Chapter 10 Expansion and Growth Section 1: Economic Growth.

Chapter 10Expansion and Growth

Section 1: Economic Growth

Growth of Industry

• Industrial Revolution: Historical time period where machines changed our American society

1. Time vs. Task2. Human power vs. Machine power3. Rural living vs. Urban living

Industrial Revolution in New England

• Massachusetts, Rhode Island, Connecticut, Vermont, and new Hampshire

• Poor soil• Fast rivers• Close to coal and iron• Ports

Capitalism

• Individuals put their own money, or capital, into a business in hopes to make money

Free enterprise

• American economy provides for free enterprise• People are free to buy, sell and produce whatever

they want.• People can choose where they work• Major elements of free enterprise is:1. Competition2. Profit3. Private property4. Economic freedom

Factory System

• Francis Cabot Lowell: 1814

New Technology

• Technology means scientific discoveries that simplify work. Simply put: MACHINES

Eli Whitney• Cotton Gin in 1793

Interchange Parts

• Eli Whitney: Identical machine parts that could be quickly put together to make a complete product.

Agriculture Expands

• Southern farmers and plantation owners began to grow more cotton due to demand

• Need for slavery grows• Cotton destroys soil so need for new land

increases: Move west

Economic Industries

• Individual investors: merchants, shopkeepers, farmers

• Corporations : Large businesses that sold stock, or shares for ownership

• Second Bank of the United States was chartered and could and did loan money for new businesses

Cities come to age

• New York City, Boston, Baltimore grew• Building grew• Hazardous because of dense population: fire,

disease• Advantages also increased: Art,

entertainment, museums, libraries etc.