Regional Economics Create Differences

7.1 First 10 Presidents of the U.S.

1.George Washington 2.John Adams 3.Thomas Jefferson 4.James Madison 5.James Monroe 6.John Quincy Adams 7.Andrew Jackson 8.Martin Van Buren 9.William Henry Harrison 10.John Tyler Another Revolution Affects America

Changes in Manufacturing • 1801, inventor Eli Whitney pioneers use of interchangeable parts • Interchangeable parts: identical pieces used to assemble products • Factory system: power-driven machinery, workers with different tasks • Mass production: production of goods in large quantities • Industrial Revolution – social, economic reorganization: • machines replace hand tools • large-scale factory production develops

Another Revolution The Industrial Revolution in the United States •After independence, U.S. income primarily from international trade •War of 1812 blockade shut down foreign trade •Americans begin to invest in domestic industries Another Revolution

New England Industrializes •Textiles profitable in the north; Industrial Rev. mechanized cloth making process • Weaving factories built in Lowell, Massachusetts •By late 1820’s, Lowell turns from sleepy, small town  booming manufacturing center •Thousands – mostly young women – leave family farms to work in Lowell

Two Economic Systems Develop

Agriculture in the North •Cash crops do not grow well in Northern soil and climate • Farms in North smaller than South • Typically grew corn •Grains need little labor & don’t yield great profit • Need no slaves •Northern slavery dying out by late 1700’s • most Northern states abolish slavery by 1804

Two Economic Systems Cotton Is King in the South • Eli Whitney’s cotton gin allows farmers to grow cotton for profit • Great demand for cotton in Britain, growing demand in North • Wealthy planters move west with enormous slave labor force • Plantation system established in Louisiana, Mississippi, Alabama (“Cotton Kingdom”) Slavery Becomes Entrenched • Cotton hugely profitable; by 1820’s demand for slaves increases • Increase in cotton production parallels increase in slave population The American System

Uniting the Nation’s Economic Interests • President James Madison proposes plan to unite regions in U.S. to create strong, self-sufficient economy: • develop transportation systems; make internal improvements • establish protective tariff • revive national bank

• House Speaker Henry Clay promotes plan as the American System Protective tariff provides funds to build transportation (infrastructure)

Transportation improvements would include better roads, canals

American System

Good transportation would lead to industrial growth: South, West could cheaply transport raw materials to North, East for manufacture

Manufactured goods could then be sold back to South, West The American System

Erie Canal and Other Internal Improvements •Railroads not yet common; first steam engine built 1825 •Many states build turnpikes (toll roads), pay for themselves •Erie Canal links Hudson River to Lake Erie: Atlantic to Great Lakes • Profitable in just 12 years • Other states build over 3000 miles of canals by 1837

The American System

Tariffs • Madison proposes Tariff of 1816 • Increased cost of foreign goods = more likely to buy domestic goods • Provides revenue to pay for improvements • Northeast welcomes tariff; South, West resent higher prices • Most leaders agree national bank, national currency benefit all The National Bank • In 1816, Second National Bank of the United States chartered for 20 years • James Monroe elected president (1816), begins “Era of good feelings”

Credit

• http://cache.eb.com/eb/image?id=92852&rendTypeId=4 • http://bikyamasr.files.wordpress.com/2009/09/andrew-jackson.jpg • Notes: http://www.digitalhistory.uh.edu/database