The Emergence of a Market Economy (1815-1850)

After the end of the War of 1812, America (with its ships and commerce) participated in trade with Britain and Europe

• During the war, the loss of trade with Britain and Europe forced the US to develop more factories and mills (development of a more diverse economy, like Hamilton envisioned)

• During this era, the US became transcontinental power

• Westward migration (all the way to the Pacific coast)

  • Landhungry, ambitious people, energy and mobility in the country

  • Everyone seemed to be moving (in and out; farms, opportunities, ex: in Rochester, NY)

• Why so many immigrants? Cheap land, plentiful jobs, the promise of religious and political freedom

  • Also resulted in ethnic prejudices, anti-catholicism, and language barriers (difficult for many immigrants, ex: from Germany and China to adapt)

• Midwest- a rise of large-scale commercial agriculture

• Access to more distant markets, more corn, wheat, pigs, and cattle sold

• South- cotton (extremely profitable, dominated regional economy)

  • Farmers wanted a lot of lands and enslaved people moved into AL, MI, and  LA, AR (expansion into Gulf Coast states = required an  increased amount of workers, many of those who relocated from VA and Carolinas)

• Northeast- industrial development- labor-saving machines and water, steam-powered industry (=greater economic and social life)

  • Mills and factories- changed the lifestyle of people

  • Rise of factory system- more economic activity occurred out of home and farm

  • Urban middle-class emergence (including women)- relocated to cities and towns to work jobs in new mills, factories, banks, stores, etc.

• 1850- US = world’s fastest-growing technology

  • Technological innovations in communication and transportation-> region became an interconnected national marketplace

  • Shrinkage in time and distance bc of the railroad, steamboat, telegraph, and clipper ship

  • Transportation from the horse-drawn carriage to railroad car

• The nation began to divide into three powerful regional political blocs– North, South, and West- shifting alliances would shape politics until Civil War