The Market Revolution, Part I: Economic Change 1790s-1850s.
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Transcript of The Market Revolution, Part I: Economic Change 1790s-1850s.
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The Market Revolution, Part
I:Economic Change
1790s-1850s
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The US in 1800Jefferson’s republic – rural and agrarian• 93% lived in rural areas (<2500 people)• 84% were farmers
o large majority: semisubsistence farmers• limited access to markets• produced little more than necessary• neighborhood interdependence
o local division of laboro barter
• labor provided by familieso large familieso need for abundant land
• Exceptionso cities & townso areas near coasts & waterwayso Southern plantations
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Clash of CulturesSubsistence Culture
• Communal cooperationo emphasis on extended
family ties
• Fierce independence strong embrace of Jeffersonian republicanism
• distrust of outsiders & distant authority
• celebration of equality• scorn for luxuries
• Patriarchyo manliness based on
physical abilities/courageo ironclad authority over
family
Market Culture• Individualism/
competitiono immediate family over
extended family
• Stability/social order favored Hamilton’s worldview over Jefferson’s
• stronger central government• accepting of social
distinctions/hierarchy• pursuit of material gain
• Paternalismo manliness based on family
responsibilityo more egalitarian, loving
relationships
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The View from the Country
• The outside, market-oriented world was threateningo commercial agriculture required credit & depended on
markets a downturn could lead to ruin, even loss of land
o market values seemed foreign & immoral• materialism, no sense of family/community
• Yet the market was also inviting o extra income manufactured goods
• labor-saving tools and machines• pre-woven cloth, premade clothes• variety in foods & food preparation• “nice things”
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Market Expansion• Began in southern New England in the 1790s
o market economy & culture already more widespread there• “Yankee” values
o land crisis• by 1790s, too little land to continue to subdivide among
childreno eroded patriarchal authority smaller families
• farmers tried to buy more land o increased debto brought more & more families into a cash economy
• commercial farming• employment
• large-scale migrationo New Hampshire & Vermont, upstate New York
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The Industrial Revolution
• Meanwhile, industrialization was beginningo the “Rhode Island System”
• Samuel Slater• employed many farm families, housed
them nearby• spinning at the factory, everything else
“put out”
o the “Lowell System”• 1807-1814: with trade cut off, Boston’s
merchant elite invested in factorieso first true factory (all under one
roof) – Waltham, 1813o Lowell mill was founded in 1823
• employed local farm girls o these “mill girls” lived in strictly
run dormitorieso sent most of their pay home to the
farm
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Westward Migration• By the 1810s, cheap land
was unavailable in upstate New Yorko migrants Ohio, Indiana,
Illinoiso by 1830s, Mich., Wisc., & Minn.
• Migration was fueled by a Transportation Revolutiono commercial expansion &
transportation innovations were mutually intensifying
o 1780s-1820s: roads • macadamization
o 1790s-1820s: steamboatso 1820s-1840s: canals
• Erie Canal, 1825o 1840s-1930s: railroads
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• Westward migration accelerated expansion of the market into the interioro cheaper goods became
available to more areaso more people bought household
& farm items once made at home
o more and more farmers involved in commercial agriculture• NW: corn, wheat, cattle• NE: dairy, vegetables
• By 1850, o the large majority of farming
was commercialo the Northwest was fully
integrated into a national commercial network• tied especially strongly to the
Northeast
Westward Migration
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Negative Consequences
• For many, the market revolution meant instability o In cities, the traditional artisan
system was seriously disrupted• mass-production devalued
skilled laboro apprentices & journeymen
unskilled wage workers first labor unions
• economic downturns strikes, riots
o Farmers required credit to produce for market• had to sacrifice their independence• could become wealthy, could lose their land• those unwilling to enter market economy were left behind
o rising land values, inability to barter for services
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Positive Consequences• widespread access to
manufactured goodso labor-saving tools and machinery, luxury
items
• growth and spread of cities and townso ever-increasing economic opportunities
• professions, service industries, merchants• rapid growth of an urban middle class
o expansion of education
• rapid technological advancemento constantly improving industrial machinery,
transportation technology• Whitney & interchangeable parts – the
“American system” • farm equipment – e.g., automated thresher,
McCormick reapero communications
• telegraph – Samuel Morse, 1844• the “penny press”