January 6 th , 2014

1. January 6th, 2014 • AIM: How did industrialization and capitalism impact the U.S. economy? • DO NOW: What do you think is the most important invention human man has ever made? • HW IS DUE FRIDAY (POSTED ONLINE)

2. U.S. Markets expand • In early 19th century, rural American workers produced their own goods or traded with neighbors to meet almost all of their needs. • Farm families were self-sufficient. • Made their own clothing, candles, and soap. • How???

3. MARKET REVOLUTION • By midcentury, America became more industrialized, especially in the Northeast. • Workers spent their earnings on goods produced by other workers. • Farmers switches from self-sufficiency to specialization, raising one or two cash crops that they could sell at home. • Developments led to market revolution, which people bought and sold goods rather than making then for their own use. • Because of the market revolution, goods and services tripled while incomes rose

4. CAPITALISM • The rapid economic growth of the U.S. depended on capitalism. • Economic system in which private businesses and individuals control the means of production, such as factories, machines, and land. • Francis Cabot Lowell and other Boston merchants invested $400,000 to form the Boston Manufacturing Company, which produced textile.

5. Analyze the primary source • “America is a country in which fortunes have yet to be made…All cannot be made wealthy , but still have a chance of securing a price. This stimulates the race, and hence the eagerness of the competition.” • -The Western World • This was written by Alexander Mckay.

6. New invention • Inventor-entrepreneurs began to develop goods to make life more comfortable for more people. • For example, Charles Goodyear developed vulcanized rubber in 1839. • The new rubber didn’t freeze in cold weather or melt in hot weather. • Was first used to protect people’s boots.

7. How did this change society?

8. summary • How did industrialization and capitalism impact the U.S. economy?