Economic Growth

1. Economic Growth What are the most important things in our current economy?

2. Industrial Revolution • Americans were working at home producing what ever they needed from soap, plows, tools, processed meat, furniture, clothing,all at home • In late 1700’s products bgan to be produced in factories in Eng., clothing made by spinning machines, power by water, people left farms to work in mills, called Industrial Revolution, @ 1800 came to America in N.Eng., poor soil fueled move, plenty of rivers for power, coal and iron prevalent, ports for shipping, Led to capitalism, putting up our own money in hopes of a profit, Led to Free enterprise or the right to trade freely however you choose • Scientific discoveries led to technology, spinning jenny and power loom simplified cloth making and sped it up, Eli Whitney a teacher and tutor from MA, simplified the process of removing seed from cotton, patented interchangeable part for muskets making repairs easier, Samuel Slater worked in Eng. Stole the ideas and brought them to America where he improved upon them • Francois Cabot Lowell hired young girls to work in his new factory system, housed, fed, and provided everything, girl became known as Lowell girls

3. Agricultural Progress • Most Americans lived on farms, 1820’s 65% on farms • NE farms were small, produced for local market • In Sth cotton production increased with cotton gin, increased with textile industry in NE and Europe • Sthrn planters used enslaved workers to plant, tend, and pick cotton, between 1790 & 1820 cotton production increased from 3,000 to 300,000 bales of cotton • West agriculture expanded, in Sth cotton expanded • North of OH River raised pork, corn, and wheat

4. Economic Independence • Most new industries financed by small investors- shop keepers, factory owners and even some farmers, invested some of own money in hope of a profit • 1830’s lrg businesses called corporations began to develop, led to sell of stock, selling shares of company • Charter for 1st bank of United States expired in 1811, 1816 chartered the 2nd Bank of the United States for 20 yrs, power to make lrg loans to businesses, State banks criticized saying it was a monopoly, said Constitution did not allow for a bank • Growth of industry and factories led to growth of towns and cities, developed along streams, Older cities of NYC, Boston and Baltimore grew because of commerce and trade • In the west Pittsburgh, Cincinnati and Louisville grew on rivers w/ products from western farmers • Building made of wood and brick, streets unpaved, farm animals roamed the streets, no sewers to carry waste and dirty water away, Cholera and yellow fever spread, 1,000’s died • Fire a big threat, few fire companies existed • Various jobs w/steady wages, added libraries, museums and variety of shops