New ways of profit: The Cottage Industry and the Factory System

1. New ways of profit: The Cottage Industry and the Factory System

2. Scarves by Mr. Morelli: Cottage Industry What do I need? • A physical space to make the scarf • A loom to weave on and/or needles to make the scarf • Wool or cotton • Dye • CAPITAL to buy this stuff THE COTTAGE INDUSTRY • A middleman buys the wool, cotton, dye • The middleman hires ME to make the scarf in my house because I have the SKILL of weaving, knitting, or crocheting • When the middleman sells the scarf, I get a cut of the profit

3. SCARFAPALOOZA: The Factory System • THE FACTORY SYSTEM • Giant warehouse to have mechanical looms • Workers who may or may NOT have the skill to weave or knit or crochet, but can be taught how to operate the mechanical looms • THE AMERICAN SYSTEM: Assembly line + interchangeable parts + unskilled labor = mass production What do I need? • A physical space to make the scarf • A loom to weave on and/or needles to make the scarf • Wool or cotton • Dye • CAPITAL to buy this stuff

4. Which one is which?

5. Pros and Cons? Cottage Industry Factory System