Hist 1053/22/19Market Revolution, real economic growth that is sparked by the war of 1812. Transportation revolution, building infrastructure for transportation and westward expansion land act of 1820. Wheat is the major commercial crop in the Midwest, but cotton is the major focal point for cash crops. Full blown American capitalism spreads to agricultural west. Before market revolution, most production and trade was for local use -> more and more product is made for profit and to a larger consumer market.3 changes to Market Revolution; shift from self-employment to wage labor, artisan to factory production,substance agriculture to surplus production. Additional labor need to harvest commercial crop, money for fencing. Labor was scares, used up the land and simply abandoned it. Mortgage on farm itself if can ‘tpay for commercial agriculture. Economy is roaring, more money, more cash in pocket with commercial agriculture. Great promises of monetary rewards, however, there is real danger that if things do not go as anticipated and have not made profit loan cannot be paid back and farm is lost. (First American Dream, basis of citizenship, can’t vote)Apprentice to Journeyman artisan craftsmen. Quality vs Quantity, highly skilled labor into unskilled labor,factory production doesn’t carry dignity and independence of an artisan production. In charge of own profit and wages, self-employed, market revolution pushes people into wage labor. Factory workers have lost their independence and follow boss of the industry. Refer to major change; free man to wage slaveReal problem with the economy, how unpredictable it is, feature periods of wealth and prosperity followed by depression and poverty. First economic crisis the crash of 1819, tremendous expectations would continue to increase but no expectations to fall into rescissions. Regular periods of booms and busts – every 20 or 25 years economic crisis. Resulting in the lost of trust in banks; banks could print their own paper money, species were reserved and could give paper money. Could immediately exchange paper money for gold and silver. Bank could not hold up paper to gold and silver and then it spreads to other banks. 1929 Great DepressionEconomy expanded too much, bank which had been fueling the economy dependent on credit. Mismanagement of bank, too much credit was used to buy land and had to be returned. European market for American Agricultural products – importance of trade and foreign markets fueled by war. American economy dependent on European markets collapse after the defeat of Napoleon.James Monroe Era of Good Feelings 1816-1824 Republican Party. Second American Party system takes shape due to the economic crash. John Quincy Adams, Andrew Jackson two of the 5 candidates for presidency in
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