rates (Cunard Lines) Industry & Commerce 1800-1860 The Growth of Northern Industry •  Rapid expansion •  The factory system(Lowell System) –  Textile mills created ‘ready to wear’ –  Brooks Brothers 1818 •  Importance of PA coal •  Numerous invention World’s Largest Steam Boat, the American Queen –  Street car; sewing machine; yale locks, safety pin New Orleans to Louisville – One week (previously three months) 1000 accidents 1811-1850 (30% of total number of boats •  Increased incorporation 57% snags; 21% explosion; 17% fire…) •  Still agriculture dominated 3
  4. 4. Industry & Commerce 1800-1860 Federal Aid for the Development of the Market Economy•  Post Offices & Telegraphs (S. Morse 1844)•  Patent Law•  Internal Improvements•  Judiciary (Commerce Clause) –  Charles River Bridge v. Warren Bridge •  Did a corporate charter imply a monopoly?•  Corporations (Limited Liability) 4

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