The Market Revolution

Learning Targets & Objectives

• Explain the causes and effects of the economic changes in the U.S. during the Market Revolution.

• Explain the causes and effects of immigration during the years 1820-1850 in the U.S.

The Market Revolution Overview

• Definition: A period of economic growth and technological innovations (1820-1850s).

• Major Themes:

  • Linking regional economies (Northeast industry with Southern and Western agriculture).

  • Increased industrialization and urbanization.

  • Population growth and migration to industrial cities for job opportunities.

Key Effects of the Market Revolution

• Increased interconnection of regional economies due to transportation and economic growth.

• Emergence of commercial farming and industrial innovations leading to economic integration.

Henry Clay’s American System

• Purpose: To create home markets for Northern manufacturing and Southern/Western agriculture.

• Components:

  1. Bank of the U.S.

  2. Internal improvements (infrastructure)

  3. Protective Tariffs (to support manufacturing and raise revenue).

• Transportation Innovations:

  • Steamboats: Enabled faster and cheaper movement on waterways (e.g. The Clermont).

  • Erie Canal: Linked Eastern economy to the Old Northwest, promoting settlement.

  • Railroads: Gained prominence in the 1830s, reducing reliance on canals.

Economic Impact of the Cotton Gin

• Invented by: Eli Whitney.

• Function: Separated cotton seeds from fiber, boosting cotton production.

• Consequences:

  • Increased demand for slaves in the South.

  • Growth of the plantation economy and its interdependence with Northern textile factories.

Immigration and Urban Growth

• Timeframe: 1830-1850, over 3 million immigrants, mainly from Ireland and Germany.

• Irish Immigrants: Fled the potato famine, faced discrimination in Northern cities due to religion (Roman Catholic).

• German Immigrants: Left due to economic hard times, seeking better opportunities in the U.S.

• Immigrant Labor: Provided a steady flow of inexpensive labor but faced harsh working conditions (12-14 hour workdays, low pay, hazardous environments).

Rise of Nativism

• Nativists: Individuals born in the U.S. opposing immigration.

• Groups:

  • Native American Association (1837): Opposed immigrant voting.

  • Know-Nothing Party (1852): Political movement against immigrant rights and participation.

Industrialization and the Factory System

• Significance: Shifted work from home to factories, strengthening divisions between industrialists and workers.

• Social Changes:

  • Limited social mobility for ordinary Americans.

  • Workers seen as less important due to the role of unskilled labor.

The Lowell System

• Description: Recruited young women for employment in Lowell, Massachusetts textile factories.

• Characteristics:

  • Temporary work for women.

  • Economic independence gained through saving paychecks.

  • Sparked early labor movements for rights and better pay.

The Cult of Domesticity and Women's Roles

• Cult of Domesticity: Middle and upper-class women’s societal expectation to remain at home.

• Public Sphere: Women denied participation in employment and politics.

• Private Sphere: Defined by responsibilities for home and children.

Labor Unions during the Market Revolution

• Commonwealth vs. Hunt (1842): Established the legality of labor unions and strikes.

• Challenges: Despite legal backing, workers faced obstacles from factory owners and courts.

Effects of the Market Revolution

• Transformation: Altered work and living patterns, connecting U.S. economies to global markets.

• Interdependence: Farmers and industrial workers relied on each other for goods and raw materials.

• Urbanization: Led to social inequalities, with tensions between labor unions and industrialists.

• Transportation Improvements: Enhanced movement of goods and people, fostering regional interdependence.